By
Brian Hunter
Affiliate marketing, or re-selling as it is sometimes known, is a huge business on the Internet. It is a cooperative effort between merchants who have a product to sell and those who volunteer to get sales for them for a commission on each sale. For many years now, affiliate marketing has proved to be a cost-efficient, measurable method of delivering long-term results. It has become a favoured method for Internet sites that are trying to make some extra or additional income for their site. Every day, new people get interested in affiliate marketing and want to make money out of it. But in many cases, these new affiliates do not fully understand the affiliate world and make costly mistakes largely through lack of Internet experience.
One of the common misconceptions that new affiliates have about affiliate marketing is 'selling' - though selling is an important activity of affiliate marketing and the central function of a business operation. Another is that affiliate marketing is commonly linked with 'advertising'. While the importance of advertising in marketing a certain product is not to be underestimated, the truth is, advertising like selling, is just one part of the many functions of marketing.
In affiliate marketing, the affiliate is compensated for every visitor, subscriber and/or customer provided through his efforts. This compensation (usually referred to as commission) may be made based on a certain value for each visit. The most attractive aspect of affiliate marketing from the merchant’s viewpoint is that no payment is due to an affiliate until results have been attained.
Affiliate networks that act as a third party between the merchant and the associated affiliates typically run affiliate marketing. The network provides the technology to deliver the merchant’s campaigns and offers. The affiliate network also collects commission fees from the merchant and then pays the affiliates who are part of the program.
A merchant is any web site owner that wants or desires to take advantage of performance-based marketing. The benefits to the merchant are many. First, the merchant has control of the program and can insist upon his/her own terms and conditions. The merchant needs to do their part by researching interested affiliate websites to ensure that they are a good fit for that particular website. Finding a fit for their merchandise would be the key to more generated income. This gives the merchant more access to markets and customers without him spending valuable time searching them out. Banner ads on affiliate sites are not distracting to the site user. It might produce interest for that product and drive the consumer to the merchants’ website. It is also the merchant who decides how much he is willing to pay for each sale that results from a visitor sent to him from an affiliate.
The affiliate or the affiliate marketer also sees a lot of benefits. The affiliate is usually a web site owner who promotes one or more merchants and their affiliate programs. Affiliate marketing can generate a full-time income for the affiliate, but this is not an easy task to accomplish. The affiliate needs to have a better understanding with the merchant what the commission will be, expected payment method and time involved in the contract. The affiliate has also the responsibility to ascertain for the merchandise what their user base would be most interested in. As an example, if the affiliate site has a user base of mainly stay-at-home mothers, then on-line job openings such as surveys could be a good match for them. This group may also appreciate direct links to children’s products and informational sites along similar lines. Merchandisers often provide targeted, best-seller items and personal support to their affiliates. Many will often offer sales promotions from time to time and this can benefit both the merchandiser as well as the affiliate.
Affiliate marketing is an extremely advantageous arrangement for both the marketer and the affiliate. In the case of the merchant, he gets added exposure (and sales) for no more cost and any cost (commission) only arises when sales occur. Additionally, he can have as many affiliates as he chooses. From the affiliates point of view, he does not need to find a product, web site, sales letter or support. His only task is to promote the merchants product by advertising, etc. Additionally for him, he can be an affiliate of as many merchants as he wishes.
All in all affiliate marketing can be a cost effective way for the merchant to expand his business and an inexpensive and quick way for an affiliate to start a business of his own. It is a partnership where each party, by working together, can build themselves a profitable and long-lasting business.
Copyright Brian Hunter 2006
To learn more about my automated marketing system, check out my new site at Affiliate Cash Secrets for more tips on affiliate marketing. Feel free to distribute this article in any form as long as you include this resource box. You can also include your affiliate link when you sign up at my Affiliate Cash Secrets website.
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