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Making Money Online With Affiliate Marketing
More and more individuals are now getting into online money making businesses and internet marketing with two main reasons. It’s either they want to make money online to supplement their regular 9-5 job income or they seriously want to make a living on the internet.
Internet marketing simply provides them a lot of benefits. One of the very obvious benefits is that if you market your products online you can easily reach just about anybody in the world as long as they have an Internet connection. This simply means a wider market for you, which can translate to larger profits.
Another benefit of internet marketing is that the process of setting up an online business requires only a fraction of the cost required to set up an actual business establishment. That means a lot of savings for the entrepreneur.
The Lucrative Business of Selling Other People’s Products
One feature that has enticed a lot of people towards internet marketing is the fact that you don’t have to have your own products to get started.
In internet marketing, you can actually start earning large revenue merely by selling, or even by just trying to sell, other people’s products.
The most popular business model with this make money online method is popularly called as affiliate marketing.
Affiliate marketing is said to be the most well-known and the fastest growing method of selling other people’s products online. Affiliate marketing is simply defined as an agreement or a relationship between an online merchant or retailer, who has products to sell, and his affiliates, who are willing to promote the merchant’s product on their website.
Getting Started With Affiliate Marketing
Getting started with affiliate marketing is actually fairly easy. All you need to do is simply join an online retailer or merchant’s affiliate program and you can at once start making money by selling the merchant’s or the retailer’s products.
In a conventional affiliate marketing set up, the merchant typically provides his affiliates with banners and text ads. These marketing tools are linked to his site with the affiliate’s code in it.
The affiliates will then get these marketing ads placed on their blog or website. They receive payments whenever traffic or sales is directed to the merchant’s website.
Affiliates are usually paid on commission basis. However, there are other online merchants that would opt to pay a fixed fee for the affiliate’s payment.
Joining Affiliate Programs
As mentioned above, it is relatively quick and easy to starting making money online with affiliate marketing. All that you have to do is to sign up as an affiliate for an internet company that offers affiliate programs.
An easier method when looking for affiliate programs to join is to sign up as a member of an affiliate network. An affiliate network usually hosts a variety of affiliate programs for different online merchants or retailers. This means to you have a plethora of affiliate products to choose from and promote.
Signing up as an affiliate is usually free. However, other affiliate companies and networks may require you to pay a particular fee. Such fees, however, are made as payment for additional services that the company may render, like providing you with tools and assistance to jumpstart your online business.
On the contrary, some affiliate networks will “pay” you just for joining their affiliate programs and promoting their products.
When signing up with an affiliate marketing program, it is a common practice that you are required to fill out a form and give some information about yourself. After filling out the form and all, you are then allowed to choose the affiliate programs you want to promote.
Other dorky affiliate programs may also necessitate you to provide the url of your blog or website and you are usually required to describe its contents.
For me this is a very dorky requirement and I don’t usually give a damn to such networks. Anyway the purpose of them requiring a website is to allow the retailers to verify that you actually have a website with contents that are relevant to their products.
There are many other affiliate programs out there that won’t require you to have a website. This way, you can start making money without having to spend money for a website.
How Do You Make Money With Affiliate Program
After signing up with an affiliate program and being an actual affiliate, you can immediately start making a lot of money by simply promoting or selling other people’s product on the internet.
So, how do you make money? There are actually several methods to make money online as an affiliate. However, most of these methods depend on the kind of affiliate marketing program you’ve chosen to join.
Payment Model. Basically, most affiliate marketing programs pay their affiliates in either of three ways:
- Pay-Per-Click (PPC) – the affiliate is paid whenever he directs traffic to the merchant’s site.
- Pay-Per-Sale (PPS) – the affiliate only gets paid when his referral converts into an actual sale
- Pay-Per-Lead (PPL) – affiliates are paid a fixed fee whenever his referral converts into a lead for the company
As you can see PPC affiliate marketing pays the affiliate whenever he directs traffic to the merchant’s site.
PPS and PPL affiliate marketing programs work rather differently.
In PPS, the affiliate only gets paid when his referral converts into an actual sale. Probably the most popular model many beginning marketers commonly got into.
In the conventional PPS affiliate programs, the affiliate would usually get 15% to 20% commission for each conversion.
However, take note that the most common commission rate these days would range from 50% up to a whooping 75% per sale. So what would you choose? Of course, I would look into this kind of affiliate programs.
PPL affiliate programs work the same way, although affiliates are paid a fixed fee whenever his referral converts into a lead for the company.
Two Tiered Programs. Nowadays it is very common to find some affiliate marketing programs that are two-tier programs. This set up allows the affiliate to recommend other affiliates to the merchant.
In effect, the affiliate would not only be paid for the traffic or sales that he would direct to the merchant’s site but also for the traffic or sales directed by the affiliates who signed up with the program through his recommendation. Seems a very good model, isn’t it?
Residual Affiliate Programs. Another method of making more money with affiliate marketing is through what they call as residual affiliate programs.
As the term implies, residual affiliate programs is where the affiliate gets paid a number of times for as long as the merchant keeps the customer the affiliate has referred to his site.
There are usually two forms under residual program. One form gets the affiliate paid a commission every time the referred customer purchases something on the merchant’s site.
The other form of residual affiliate program gets the affiliate paid a percentage every month for as long as the company keeps the referred customer.
With so many choices available and a lot of ways to make money, affiliate marketing is by far the most popular and the easiest way to make money online by simply selling other people’s products on the internet.
As to how much money you can make from affiliate marketing greatly depends on you as the affiliate. If you are dedicated and hardworking enough, you would certainly make more money from the program compared to those affiliates who would simply sign up and then forget or abandon the program after just a few tries or even not making any move at all.