What is affiliate marketing how does it work

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What is affiliate marketing how does it work

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I. Affiliate marketing guides

The internet is now responsible for hundreds of billions of dollars in sales every year, and it is growing

larger each and every day. Many people have wondered how they too could make money with internet

marketing.

All of the large companies have websites where you can purchase their goods or services. But this is not

an option if you do not own a large company yourself. This is why many people are taking a close look at

affiliate marketing.

There are many advantages to using this strategy including to get started you only need an inexpensive

website or blog. A few of the other advantages are that you do not have to have any physical inventory,

there are no shipping costs, there is no need to have a lot of employees, or even any employees at all.

There really are people who make a very good living doing this, and even more making a nice side

income, but you do have to put some time and effort into it, and there is a learning curve. In other

words it is not a get rich quick scheme.

The Basics Of Affiliate Marketing

Perhaps the simplest way to explain affiliate marketing is that it is a way of making money online

whereby you ( the publisher) are rewarded for helping a business (the advertiser) by promoting their

product, their goods, or their services.

Simply put if someone follows a link on your site to the businesses website and makes a purchase you

will receive a commission for sending them there. By using ‘cookies’ (more on that later), you will still

get credit even if they come back at another time.


You have nothing to do with the transaction itself, that is all handled on the other end, which is why you

do not have to worry about inventory, shipping, billing, etc.

Another variation on this is Pay-per-lead programs where you earn a commission when someone

submits their contact information via a form. For example they may sign up to get more information,

take a survey, get a free trial or sample, etc.

Advertisers And Publishers

Advertisers use affiliate programs for lead generation, and of course, sales. Advertisers often prefer

affiliate marketing as a way to promote their products because they know they’ll only need to pay for

the advertising when there’s a conversion.

An advertiser can be a company selling a product like electronics, airline tickets, clothing, car parts, or an

advertiser could also be an insurance company selling policies. There are affiliate program for just about

anything you can think of.

They may earn less for each sale, but by having a network of affiliates promoting their products for them

they will save on advertising costs while increasing overall sales levels, and thus make more money.

A publisher is an individual that promotes an advertiser’s product or service in exchange for earning a

commission. This is done by putting an advertiser’s links on their own websites.

Advertisers generally provide a publisher with various tools (creatives) to help them in the form of links,

banner or text ads, and other things that can be incorporated into a website.

How Will I Know I Have Made A Sale?

Most affiliate programs work by using a link with a code embedded into it. The code is unique and will

only be used by you. It enables the advertiser to track where conversions come from by using a unique

user ID and cookies to track your sales.

Cookies are widely used everywhere, and this technology works with web browsers to store information

like user preferences, log in or registration information, and shopping cart contents. There are many

different types of web cookies and uses.

Have you ever opted-in to have a website “remember” your password and username for one of your

online accounts? That’s a cookie. In affiliate marketing, one task that cookies manage is to remember

the link or ad the visitor to a website clicks on.

The visitor’s browser receives the tracking cookie that identifies the advertiser, the publisher, the

specific creative and commission amount and even the date and time of the click. .


Through the use of browser cookies, any person who uses your link to make the desired action Money

coming out of a computerwithin a set amount of time is tracked as “your referral” by the browser

cookie. If the person makes a purchase you get the referral commission.

Even if a user sits with items in their shopping cart but doesn’t go back and make the purchase for two

weeks, you can still get the commission, provided the cookie is still active.

Always take a close look at what the advertiser is offering in terms of tracking and reporting tools for

affiliates. Remember to find out how long a tracking cookie lasts, the longer the better.

A good program will provide you with a way to access detailed automated statistics to view the number

of hits from your links, the number of sales and the total commissions you have earned, along with

other important information.

Choosing an Affiliate Program

Because there are such a large number of affiliate programs to choose from and many are structured

differently, here are some tips to keep in mind while looking for a good match.

