Affiliate Marketing - Lesson 2

Site updated on January 15, 2010  •  Updates (0)  • 

Benefits of Being an Affiliate Marketer

Affiliate marketing has become one of the most effective ways to advertise online. It is also one of the easiest ways for anyone with a website to make a profit online. Affiliate Marketing is an agreement between a merchant and a website owner. The website owner, or the affiliate, allows the use of their site for the promotion of the merchant's products by linking to the merchant's website. In exchange, the merchant pays a commission to the affiliate on all sales generated by the affiliate. Every time someone clicks on the link on the affiliate website and proceeds to make a purchase, the affiliate gets a commission. The merchant will pay the affiliate only when a customer clicks on the product link and makes a purchase.

Affiliate marketing programs are described as a win-win situation for both the merchant and the affiliate because of the pay-for-performance scheme. Both the merchant and the affiliate enjoy some benefits in affiliate marketing. There are many benefits on the merchant's side. It gives the merchant a wider market in which to advertise a product or service. Affiliate marketing will give the product or service the maximum exposure that it may not get with other traditional advertising techniques. The more affiliate sites a merchant has, the higher the traffic, which can convert to sales. Affiliate marketing is the equivalent of having an army of sales people who will do the advertising and will only get a commission if a customer purchases.

Meanwhile, since an affiliate marketing relationship is a win-win situation, the affiliate also enjoys many benefits. Foremost among these is the easy way to make a profit. The affiliate can earn by having an ad or link to the merchant's website, which prospective customers will hopefully click and proceed to make a purchase. As soon as the customer clicks on the ad on the affiliate's site, is redirected to the merchant's website and goes on to buy that particular product, the affiliate earns a commission. The more referrals there are the more profit for the affiliate.

Affiliate marketing is an excellent way to earn money while at home. There are virtually no production costs. The product is already developed and proven by the merchant, and all you have to do to find, as many prospects as you can that will bring in the profit for both the merchant and the affiliate. Affiliate programs are usually free to join, so affiliates do not have to worry about start-up costs. There are thousands of products and services you can choose from. You can find affiliate programs for every product under the sun. Surely, there is a product or service out there that is relevant to your website.

In addition, there is absolutely no sales experience necessary. Most affiliate programs offer excellent support when it comes to providing marketing material. The simplicity of affiliate marketing allows you to be an affiliate marketer at the least cost and the most comfort. You can even build a successful affiliate marketing business right in the convenience of your own home. In affiliate marketing, your responsibility is simply to find prospects for the merchant; you do not have to worry about inventory, order processing, and product shipping. These, along with customer service support are the duties of the merchant.

Because of the global reach of the internet, you can easily find thousands of prospects. You can intensify your advertising campaign by exploiting more aggressive and productive strategies such as viral marketing. By attracting more prospects, you also maximize your potential to earn. Another benefit of an affiliate marketer is the minimal risk involved. If the product you are advertising is not making money then you can dump it and choose another. There are no long-term binding contracts tying you to products that are not making enough money.

All the same, the best benefit of being an affiliate marketer is the opportunity to increase your income; and you can make a profit even if affiliate marketing is only a sideline business. With your own affiliate business, you can earn easily earn extra income, although you do have to exert effort and use your imagination to maximize your earning potential. Indeed, affiliate marketing is one of the simplest and most effective business opportunities on the web today.

The Different Types Of Affiliate Marketing

Affiliate marketing programs has never been as popular before as it is today. Why? There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of affiliate marketing have become clearer to a lot of people now than they were before.

Today, both the merchants and the affiliates can see clearly that affiliate marketing can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy way of earning profits online by doing what they like most, and that is by creating websites.

Just as the popularity of affiliate marketing has shifted into greater heights, so has the people's outlook about it changed. No longer is affiliate marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.

So the question now is what type of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the same? Or are there affiliate marketing programs that work better than the others?

There are actually different types or classes of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate marketing programs, however, falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).

