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What Is Affiliate Marketing And How It's Used?

Apr 1, 2008
A huge business online is built from affiliate marketing. The definition of affiliate marketing varies, but it always means the same thing.

Affiliate marketing is a deal between a merchant and an affiliate's website or non-website. Affiliate marketing is a proven long-term, low-cost, abundant marketing method used for many years.

People are always trying to make more money with affiliate marketing. It's most commonly used for adding some extra or additional income from your website online.

But in many cases, these new affiliates do not fully understand the affiliate world and make costly mistakes. In other words, affiliate marketing has often been misunderstood. One of the common misconceptions that are being associated about affiliate marketing is "selling", though selling is an important activity of affiliate marketing and the central function of a business operation.

Another is that affiliate marketing is commonly linked with "advertising".

Advertising in marketing is important, but is not to be underestimated. In fact, advertising and selling are only part of the bigger picture of marketing.

In affiliate marketing, an affiliate is compensated for every visitor, subscriber and/or customer provided through his efforts.

What you make is dependent on what the specific deal is and is usually based on the value of the visitors. The merchants deam affiliate marketing very interesting since they only pay where credit is due, meaning on completed task or proven results.

Affiliate marketing is most often run by so called affiliate networks, which job is to integrate affiliates with merchants. Each of the parties have different roles when it comes to affiliate marketing.

The affiliate network in the example is acting as a middle man third party. They are merely integrating the affiliates and merchants. The affiliate networks only show the merchant's campaigns to potential affiliates.

The affiliate network also collects commission fees from the merchant and then pays the affiliates which are part of the program.

Merchants are website owners who to take advantage of having perfomance based marketing. Being a merchant has many benefits.

First, the merchant maintains and operates the affiliate program. If it would be extracted, the merchant needs to do their part by researching interested affiliate websites to ensure that they are a good fit for that particular website.

When merchants find a match for their merchandise they hold the key to increased revenue. Now the merchant has access to markets and customers without having to spend a lot of time and energy doing research.

A smart way is to use banner ads on affiliate sites, because it can easily attract an eye and generate interest in a product, which in turn drives the consumer to the merchants site.

Now it's up to the merchant to decide how large the comission is for the product and how much he is willing to pay the affiliate for the sale.

The affiliate or the affiliate marketer also sees a lot of benefits. The affiliate is a web site owner that promotes one or more merchants and their affiliate programs.

It's not uncommon for affiliates to earn a full-time income. It's not easy, but it can be done. The affiliate will usually want to know the commission, expected payment and how much time is involved in a signed contract.

The affiliate in question has a small responsibility as well. They need to know what their buyers are most interested in. Examples are sites that have a user base of work at home moms, then an idea would be to have online jobs in the form of surveys or similar is a close enoug match.

The previous group would also like sites that relate to childrens products or information about that. Merchants usually have at least a couple best-seller items, and should have personal support for their affiliate. There is always a mutual benefit for affiliates and merchants in any sales promotion.
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