First, you need to be sure you are comfortable with the product you’re promoting or selling and you

have confidence in the advertiser you are linking to.

Check the pages on the advertiser’s Web site. If it’s something you yourself would never consider

purchasing, or it possibly looks a bit unreliable, then chances are your visitors won’t be interested in it

either.

Next make sure you understand the affiliate agreement and that you can comply with it. Take the time

to check out the advertisers tracking and reporting tools before joining.

For new people it is generally best to start with a website on something you like, or know a little about.

If you already have a website a good rule of thumb is to pick affiliate programs that offer something

that’s relevant to your site.

II. Affiliate marketingstrategies


Affiliate marketing is a low-cost

way for merchants to build

awareness and showcase their

products and services. The model

is simple; it works as a

commission-based referral

system. A partner or affiliate

markets a merchant's products

for a "piece of the pie."

Affiliate marketing experts often make an income that can tally over five figures

per month, however only 1 to 5% of thousands of marketers achieve this level.

When an affiliate reaches this elite level they are often referred to as a "super"

affiliate.

How does one become a super affiliate? Can anyone do it? Super affiliates have

common tactics that they embrace and put into place. Anyone can become a

super affiliate, but it will not come without blood, sweat, and a hefty time

commitment. The typical super affiliate possesses the following traits:

Persistence

Patience

Thirst for Knowledge

These three traits combined with the following strategy gives you the formula for

the makings of a "super" affiliate.

1. Find a Unique Niche

The mistake that many affiliate marketing hopefuls have in common is that they

try to offer everything under the sun rather than focusing on a specific niche

market. Do not scatter your efforts, focus on your niche, promote it, and sell it

well.

2. Search Engine Marketing


Once you've built your affiliate storehouse you will need to promote it. Many

affiliates use pay-per-click engines. I suggest that you learn how to achieve organic

search results or hire a search engine marketing company. This will save you from

spending all your profits on pay-per-click engines. Only use pay-per-click engines

if you know what you are doing, otherwise all your profits may end in the hands of

Google Adwords or Overture.

3. Know Your Product, Know Your Audience

Create a resource. By taking the time to learn about the products and/or services

that you are offering you can create information that builds your credibility. That

credibility builds trust. If your viewers do not have trust in you more than likely

they will not purchase from your storehouse. If you want more information on the

psychological process that an online buyer goes through I suggest that you read

my article on the Five Levels of Internet Marketing and the Sales Process. This will

help you in creating a web site that converts well, which in return will increase

your cash flow.

4. Don't Put All Your Eggs in One Basket

Promote products from different merchants. This way if you have a problem with

receiving payment from a merchant, or their products do not convert well the

effects on your business will be minimal. Watch out for exclusivity agreements;

remember this is your business. Protect yourself and diversify so that you do not

feel the famine effect if something goes wrong. There is absolutely nothing wrong

with promoting niche products from different merchants.

5. Seek Knowledge and Embrace Change

If you are familiar with Internet marketing at all you know that what worked three

months ago may not work today. Stay on top of the trends. Seek knowledge, start

by learning something new about affiliate marketing daily. For example remember

those marketing tools called "banner" that use to drive sales at an astronomical

rate a few years ago? Well those banners developed a term called "banner

blindness." That means most online viewers will not click on banners even if they


do pertain to what they are looking for. To be a "super" affiliate you must always

spend time reading, learning, and embracing the changes in Internet marketing.

6. Don't Give Up

It's hard to do, and most of the time those dabbling in affiliate marketing give up

way too soon. Monitor your statistics, watch to see what is working and what is

not. Make changes when necessary. Do one thing daily to promote your storehouse

and be patient. Before you know it you will start getting payments.

Remember that it will not happen overnight. Encompass and develop the

persistence, patience, and knowledge. Then follow the tactics I've mentioned

above and you are on your way to becoming a "super" affiliate.

Education

What is affiliate marketing how does it work