• Pay Per Click (PPC)

PPC is the most popular type of affiliate marketing for affiliates with small websites, and probably the easiest way for them to earn money. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever someone clicks through the merchant's banner or text ads. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant's site. However, typical fees for PPC affiliate programs are small, usually not exceeding a dollar for every click.

• Pay Per Performance (PPP)

PPP affiliate marketing is the most popular among merchant and is also the most lucrative type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an action—that is whenever the visitor he has referred actually buys something from the merchant's site or when the visitor becomes a lead. This means a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

Pay-per-performance affiliate marketing can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).

• Pay Per Sale (PPS)

In a pay-per-sale type of affiliate marketing, the merchants pay the affiliate a certain fee whenever the visitor he has referred to the merchant's site actually buys something from the merchant's site. Affiliates are often paid on commission basis, although other merchants would opt to pay a fixed fee. But no matter what the basis of the fee is, it is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.

• Pay Per Lead (PPL)

The pay-per-lead type of affiliate marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who rely on leads for their company to grow. In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant's site fills up an application form or any similar form related to the business of the company. Compensation for this type of affiliate marketing is based on a fixed fee whose rates approximate that of the fixed fee in the PPS type.

Aside from these three specific types of affiliate marketing, a lot of other affiliate marketing types exist. If the classification is based on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing. There is also another type of affiliate marketing that pays the affiliate each time the customer he has referred purchases something from the merchant's site.

• Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing

These types of affiliate marketing are based on the different levels or tiers in the affiliate network by which payments are made. In a single-tier affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. All the previously mentioned affiliate marketing types (i.e. PPS< PPL, and PPC) fall under the single-tier classification.

• In two-tier affiliate marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to the merchant's site, but also on every traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation. Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for a wider number of affiliates in different tiers in the affiliate network.

• Residual Income Affiliate Marketing

In residual income affiliate marketing, the affiliate gets paid not only once for every customer he has referred to the merchant's site. Rather, the affiliate is also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis.

The different affiliate marketing types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of benefits. Which type of affiliate marketing will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate marketing program will suit your needs and characteristics best.

Don't Make These Common 4 Affiliate Mistakes!

Myths concerning affiliate marketing are appealing and attractive. People who do not know the entire system the wrong way round are prone to believing that it is something capable of giving them great fortune overnight. Stories concerning affiliates who earn tremendous amounts of money swim in their heads, and while these stories are as true as they can be, there are those who believe that they are going to have the same fortune once they indulge in this particular business.

It is true enough that affiliate marketing is financially rewarding. People who have gone through everything to be able to succeed in this business are reaping the seeds that they untiringly sowed. Many of them enjoy the kind of existence that was not possible for them to have had under ordinary circumstances. Having gone through the A-Z of affiliate marketing, however, these people are the ones who know that while such business is lucrative, there is absolutely no easy money in it.

Ignorance of this fact is one of the main reasons why there are people who fail miserably in the internet business. There are those who believe in myths concerning the easy money involved in systems such as affiliate marketing. They do not know that there are those who have wasted time, effort and too many resources in trying to pursue the life of ease that they believe this business will give them. And so they go into affiliate marketing armed with nothing but myths and fantastical notions of wealth swimming in their consciousness, never realizing that they bound to make mistakes that would prove to be their downfall.

What may be the reason why in businesses such as affiliate marketing, many are called but few are chosen? Perhaps the answer lies on the fact that many affiliates make mistakes that result from their ignorance of facts concerning how the entire business runs. Affiliate marketing is not as simple as an affiliate promoting a merchant’s wares through his website and getting paid for it. It is also about knowing the market and the customers at hand.

Discovering what the most common mistakes affiliates make can perhaps dispel the gloom about myths surrounding affiliate marketing by correcting some wrong notions about it. It might also be able to make those concerned understand that like any other business, there are dos and donts involved in this one if they want to make each of their steps count. The first common mistake affiliates make is their lack of knowledge concerning principles involved in their business. This refers to the affiliate’s knowledge of search engines in particular.

Affiliate marketing involves advertising, and advertising through the internet could not have been better without the existence of search engines. What every affiliate has to do is to make these search engines his best friend through studying search engine optimization closely. This way, he is able to know what to do in connection with building a better website to ultimately use for his business.

