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What are Affiliate Marketing Programs and How do They Make Money?

What are Affiliate Marketing Programs and How do They Make Money?

In this Information Age, technology has changed the lifestyle of every individual and, via the Internet, people are able to interact with one another across the globe, with no boundaries. With this globalization, businesses are also adopting new strategies to keep up with the competition. One such strategy is Affiliate Marketing, where businesses employ affiliate web publishers to promote their products and services over the Internet. It is a revenue sharing relationship between the online advertisers (or merchants) and online publishers (or affiliate marketers), whereby payment is based on the level of performance in the form of either, sales, clicks, registrations, or a hybrid model.

 

The relationship is simple: the affiliate marketer will place advertisements or links on his websites to either help sell the merchant’s products or services; or send potential customers to the merchant’s own website. In exchange, the merchant will pay the affiliate marketer for his (or her) marketing effort based on his performance.

 

In Affiliate Marketing programs, an affiliate marketer can earn by using either three of these methods or even a mixture of these three:

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PPC, Pay per Click – every time a customer clicks the merchant’s website link while surfing the affiliate marketer’s website; he is paid a certain amount for it.

 

PPS, Pay per Sale – every time a sale made due to the affiliate marketer’s website advertisement; he is paid a percentage or commission for it.

 

PPL, Pay per Lead – every time a potential client registers at the merchant’s website through the advertisement efforts of the affiliate marketer; he is paid a certain amount for it.

 

Affiliate Marketing programs are so popular that they have contributed to the rise of many leading online companies. One such company is Amazon.com. Amazon.com has been one of the first to significantly adopt this strategy. Now, they have over thousands of affiliate relationships and are enjoying the benefits that the program brought in.

 

This type of marketing offers a lot of benefits both for the merchants and marketers. It can be a great source of alternate income for affiliate marketers with a little amount of effort. Set up the website correctly, place the merchant’s link in this website and enjoy the profits that come in.

 

Merchants can also benefit from this program by enjoy free advertising from their affiliates who are doing the promotion. The more affiliate websites the merchant is related to, the more exposure his products get from it.

 

While an Affiliate marketing program has its benefits, it also has some downsides. For instance the merchants have to share some of their profits and if the marketer uses disagreeable means to bring customers to the merchant’s website, the merchant has to suffer the damage to his reputation. Similarly, affiliate marketers can suffer from merchants who refuse to pay the commissions.

 

Although affiliate marketing has been considered to be one of the best methods to earn money online, it may not be as simplistic as it appears. If you wish to pursue it, then do some thorough research on the merchants and their products. Ensure that the products are sought after and the merchant is a reputable seller with an effective affiliate marketing program.  After that, there is not much to do except occasionally make improvements to your site and wait for the profits to come in. 

Expert author and teacher of internet marketing. Here is an Internet Marketing Library as a FREE gift from me to help you make your first few dollars online: http://jillmatthewsonline.com

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