Learn How Affiliate Marketing Works
Have you ever wondered how all those sites that review and recommend assorted products, or those sites that provide descriptions and “buy now” links make their money? The answer is through affiliate marketing. There are thousands of companies out their looking for help with selling their products. Buying advertising is not always the best option financially speaking, as you generally have to pay in advance, or invest a large sum of money before your see any profit. The solution many companies have decided to go with instead, is to offer a percentage of their sales to anybody who is willing to promote their products for them.
For instance, let’s say that I became and affiliate and the product I decided to promote retails at $100. Perhaps I would recommend it on my website, build an entire site around it, or find some other way to promote it. If anybody goes to the vendor site, through my referral link, and buys the product I am promoting, the company will pay me a predetermined percentage of that $100 sale.
This method has the ability to be extremely lucrative for both the affiliate and the vendor. The vendor, after all, is just giving up a small percentage of their profits, but may have done no work at all to promote it. On the other hand, the affiliate is able to partner up with a great product and does not have to concern themself with inventory, shipping, or any other details. Their main concern is sending interested people to the product and then receive their commission. As you can see, it is clearly a win-win situation for everybody involved.
When you join an affiliate program, you will be given a unique link that has your tracking ID attached to it. Therefore, when somebody clicks on that link, and is taken to the vendor site, the tracking ID lets the vendor know that it was your link that was clicked. They will know to add any commissions earned, off of that particular sale, to your account. This is an amazingly easy system to use and it does not affect the customer at all.
Unfortunately, affiliate marketing has a bad reputation in some circles. The main reason is because over the years, there have been many “poorly behaved” affiliates who use, spam, lies and other dishonest methods to con people into purchasing their products. They would also build sites that were essentially only designed to get people to click their links. This is the reason Google made many changes to their search engine and how it works. Luckily, this does not affect the “good guys” in this business.
The really good quality affiliates know that they need to provide a quality service and offer valuable information in order to make a high volume of sales and to make all of their hard work worth it. To be completely honest, most of the driving force of the Internet comes from affiliate marketing, due to the fact that it is one of the most profitable and honest ways of making money on the web.
Affiliate marketing can be a very lucrative way of making money if you stick to the philosophy of providing valuable information and services to your customers. It is certainly not something you can walk into and make a fortune overnight. However, once you have learned the tricks of the trade, and you know what you are doing, there is a ton of money to be made.