The second is that affiliates make the mistake of stuffing their sites with banners that do not provide enough information about the product at hand. The best way to battle this mistake is to provide good content hand-in-hand with such banners. It is important for customers to know and understand the features of a product, and good content will be able to help them realize this goal.

The third is that there are affiliates who make the mistake of promoting only one product. Consequently, customers are not given enough options to choose from. There is also the risk of generating fewer sales as compared to having more options for customers ponder about. It is always better to give them a few better alternatives than to give them only one.

The fourth is that there are affiliates who make the mistake of promoting too many products. As a result, customers are confused and end up beyond making a choice. It is perhaps good to give them only the best choices. This is because it is ultimately up to them to judge which one is the best for them to patronize.

All in all, affiliates that are doomed to fail in this business are those who do not exert enough effort to understand everything involved in the industry that they are in. Knowing their path step by careful step will prove to be beneficial to them, as there is no other way to succeed than to go through any path slowly but surely.

Do You Have What It Takes To Be An Affiliate Marketer?

Each of us has its own interest or has a hobby. Some love all kinds of books, music, and movies while others are into sports and traveling. There are also people who love to grow flowers and loves pets. These things help us to relax and forget our everyday problems and troubles and these things are common to people. But not everyone has a hobby that makes money for him/her except if you love your job.

Money making hobby could let you treat your family and friends with the extra cash or you can even quit your current job that you almost certainly hate. That is why many of us today go online to start a business; their reasons are either to supplement their income or to gradually replace their offline income from their job. Affiliate marketing is a great way to start in making money online.

Affiliate marketing is a revenue sharing partnership between a web merchant and one or more affiliates. The affiliate is paid a commission for referring clicks, leads or most often sales to the merchant. An affiliate’s advantage is that he can make money in a business where he doesn’t have the upfront costs of creating his own product, and he doesn’t have to worry about e-commerce, bookkeeping, or even customer support for it is the merchant’s responsibility.

Now, for sure you want to be an affiliate marketer with all that benefits an affiliate could get. But, do you have what it takes to be an affiliate marketer? Before you begin your venture into affiliate marketing, you need to decide first which area interest you. What products do you know the most and which products you could do the best job of selling? Once you discover your specialty, perseverance, patience, determination comes next. These are the qualities you should possessed to be a good affiliate marketer.

Too many online business prospectors lose out because they become impatient. You also have to know what your strengths are, the things in which you are good at and your capabilities and abilities related to your chosen streak. And the most important thing is you have to have a strong desire to succeed in affiliate marketing.

To be an affiliate marketer is not an easy task. You have to learn the techniques of marketing your product or service. You shouldn’t be looking at every chance because marketing is all about attracting you to look at this or that particular opportunity. To be a successful affiliate marketer, you should learn how to listen and to be taught because in life we need to learn skills to get by.

For an affiliate marketer, you should know how to market your site effectively, in will enable you to get thousands of visitors coming to your site which transforms into more sales. This only means that the faster you set up a website, the bigger your chances of making money online faster. You should avoid the same mistakes some affiliates make everyday, they are only building a short-term business where they just make a small sale. Make sure you do understand that you should be building a long-term affiliate business and not just something that makes you a few dollars on one sale.

It is also better to have knowledge on how to upsell your visitors for expensive services. This will in turn make you become recognized as an expert in your field and making money will be easier. There are some people thinks that just by having affiliate links on their website will bring them good profits. This can have some truth to it, but then most successful affiliates still believe that making use of strong marketing campaigns for their affiliate programs is still important. But affiliate marketers become much more successful when they treat their customers or online visitors as friends. Make a commitment to establish relationships with your customers and especially with visitors to your site. It is very important for an affiliate marketer to have a good business relationship with customers or visitors.

You should also be creative. The real key to being successful with affiliate marketing is to develop a good content based website and weave your affiliate links into all your content. You have to provide your prospects with good, quality content to keep them coming back to your site. So, do you have what it takes to be an affiliate marketer?

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