What is Affiliate Marketing?

Affiliate marketing is a method of promoting web businesses in which an affiliate is rewarded for every visitor, subscriber, customer, and (or) sale provided through his or her efforts. It is a modern variation of the practice of paying a finder's fee for the introduction of new clients to a business. Compensation may be made based on a certain value for each visit (Pay per click), registrant (Pay per lead), or a commission for each customer or sale (Pay per sale), or any combination.

Merchants like affiliate marketing because it is a "pay for performance model", meaning the merchant does not incur a marketing expense unless results are realized.

Some e-commerce sites run their own affiliate programs while other e-commerce vendors use third party services provided by intermediaries to track traffic or sales that are referred from affiliates. Some businesses owe much of their growth and success to this marketing technique, although research has shown in general the increase to be approximately 15-20% of online revenue

Affiliate programs are a type of partnership between a seller and an advertiser. The advertiser directs visitors to a sellers website and for this the advertiser receives a percentage of the revenue generated from the visitors coming from the advertiser. The advertiser is said to be an affiliate of the seller.

The percentage paid by the seller to the affiliate is set by the seller and varies depending on the type of products, the profit margin on the products sold and how keen the seller is to promote his or her products through affiliates. Percentages anywhere between 10% and 75% are common.

The advantage for the seller includes additional sales and that the seller knows exactly what margin he or she will have on products sold to visitors coming from affiliates. If the seller markets his or her products through advertising using sponsored links, banners, text ads or similar, the seller does not know before starting a campaign what number of sales will be generated per dollar spent on advertising. The seller thus does not know if the campaign pays off or not. With sales generated from affiliates the seller knows exactly what percentage of revenue from a sale goes to the affiliate and therefore knows exactly how much is left for the seller. A seller who offers an affiliate program can have hundreds or even thousands of affiliates.

For the affiliate participation in an affiliate program allows the affiliate to make money without having a product to sell. For the affiliate, revenue can be generated simply from attracting visitors. The affiliate does not need to worry about procuring or shipping products or about providing any kind of support to the buyer. The affiliate has a wide range of choices for how to attract visitors. In a common setup, the affiliate has a website from which visitors can be sent to the sellers website. The affiliate may also have a blog which generates so much traffic that it pays of to direct visitors to a sellers website. A blog can be created for free and so is the choice of many affiliates. Finally, an affiliate may direct traffic to a sellers website by advertising using banners, text ads or sponsored links as available through Googles AdWords, Overture or similar services. If the affiliate attracts visitors from such advertising only, the affiliate does not need to create a website or blog and so does not need to create any content for such.

Affiliate programs and paying of commissions to the affiliate can be supported by third parties or be handled directly between the seller and the affiliate. If paying of commission is handled directly between seller and affiliate, the affiliate normally needs to sign up for the affiliate program on the sellers website. In case of third parties handling payment of commission it is common that no agreement needs to be set up between the affiliate and the seller. The third party however will then have separate agreements with the seller and with the affiliate. Commissions are normally paid by cheque but in some cases it is paid by PayPal or wire transfer.

Technically affiliate programs are normally supported so a visitors IP address is recorded when the visitor follows a link provided by the affiliate to the sellers website. If a purchase is made and payment is collected, the visitors IP address is determined again, and if it matches that recorded when a link was followed, the commission can be paid instantly. In some cases a cookie is stored on a visitors computer when a link is followed and this is used to identify the source of the visitor.

In short, affiliate programs allow sellers and affiliates to share the revenue generated for sales from sellers websites and can generate considerable income for both parties.

To learn more about affiliate marketing, along with some excellent tools and resources we recommend that you take a look at Affiliate ClassRoom.

Recently while surfing the internet, I came across a very interesting website that teaches people how to setup on online business. One aspect to increase sales is to establish an affiliation program.

An affiliation is a relationship (an agreement) between two parties in which one party sells the products or services of the other in exchange for a commission. A good affiliation program, even with a competitor, can supercharge online sales. The product owner wins with additional sales and the affiliate wins by receiving a commission.

