What Affiliate Marketing is All About
For those who have involved with internet business, you should familiar with affiliate marketing and how it works. However, for those who are looking for opportunities to make extra income online, but new to internet business may not clear with what affiliate marketing is all about, and how they can make some good money online with this business model. Let’s explore it to help those who are new to internet business understand it’s business model and the potential money making opportunities that they can get from affiliate marketing to make extra income online.
Affiliate marketing is a revenue sharing venture between a website owner / online marketer (known as affiliate) and an online merchant. Under this business model, website owner makes money by promoting products owned by an online merchant; they will place advertisement on his website or driving web traffic from various sources to his website or directly to the merchant landing page. If a sale or an action required by merchant such as fill up a form (lead generation), the affiliate will earn a commission which may based on the percentage of the sell price or a fixed amount.
Both affiliate and merchant are benefited under this business model. It is a win-win business model: affiliates can sell to make money online without the need to have their own products. Customer support and product delivery will be handled by merchant; whereas, merchant will save their advertising costs while getting their products exposure to the market through affiliates’ website and their marketing activities.
Affiliates can make money through affiliate marketing in three ways:
1. Pay-per-click. Affiliates put merchant’s ads at their website, and if it is click by the website visitors which leading to the merchant’s website, the affiliate will get pay, the amount may vary from a penny to dollars depending on the products and the commission given by the merchants.
2. Pay-per-sale. Affiliate will only earn commission if a sale is made through unique link placed at affiliate website or their marketing campaigns. The commission will normally be a certain percentage of the sell price or a fixed amount regardless of the sell price.
3. Pay-per-lead. Every time a potential customer registers at the merchant website through affiliate link, the affiliate will earn a commission based on this action. The commission for pay-per-lead will normally be a fixed amount pre-determined by the merchant.
Affiliate marketing opens the opportunity for website owners and those who are interested to make money online a great way to earn money without actually having to “do” anything. All it involves is placing advertisements at their website or running ad campaigns using their affiliate link, sit back and wait for profit to roll in. The backend portion which involves payment processing, product or service delivery and customer supports will be handled by the merchant.
Affiliate marketing is revenue sharing business model that benefit both webmaster and the online merchant. It provides a simplest way for people who want to work from home and earn their living from internet to make money online.