Tag Archives: Affiliate Marketing

Things To Know About Affiliate Marketing

If you’ve educated yourself enough with the information available to us via the internet, then you should have realized by now that your pursuit of a career in the corporate ladder is futile at best. Basically, the idea is to start as an intern, then a regular employee, then move up to a supervisory and/or managerial position and finally up to the executive levels of the corporate business that you’re in. Personally, I have nothing against this kind of aspiration as I too once dreamt of such things myself; however, the toll it takes to get to exactly where you want to be could at least take 30 years; 20 if you’re exceptionally good at it. The problem is we all can’t be exceptional and aside from the fierce competition in play, you’ll also have to face the insurmountable amount of bureaucracy, racism, favoritism, gender inequalities and other negative things in order to literally move up the ladder. The trade-off is not an ideal payoff even from an optimistically assessed standpoint. Therefore I would advocate that you start your own business and the cheapest way to do it is by building an affiliate marketing blog or website.

Defining Affiliate Marketing, affiliate marketing is an easy income-generating business method where you take the role of the promoter and help the manufacturers and sellers connect with the end consumers. It should be clear that whether you take a passive or active role in this business, you are by no means the originator or creator of the products/services you promote. But you will get a small portion of the sales as compensation nevertheless. It’s basically a 3-way relationship between you, the seller and the customer. What Affiliate Marketing is not, if you get an unsolicited email inviting you to join an affiliate network and it’s asking for an upfront payment, then you definitely have to scrutinize them and find out whether or not they’re scam or legit. Go to the Better Business Bureau (BBB) and find out about the company, if you can’t find any, then go to affiliate marketing forums and discussion boards. They would know a lot about these scam sites as news spreads fast in social media and forums. Another thing to look for is if these people are selling you unrelated products or something that you will never be able to use, like the $350 “Secrets to Affiliate Marketing Success” book or some other catchy titles; although a few are genuine but they don’t charge you that high.

The truth is you can learn basic affiliate marketing from top ranking websites and blogs. In fact, they can teach you more useful information than all those specialized books and DVDs that other people are selling. Becoming an affiliate is free when you sign up to affiliate marketing programs and the only thing that will really cost you money is web hosting, which is around $70 – $100 a year for your affiliate marketing blog. A few other expenses may include a unique website/blog logo (optional), your electric bill; hire a blog writer (optional because you can write the blogs yourself) and probably paid advertising to promote your website or blog (optional).

Affiliate Marketing Overview

Introduction – by offering the proportion of the margin of your product or service to a large number of affiliates, you can dramatically boost sales albeit at a lower overall margin rate. By sharing the profits of a sale with other websites, it is possible for webmasters to generate higher sales volumes. By devising an attractive affiliate scheme and promoting and implementing that scheme in a professional manner, it is possible to generate thousands of website visitors using an affiliate of channel online. Search engines become less relevant if affiliates are sending your website the bulk of its traffic. Amazon.com is one of the pioneers of this business model selling million of books via ten’s of thousand’s of Amazon affiliates. Today, affiliate marketing is a very well established method of selling online. The main advantage of affiliate marketing is high sales volume with nominal sales effort at an extremely low cost. The main disadvantage is much lower margins, (as affiliates need paying commission to remain motivated).

What is an Affiliate Program? – an affiliate program is a contractual arrangement between the owner of a product or service (the Merchant) and a separate ‘Affiliate’ organisation, to pay a commission, in exchange for promotion of its goods and services. Typically, this entails an affiliate website adding advertisements (in the form of banners, buttons links and other textual material) promoting the Merchants offering. There are literally thousands of different affiliate programs in existence on the Internet today. It is usually the responsibility of the affiliate to redirect visitors to their website to the merchant’s website. At that point any customer service issues (such as ordering a product, dealing with customers on telephone delivering issues) are dealt with by the Merchant.

Affiliate schemes are normally automated and structured. Affiliates must pre-agree to abide by the merchant’s terms and conditions when signing up before entitled to promote anything. For instance, Merchants make it a condition that affiliates do not alter the Merchant sales copy to avoid any potential accidental or deliberate misrepresentation (and ultimately customer dissatisfaction). Affiliates usually have a unique tracking ID associated to their registration or website. By adding this html code to their site, Merchants can track where each individual sale came from. The tracking html is usually combined with a cookie or CGI script to allow the Merchants Affiliate Tracking system to collate a database of visitors and sales. It is normal that affiliates get paid one month in arrears and have an access to a monthly report outlining leads, sales and conversions. Affiliates are primarily motivated by money and so they are usually very interested in knowing the conversion rate of the Merchant.

Merchants benefit hugely from an affiliate marketing model as there is a virtual unlimited supply of keen entrepreneurs seeking out business opportunities to make money (in exchange for promoting an online business idea). Most affiliate schemes operate in a commission scheme based on payments monthly in arrears, payable from the merchant to the affiliate of either via PayPal or an alternative independent escrow service, or check in the post. Some merchants exclude or reject applications from prospective affiliates who do not meet their guidelines for type of website, physical location or regulatory approvals (particularly in Financial Services). The main benefit of an electronic affiliate business model is that it is completely scalable – it is possible to recruit an unlimited number of affiliates to promote your product and the cost of doing so can be negligible.