“Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s marketing efforts.”
Basically, you as a publisher will be rewarded when you help a business by promoting their products or services. So for example, if you sign up for Clickbank/Amazon etc affiliate program and promote it’s products then you will get a commission when the visitor you send from your site makes a purchase.
Affiliate marketing is probably one of the quickest and cheapest (not the easiest) ways to start making money online as you don’t have to create any products yourself. You simply link up a buyer and a seller, and you take a commission on the sale that has been referred by you.
How Does Affiliate Marketing Work?
When you join an Affiliate program and choose the products that you want to sell, sellers provide you with a unique affiliate code that you can use to refer traffic to the target site. Most affiliate programs will offer ready made text links, banners and other forms of creative copies whereby you only have to copy the code and place it on your website to start referring traffic. When interested visitors click on these links from your site they get redirected to the product site and if they purchase a product or subscribe to a service you as the referrer make a commission.
The sellers can track your performance through your affiliate ID and the affiliate softwares (eg. WP Affiliate Platform) that they use. You also have complete, real time access to all sales and commissions stats.
You don’t need to sell products all the time to make a commission. Different affiliate programs can use different payment terms such as:
- Pay per Sale: In this program a merchant pays you a percentage of the sale price when the purchase is completed.
- Pay per Click: In this program you get paid based on the number of visitors you redirect to the Merchant’s website from your affiliate site, whether or not a sale is made.
- Pay per Lead: You get paid once the referred visitors provide their contact information on the target site by filling out a simple contact form.
Why be an Affiliate Marketer?
Affiliate marketing is considered to be one of the world’s fastest growing and best internet marketing techniques to earn money online and the reasons are:
- Cost effective: Marketing on the internet is cheap and you don’t have to worry about the production cost as the product is already developed by the seller. You don’t need a physical business location or hire employees either.
- Global Market: Online marketing gives you the opportunity to reach people all over the world easily.
- No Fees: You don’t need to pay anything to join affiliate programs.
- No Storage No Shipping: You don’t need to worry about storage, packing or shipment of the product. They are all taken care of by the seller.
- No customer support: You don’t need to provide any customer support or deal with consumer complaints as the Seller does that for you.
- Passive income: A regular job can give you a fixed income as long as you continue to work. Depending on your marketing skill Affiliate marketing can create a steady flow of income even when you are not in front of your computer.
Work from home: If you make enough money then you don’t have to worry about going to work at the same time every day or getting stuck in traffic. You can work in the comfort of your own home