The affiliate does not have to create or transport the product that is sold, or even collect the money. This is all provided by the owner of the product. This is a huge advantage for the affiliate because startup costs are low. The beginning affiliate only needs to primarily focus on product promotion. In many case, the owner even supplies the affiliate with marketing information.

For sale of goods over the internet, the affiliate provides a URL hyperlink for the customer to click on. This hyperlink links to the website of the owner of the product and has a special code so that the affiliate will get credited when the sale goes through. The credit can range from 1 to 50 percent (or higher) commission, depending on the affiliation agreement.

Some ways for an affiliate to increase sales include:

1) Offer something for free in exchange for the email address. People love to get free stuff and if they like what they get, they may reciprocate at a later time with a purchase.

2) Capture the email addresses to an opt-in list. From that list, send repeated emails to increase product awareness and to eventually trigger sales.

3) Market unique products with unique web sites. This provides product focus.

4) Include testimonials from real customers. (Be sure to get the customers permission first.)

Advantages for the affiliate include:

1) Low startup costs. The other party develops and produces the product.

2) No inventory. The other party manages that.

3) No handling of the product. The other party transfers the product to the customer.

4) No order processing. The other party sets up the merchant accounts and collects the customers money.

5) No shipping costs. The other party gets the product to the customer.

6) No downstream warranty costs. The other party handles all customer commitments.

7) If the product doesnt sell, dump it and move to something else.

The main advantage for the producer (the other party in the affiliation relationship) is increased sales through increased product exposure.

A properly implemented affiliation program really is a win-win for both the producer and the affiliate.


To learn more about affiliate marketing, along with some excellent tools and resources we recommend that you take a look at Affiliate ClassRoom.

The new year 2009 might be a tough year for many businesses but if you do it correctly, it can be a very successful year for you.

Before you start with new things, you should make sure that your current website is up-to-date. The following checklist will help you:

Step 1: Check your company information


Does your about page draw a current picture of your company? If you have a staff listing on your website, is it up-to-date?
Check these pages as well as the copyright notice and the privacy police of your website to make sure that your web pages don't look outdated.

Step 2: Check your contact information


Does your website list your current phone and fax numbers? Are the mailing and email addresses listed on your website correct? You'll lose customers if your contact information is outdated.
You should also check the email addresses that you use on your website. Are help@yourdomain.com, order@yourdomain.com, etc. redirected to the correct recipient? Send test email messages to all addresses that are listed on your website.
Many businesses have so strong spam filters that many legit customer email messages don't reach them.
If you have contact forms on your website, make sure that they work and that they are easy to use. If someone doesn't enter a correct email address in your contact form, does the error message make sense?

Step 3: Check your auto-responders


Do you send automated confirmation messages when someone sends you an email message? Does your shopping cart send email messages after an order?
Check the text of your automated messages to make sure that it says what you want to say and that is contains current information.

Step 4: Check the links on your website


The older your website is and the more pages your website has, the more likely it is that it contains some broken links. For that reason, you should regularly check the links on your website.
You can find a free link checker in the free demo of IBP. Download the free IBP demo version and select the link checker under IBP > Tools > Broken Link Checker.

Step 5: Check if your web pages are ready for Google


If you want to get high rankings on Google, you must make sure that it's easy for Google to parse your web pages. Can Google easily find all of your web pages? Do you target the right keywords on your web pages? Are all elements of your web pages optimized for Google? You can check this with IBP's Top 10 Optimizer.
The economic times are tough but it also depends on you whether 2009 will be a successful year for your website or not. If you do the right things, chances are that your website will help you to get more customers this year.

Thousands of people have quit their JOBS and started
earning money exclusively online. There are a lot of ways
you can do it on the Internet... such as creating your own
products, offering a service, licensing products, etc.

