123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Internet-Marketing >> View Article

Affiliate Marketing Basics

Profile Picture
By Author: JC Anderl
Total Articles: 5
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Affiliate marketing is one of the fastest growing ways to
make money on the Internet. You can become an affiliate
for any number of thousands of companies. Most of the
time it is quick, easy, and free to join.

To start with, you basically sign up as an affiliate and
agree to receive a commission on every sale that you refer
to the company. You can refer customers from a website,
newsletter, advertisements, or almost any other way that
you can think to promote a product.

Quick Setup

You can get started very quickly and cheaply compared to
almost any other business opportunity. Although it isn't
as easy as putting up some banners and waiting for the
checks to roll in, affiliate programs do avoid the
problems of inventory, shipping, customer service, or
variety of other issues that a business must address.

Second Stream Income

Affiliate programs make a great way to supplement you
income if you already have a product or service that you
are selling. Half the battle is getting people to visit
your website, ...
... so if you are already generating a good
amount of traffic, then adding related affiliate programs
and promoting them correctly can add a good sized stream
of income to your business.

Pick a Program

One of the most important steps in starting an affiliate
program is making sure that you sign up with the right
company. There are a number of factors to consider.

1. Commission - Some companies pay as low as 2% commission,
while others can reach upwards of 60-70%. Obviously you
aren't going to make any money promoting a product that
you receive a very small percentage of the sale. Your
best off making sure to get at least 20% of the sale.

2. Product Price - You also want to pay attention to how
much the product costs. You might make 50% commission,
but if the product only costs $6, then you are only going
to get $3 a referral. You can do much better, you should
be able to get at least $20 per referral for any good
paying affiliate program.

Find a product with both a decent commission and a decent
price. Your primary goal is making money, so make the
most of your time spent referring customers.


3. Two-Tier Programs - There are programs that pay you a
commission on direct referrals, and then they pay you a
smaller commission on all referrals from affiliates that
you signed up. This is a great perk, although the
previous two factors are more important.

4. Referral Length - You should also check out how long
after you referred a customer that you still get credit.
With advanced tracking systems in place, companies can
keep track of customers for a long time after they first
were referred. Some companies promise that they will
still give you credit for a year after you first referred
a customer. Since many customers don't buy on the first
visit to a site, this can also be a great perk.

5. Lifetime/Residual Income - This is actually a very
important aspect to consider. Many companies that charge
a monthly fee for their services will pay you a
percentage every month as long as they keep the customer.
For example, the hosting company I use, Host4Profit,
charges $24.99/month for its hosting services. They pay
their affiliates an even $10/month for every referral.
This gradually builds up into a steady, sizeable income.

6. Reoccurring Commissions - You can also find programs
that will pay you a commission for every purchase that
a customer you referred makes. For example, if i refer
Joe Surfer to a site, they will pay me for every purchase
that he makes, not just the initial purchase. The length
of time varies, sometimes you can get reoccurring
commissions for a month, a year, or maybe forever.

Pick More Programs

If you can make a lot of money with a couple of products,
wouldn't it make sense to increase your income by just
joining more programs? It sounds good, but it has major
flaws. Your income depends heavily on the traffic that
your site receives, and you are only going to be able to
convert a certain percentage of visitors to buyers of any
of your affiliate programs. Too many programs dilute
your conversion rate of visitors to buyers, and actually
has other negative effects.

If you join too many programs, you won't have time to
promote any one or few of them effectively. To be a
successful affiliate, you do need to spend time marketing
your programs. Instead of picking every program on the
Internet, you are much better off picking a few good paying
programs, and spending a lot of time marketing them.
About the Author JC's website, Redlionbooks.com, specializes in advice about Internet marketing and web site promotion. Free access to articles and ebooks, learn how to market your product or service online at Redlionbooks.com

Total Views: 174Word Count: 744See All articles From Author

Add Comment

Internet Marketing Articles

1. Why Seo Is Required For Different Businesses
Author: Vikram kumar

2. How To Create An Ecommerce Website Design That Performs? Find Out Now!
Author: Liam Mackie

3. Turn Your Vision Into Reality - Hiring A Website Company
Author: Liam Mackie

4. Enjoy High-speed Fibre Broadband For Seamless Connectivity
Author: Julian Serle

5. Unlocking Hidden Potential: 2025 Optimization Techniques To Maximize Your B2b Lead Database
Author: Demanday group

6. Beyond Word Of Mouth: Why Company Website Is Crucial For Your Business
Author: Advert India

7. Seo Company In New Zealand: Take Your Digital Presence To The Next Level
Author: Top Rank Digital

8. How Google Ads Experts Help Small Businesses Compete With Big Brands?
Author: Value Hits

9. The Importance Of App Development For Modern Business
Author: Adithiya A

10. The Benefits Of Professional Seo Services In India For Global Businesses
Author: Anoop Krishnan

11. List Of Qualities A Good Website Company Have
Author: Liam Mackie

12. Benefits Of Fibre Broadband For Businesses- A Comprehensive Guide
Author: Julian Serle

13. Travel Seo Strategies: How To Increase Bookings And Visibility
Author: Anil Kumar

14. How To Craft Compelling Content: The Heart Of Digital Marketing
Author: Chris Tony

15. The Future Of Digital Marketing: Why Email And Social Media Must Go Hand In Hand
Author: Chris Tony

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: