Basics of Affiliate Marketing
Unless you are selling your own products, the next best thing to do is
probably by selling an affiliate product. This means the product will be
offered by offered by an affiliate merchant, and administered through an
affiliate program.
Affiliate marketing is basically a pay-by-performance sales system.
Product owners give you a link, banner, button, or other code to put on your
web site or in an email, and they will pay you for sales made when
someone clicks that link, button or banner.
Example of companies like Amazon, Target, Hallmark, LL. Bean, and Verizon –
all pay affiliate commissions to people who buy through affiliate links.
An affiliate commission is like any other commission – when you
make a sale, you get paid. The commission may be a percentage of the
retail price, or it may be a flat dollar amount. There are other forms of
affiliate compensation – for example, some companies pay per LEAD, not
per SALE.
An affiliate merchant is an individual, or a company, that pays your
commission on one of their affiliate products.
Some affiliate merchants are huge corporations that offer thousands of
products. But other affiliate merchants are individuals like you and
me. They have developed a product or a service, and would rather pay
affiliate commissions than spend money on expensive advertising. Even
paying a 50% or higher commission, they consider affiliate
marketing a low-risk form of advertising. After all, they only pay for actual
sales made – not for hit-or-miss ads that may never make a sale.
As you can imagine, some big merchants like Amazon have
thousands of affiliates, in many different countries. Just keeping track of all
those affiliates, their names and addresses and links, as well as issuing
checks in the correct currencies, would be an administrative nightmare!
So most affiliate merchants use an affiliate program provider to
help them keep track of affiliate links and commissions, and to issue
payments via check or electronic transfer. In exchange for a small
percentage or transaction fee, the affiliate program provider will keep
track of your affiliate contact information, issue affiliate identifications
(affiliate IDs), and send out the affiliate link code for your customers to
click on.
Affiliate program providers also keep track of commission
amounts, and send payments to affiliates like you, either via check,
Paypal, or electronic transfer. It’s free to join an affiliate program provider.
The largest and most popular affiliate program providers in the U.S. are:
- Clickbank
- Commission Junction
- BeFree / Reporting.net
- LinkShare
- ClixGalore
- Performics
- Affiliate Traders
- Dark Blue
- FineClicks
- Web Sponsors
- ShareASale
- QuinStreet
New affiliate products are launched every day/week.
There are thousands of merchants, selling almost every type of hard
goods, digital goods, or services through affiliate programs.
Just sign up for a few of those programs above, and begin to browse their
list of merchants and products.
In addition to these big affiliate program providers, many
companies run their own, small-scale affiliate programs. To find these
smaller programs and their affiliate products, simply type the product or
market into a Google searchbar, followed by +affiliate or
+affiliate+program. It may take a bit of digging, but you just might find the
perfect product by using the search engines.
Posted October 18, 2007
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