Many people have done it without having ANY products of
their own. This is done through affiliate income or selling
other people's products for a commission.

Here's how it can be done.

1. Don't sell anything you don't own.

This rule is listed first for a good reason. You should
never sell anything that you don't own yourself. If you
don't have enough faith in it's results to buy it yourself,
then you have no reason to sell it to others.

Think about this for a moment - if you don't own it and are
unwilling to purchase it how can you endorse the product?
How can you honestly answer questions about the product?
The answer is you can't.

Too often people are willing to jump on the bandwagon and
promote whatever the hyped product of the week is...
without stopping to think of the value of the product
itself. No matter how many other people are recommending
it, you shouldn't if you haven't bought it yourself.

2. Only offer complementary products and services.

If your web site is about sports products, then you
definitely shouldn't be offering cigarettes in another
program. It doesn't make any sense at all, and these
products defiantly do not compliment each other. You are
unlikely to sell both products to the same customer.

A good example of selling complementary products would be,
if you sell golf products, then you could sell golf
vacations, golf clubs, golf subscriptions, golf training
products, etc. All these products would entice the same
consumer. Meaning once you get the person interested in
golf to your site you increase your chances of selling them
more than one item. This would not be the case if you sold
golf clubs and gardening books.

Make sure everything you offer goes together. You should
earn multiple streams of income, but they must all be
related on the same subject.

3. Build an opt-in email list.

I can not stress enough how vital this is to your online
success.

Ask any top business person what their most valuable asset.
It isn't their products. It isn't their location. It isn't
even their employees.

The most valuable asset to any business is their customer
list. The most valuable asset to any Internet business is
the opt-in email list. Your email list IS your Internet
business.

If you don't have an email list, you don't have an Internet
business.

Offer an affiliate product...and you earn money once. Offer
a subscription to your opt-in email list and you earn money
forever (from hundreds of offers you can make to that list).

4. Concentrate on your brand.

Use your opt-in email list to build a relationship with
your subscribers. When they first subscribe, they may not
know you from Peter. So tell them about yourself. Express
your opinions.

On your first 2-3 contacts do not sell them anything. Tell
them about yourself, your experiences, stick your neck out
and tell them what you think. Let your customers get to
know you. You have to give people a reason to know, like,
and trust you.

You don't have to be the best writer on the planet. You
don't have to be just like your favorite guru. Just write
some things that are exclusively you in your emails.

Sure, some of them will get mad. Some will ask to be
removed. Some will cuss you out. Deal with it. The way I
see these people are by removing themselves from my list I
do not have to waist time on trying to sell to them. I just
move on to the people who are interested and I have a
greater chance of making money off.

If you're just like everyone else, then why should anyone
choose to buy from you?

5. Write your own endorsements and reviews.

Every affiliate program has solo ads, endorsement ads, and
classified ads available. You can use them sometimes, but
they should never become your only marketing pieces.

But on top of every ad you should have your OWN opinion of
the product. You should tell your customers in your own
words why they should buy this or that. Then use the ad
copy you were given UNDER your own statements.

The same thing goes for online newsletters. You can use
content and articles from other people, but every single
email you ever send out should have something written from
you...in your own words...at the top of it if nowhere else.
It could be just a short 'what's going on' section or an
editorial.

You don't have to be professional writer. You just have to
have opinions and be willing to stick your neck out giving
them.

6. Offer extra specials.

You don't have to do this every single time, but you should
be making special offers for your list. Why should they buy
a product from you instead of one of 1,000 other affiliates
offering it?

Give them something extra they can't get from other
affiliates!

You can tell them that if they buy affiliate product A from
you...you'll give them this special report.

All they have to do is buy the product and then email you
the receipt. You'll send them their extra bonus report
right over.

It could also be an eBook, an email consultation, a phone
consultation, an ad in your newsletter, a link on your
special links page, etc. Give them something extra special
with some of your offers and watch your checks soar. Make
sure the items you give for free are related to your
product.

