A lot of people are now getting into online businesses and onlinemarketing either to supplement their “real world” income or for it tobecome their primary source of income. Why? Because online marketingjust provides them a lot of benefits!
First, you can reach just about anybody in the world who has Internet access if you market your products online. That means a wider marketfor you, which can translate to larger profits. Second, setting up anonline business requires only a fraction of the cost required to set upan actual business establishment, which means a lot of savings for thebusiness owner.
Another aspect that has attracted a lot of people towards onlinemarketing is the fact that one doesn’t have to have his own products toget started. In online marketing, one can start making a lot of moneyjust by selling, or even by just trying to sell, other people’sproducts. And getting started with this kind of marketing strategy isactually quite easy. All that one needs to do is to set up an agreementwith an online retailer or merchant, and after everything is settled,one can immediately start making money by selling the merchant’s or theretailer’s products.
Incidentally, the most popular and the fastest growing method ofselling other people’s products online is affiliate marketing. Affiliate marketing, in its simplest definition, is a relationship between anonline merchant or retailer, who has products to sell, and hisaffiliates, who are willing to promote the merchant’s product on theirwebsite.
In a typical affiliate marketing set up, the merchant provides hisaffiliates with banners and text ads that link to his site. Theaffiliates will then get these ads posted on their website and they getpaid whenever traffic or sales is directed to the merchant’s website.Affiliates are often paid on commission basis, although other onlinemerchants would opt to pay a fixed fee for the affiliate’s compensation.
Starting to make money online with affiliate marketing is relativelyquick and easy. All that one has to do is to sign up as an affiliate for an online company that offers affiliate programs. An alternativemethod, and usually an easier one, is to sign up as a member of anaffiliate network—a network that hosts a variety of affiliate programsfor different online merchants or retailers. Signing up is usually free, although other companies and networks may require you to pay aparticular fee. Such fees, however, are made as payment for additionalservices that the company may render, like providing you with tools andassistance to jump start your online business.
When you sign up with an affiliate marketing program, you are usually required to fill out a form containing information about yourself. Some affiliate programs may also require you to present the URL of yourwebsite and describe its contents. This will allow the retailers toverify that you actually have a website with contents that are relevantto their products. Some affiliate programs, however, won’t require youto have a website. After filling out the form and all, you are thenallowed to choose the affiliate programs you want to promote.
After signing up with an affiliate program and being an actualaffiliate, you are now ready to start making a lot of money by sellingother people’s product online. How do you make money? There are actually a number of ways for you to earn money as an affiliate, and most ofthese ways depends on the type of affiliate marketing program you’vegotten into.
Many affiliate marketing programs compensate their affiliates ineither of three ways: pay-per-click (PPC), pay-per-sale (PPS), orpay-per-lead (PPL). In pay-per-click affiliate marketing, the affiliateis paid whenever he directs traffic to the merchant’s site. PPS and PPLaffiliate marketing programs work rather differently. In PPS, theaffiliate only gets paid when his referral converts into an actual sale. In typical PPS affiliate programs, the affiliate would usually get 15%to 20% commission for each conversion. PPL affiliate programs work thesame way, although affiliates are paid a fixed fee whenever his referral converts into a lead for the company.
Some affiliate marketing programs are two-tier programs, wherein theaffiliate is also allowed to recommend other affiliates to the merchant. In such affiliate programs, the affiliate would not only be paid forthe traffic or sales that he would direct to the merchant’s site butalso for the traffic or sales directed by the affiliates who signed upwith the program through his recommendation.
Yet another way of earning more profits with affiliate marketing isthrough residual affiliate programs. Residual affiliate programs areaffiliate programs where the affiliate gets paid a number of times foras long as the merchant keeps the customer the affiliate has referred to his site. One form of residual program gets the affiliate paid acommission every time the referred customer purchases something on themerchant’s site. Another form of residual affiliate program gets theaffiliate paid a percentage every month for as long as the company keeps the referred customer.
With a lot of options available and a lot of ways to earn money,affiliate marketing is undoubtedly the most popular and the easiest wayto make money by selling other people’s products online. As to how muchmoney one can get from affiliate marketing actually depends on theaffiliate. A dedicated and hardworking affiliate would certainly getmore from the program compared to those affiliates who would simply sign up and forget about the program later.
So decide which type of affiliate you are going to be, go out thereand find the programs that work for you. Then take the steps needed tobe successful.