How Does Affiliate Marketing Work

March 11, 2011 by  
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How Does Affiliate Marketing Work


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Home Page > Internet > Affiliate Programs > How Does Affiliate Marketing Work

How Does Affiliate Marketing Work

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Back in the day when every business had a storefront, some enterprising business owners developed a simple concept: finder’s fees. They would pay for a lead or sale – often quite well. Today, this idea has been updated to a program known as affiliate marketing. Affiliate marketing allows Internet business owners to capitalize on word of mouth and partners to increase their sales and their profits. It is one of the most popular methods for advertising a business.

At its most basic, affiliate marketing is quite simple. An Internet business owner partners with one of more affiliates. These partners then send website visitors (sales) to the website and are paid for doing so. This system is typically managed by a third party who ensures that contractual obligations are met, payment is made and that the process is seamless.

Affiliate marketing websites typically offer a vast array of products and services for an interested party to consider. For example, if you were interested in becoming an affiliate, you would visit one or more of the popular third party sites and select a product to represent. You can choose almost anything from diet pills to electronics or jewelry. You would then develop a website of your own and a marketing program and send visitors to your partner’s website. Depending on the contract you will be paid in one of three ways:

Pay Per Click: Under this plan, you will receive payment each time a visitor from your site clicks through to your partner’s site. The amount you are paid for each action is typically the lowest under the scheme – however many affiliates choose this plan because they only have to send traffic to their partner – nothing more
Pay Per Lead: A slightly more involved process, you will receive payment if you send a visitor to your partners site and they perform a designated action. Typically the visitor will need to fill out a form or opt-in to a particular program
Pay Per Sale: The most difficult, but most rewarding of the Affiliate Marketing Programs is pay per sale. As you might expect, you will only receive payment if you send a visitor to your partner’s site who converts into a sale.

There is one potential downfall of the affiliate marketing program: its reputation. Unfortunately, some affiliates have chosen to use tactics like spam mail and bots to promote their partner. In fact, this is the leading cause of spam mail throughout the world. Some consumers dislike this so much that they actively avoid purchasing products through a perceived affiliate program.

If have chosen to participate in an affiliate marketing program, you have become the master of your own destiny. Your income will be a direct result of the time and effort you put into your marketing plan. An enterprising individual with a little bit of computer savvy and an understanding of search engine optimization can successful partner with several different product lines and make a tidy sum of money. Businesses can also enjoy marketing, leads and sales that only need to be paid for when they work.

Contact us if you need help setting up your Affiliate Marketing Strategy, we can help.

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