7. Ask for the sale.

You have to ask for the sale. If you don't ask you will
never get. The worst they can say is "no" and all that
means is you are no worse off than you are right now. But
if you ask and they say yes you are in a much better place.

You can't be wimpy or shy. You can't just give away a lot
of content hoping someone will click on your little link
somewhere and magically decide to buy your product. You
have to tell your prospects and customers why they want and
need your product. You have to tell them what they get when
they buy.

If some subscribers get mad when you send them an offer,
help them remove themselves from your list. It's funny, but
most profitable promotions have also get the most
complaints and removes.

I've had people email me saying, "If you're just trying to
sell something online, then I don't even want your
newsletter." Guess what? Remove them. That is the end
purpose of your newsletter, any content you provide, or
anything you do online.

Remember why you started on online business - to make money
not to give out free gifts and content.


To learn more about affiliate marketing, along with some excellent tools and resources we recommend that you take a look at Affiliate ClassRoom.

The following article includes pertinent information that may cause you to reconsider what you thought you understood. The most important thing is to study with an open mind and be willing to revise your understanding if necessary.

Being a successful affiliate relies very much on focusing - focusing in out-doing all the other average affiliates and becoming a super affiliate instead. The lack of focus can result in a lot of negative outcome. There are few things that an affiliate needs to take caution of:

1. Affiliate marketing is not a get rich quick scheme

It is just like the other businesses you need to put in effort, you need to have hard work in order for you to establish the business, but with the easiest and lowest risk in history. Theres no guarantee that you will earn a big fortune overnight, or even days, weeks, months or years.

In fact, its not certain whether you will make any money at all. Working as an affiliate marketer, you need to think logically that you cant turn into a millionaire overnight. You will, however get to reach that goal long term, especially when you build your list.

2. Lack of will and desire

Many affiliates tend to give up on selling a product because they either cant make any sales at all, or the amount of money earned is too small. The lack of will to work harder and the unwillingness to desire for better results will easily lead to their downfall.

Ones desire to succeed in anything will lead him to his goal thats certain. Unless it is something that is not humanly capable of or something harmful, anything that states a record of human success is achievable. If you want to be a super affiliate, desire deeper than anyone to succeed in being one.

You may not consider everything you just read to be crucial information about Affiliate Marketing. But don't be surprised if you find yourself recalling and using this very information in the next few days.

3. Distracted by environment

Do you have any environmental distractions around when you are doing your work as an affiliate marketer? It can be anything - the TV, radio and cell phones are a few of the strongest distractions. If you want to relax - set your own time, lets say 20 minutes maximum but after that force yourself to get back to work.

Another effective way for you to limit yourself from distraction is working out a time table and work according to your schedule. Anything you do, work depending on the time table so you wont be lost.

4. Distracted by other products

Anyone who is involved in the Internet marketing will be affected by this distraction theyll keep buying different products, thinking that it is the answer to solve their needs which is very, very wrong.

If you ever see products that sound too miraculous forget it. The practical way of working hard for success is your only way. Of course, working hard doesnt mean that you should do everything. You can outsource the smaller jobs to people and keep yourself accomplishing the more important tasks.

5. Laziness

The killer disease for any tasks, any jobs. This of course, doesnt need any explanation. The only cure is to have a strong will in working hard thats it.

There's a lot to understand about Affiliate Marketing. We were able to provide you with some of the facts above, but there is still plenty more to write about in subsequent article.

To learn more about affiliate marketing, along with some excellent tools and resources we recommend that you take a look at Affiliate ClassRoom.

Marketing SEO blogs Marketing & SEO Blogs - Blog Top Sites DigNow.org Small Business Blogs - BlogCatalog Blog Directory Blog Directory blog search directory seo, adsense, blogging, affiliate marketing, article marketing, home based business, business opportunities, advertising Marketing / SEO Blog Directory of Home Businesses Blogs Blogarama Blogarama Announce your website free Yousaytoo revenue sharing community