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iliate Marketing is the relationship between website owners and merchants whereby the merchant offers the website owner (affiliate) a commission fee structure for linking to his/her merchant site to offer goods or services for sale. Affiliates publish websites so they are also known as publishers and merchants advertise on affiliate sites, so they are also called advertisers.
Affiliate Marketing to a merchant is somewhat different. Merchants can use the services of the network providers on the Internet to build an online sales force. Hence, either party benefits by making more money.
Affiliates can recruit others to advertise their website and add to their own income. In the process, the affiliates sites get more traffic and this increase in visitors fills the sales of the sponsors products.
Quite simply, an Affiliate Program is a partnership with an online merchant who compensates you for any sales you send that merchant via links on your site. An Affiliate Program is thus an easy way to earn money off traffic to your site. Your earning potential is not only limited to sales - you can also refer other affiliates like yourself!
The Merchant will pay you a percentage of all the sales that you refer. This means you can utilize your knowledge of both audiences to maximize your earning potential. Each time you introduce another Web master to the program, that Web master begins to market on your behalf, and in doing so increases your earning potential!
An affiliate network is a value added intermediary providing services for affiliate merchants and affiliates. Merchant services can include tracking technology, reporting tools, payment processing and access to a large base of active affiliates marketing online through content publishing. For affiliates services may include one click application to new merchants, reporting tools and payment aggregation.
This type of network provides offers from merchants that are promoted on the affiliate websites, or in newsletters. Commissions to affiliates are based on pay-per-lead (PPL), pay-per-sale (PPS), pay-per-action (PPA) which is sometimes referred to as cost-per-action (CPA) or pay-per-click (PPC) models. Each network varies in terminology, but all provide a variance of these services to affiliates and merchants.
Affiliate marketing is ideal to start an Internet business working from home. Because the merchant will provide you with a product , which is tested and proven, there are no production costs involved. For most of the affiliate programs, it is free to sign up, so there are very little or no start-up costs. There are literally thousands of products on the Internet, so it should be not a problem to find one or more products that suit the content of your site.
To start an Internet home business with one or more affiliate programs, you dont need previous Internet marketing or sale experience. A good affiliate program will provide you with Internet marketing training and support. Many opportunities have a website with product information, sale and marketing materials to help you promote the products on your website. Very often there is also a help desk and a forum, where you can have questions or need help.
In conclusion, affiliate marketing is the first Internet home business opportunity you should try when you have a website. It is easy to start, no start-up costs, and it is a great opportunity to increase your income. There is no risk involved and you can start the Internet home business next to a full time job. It will take some time and efforts to learn the Internet marketing techniques, before you will make some extra money online, but the earning potential is huge.
Indeed, affiliate marketing is one of the easiest and most effective home business opportunities online today.