Understanding Affiliate Marketing
By Rebecca Taylor
Affiliate marketing can seem confusing to those who don”t understand what it is about. This misunderstanding has also led to this form of business model getting a bad name. Knowing the basics of affiliate marketing is the key to your success.
A simple explanation of affiliate marketing is that it is a system of sharing revenue. The revenue is then split between the merchant and the webmaster that helps sell the product or service. To do this the webmaster places advertisements for the project on their website.
Despite seeming easy, affiliate marketing isn”t all about sitting back and watching the money roll in. It is real work if you want to succeed. The three most common ways to begin earning from an affiliate program are:
* Pay-Per-Sale: The website owner is paid only if a sale is made
* Pay-Per-Click: A payment is made to the website owner each time a browser clicks the link leading to the merchant’’s website
* Pay-Per-Lead: Each time someone visits a merchant’’s website and signs up as a result of the advertisement on an affiliate site, the affiliate gets a commission
Multi-Level Marketing
There are a number of different models in affiliate marketing, from double-tier to multilevel tiers. A multi-level or multi-tier system doesn”t work for all affiliate merchants. A tier in this context refers to each level of affiliates allowed to participate in the program.
Some affiliate programs allow each marketer to sponsor additional partners. Programs that offer multi-level affiliates often promote additional bonuses and incentives. For example, sponsors may earn a percentage of each sale their downline makes.
Finding the Right Affiliate Marketers
Affiliate merchants don”t always have it as easy as it may appear from the outside. As a merchant, you want two things: traffic and sales. How you achieve those sales depends on the type of marketing you do.
Not everyone who wants to become an affiliate marketer is a good fit for your product or service. It also makes sense to use a wide mix of affiliates to ensure that a wide customer base is reached by the ads they place. Despite this it is better to find websites that are a good mix for your business rather than to spread yourself out among hundreds that are not.
For example, if you sell sunglasses it may be good to find affiliates with customers who are likely to want sunglasses. Websites that cater to outdoor enthusiasts would be a great fit for your affiliate program. A site catering to hikers is a prime example of a good fit in this case.
Understanding the Commission System
Most affiliate systems pay commission based on the percentage of each sale. The typical amount is around 15 to 20 percent. While this is the average the rates vary widely from anywhere between three percent and 50 percent.
Affiliate marketing is good way to build up a successful home business. In fact, many website owners use this system to earn a decent living in addition to their core business. Understanding affiliate marketing is seen in some quarters as the “key to online success.”
Success in affiliate marketing calls for dedication and a willingness to learn continuously about marketing online. The field is constantly changing and growing. Nonetheless with hard work success is possible. Some affiliates make very little or nothing at all because they fail to learn and do the necessary work.
About The Author
Rebecca Taylor is a coach for the Affiliate Program at Article Marketer. She assists and coaches Article Marketer affiliates. Learn about Article Marketer Affiliat Support here!
