Back To Basics: Affiliate Marketing

01 September 2008, by A. Cedilla

Online affiliate marketing has become by far one of the most effective, efficient and easiest ways to make your products and brand known, and make money at the same time. It’s also considered a very profitable and beneficial revenue sharing business relationship between the affiliate marketer and the merchant.


What is affiliate marketing?
Simply put affiliate marketing is a revenue sharing agreement between a business owner – the merchant – and a website owner -the affiliate. The website owner agrees to promote the products or services and the merchant who offers them. He advertises the merchant’s products or services on his site– you may remember various ads, links and banners on websites or popular blogs you’ve just visited — and in return gets a commission for every successful referral.


Every time a prospect is referred to the merchant’s web site through the affiliate’s efforts and makes a purchase (pay-per-sale method) or visits (pay-per-click method) or registers (pay per-lead method) he earns a commission. Unless one of these actions takes place the merchant does not pay anything.

Affiliate marketing is a win-win situation.
Affiliate marketing programs are seen as a win-win situation for both the affiliate and the business owner because of the pay for performance methods in the agreement. They both reap the benefits:

  • The merchant gets access to a wider market in which to advertise his products and services without additional cost or too much effort. So he gets maximum exposure for his product and services that he wouldn’t have gotten without hundreds or thousands of affiliate marketers promoting his products.
  • The affiliate also benefits in that affiliate marketing is an easy way to make a profit. He has no production cost since the merchant has already developed the product. All the affiliate has to do is advertise, advertise, advertise – find as many customers as possible – and make a sale. It’s also an excellent way to make a living from home without any sales experience.


How do affiliate marketers maximize their potential to earn?
Affiliate marketers can do this by using the support and resources provided by the merchant. Most affiliate programs provide excellent marketing materials that the affiliate marketers can use and grow their marketing skills and knowledge. Their utmost responsibility is to find targeted traffic to their websites and turn them into customers. Because of the global reach of the Internet they can easily find thousands of prospects.

They can also explode their marketing campaigns by using all the current advertising methods… use of email marketing, ezine marketing, direct marketing and article marketing etc.


The ultimate benefit the affiliate could have is that he can get out of the 9 to 5 rat-race, increase his income and work whenever he wants to.

Finally one caveat about affiliate marketing… There are some myths that affiliate marketing is easy and one can make a fortune online overnight through affiliate marketing. There is some truth to it… being an affiliate is an easy way to make money online but there is no overnight riches to be had. As in everything of true value, it take time and work for the real rewards to show themselves.

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