Affiliate marketing is all about earning a living online (making money) by promoting another company’s product for a commission of every sale you generate. Anyone who promotes a product in such manner is known as an affiliate or sometimes partners or associates. Most affiliates promote products through their email list or website, but you are not restricted to these methods:
Basically, you can put a website address anywhere or a hyperlink can also be turned in a promotional vehicle, your imagination is the only limit. Affiliates are known for regular people looking to earn some more cash from their websites or individuals longing for a serious work at home business that can be performed from any part of the work, with serious earning potential.
When we are talking about affiliate marketing, we are actually talking about a bunch of things.
1. Social networking and “web 2.0” strategies
2. Search engine optimization example getting your website ranking well in the search engines
3. Pay-per-click marketing
4. Getting motivated, staying motivated and avoiding potential mishaps
5. Finding good products to promote
6. Email marketing
7. Earning money by displaying ads on your site i.e. Google AdSense
8. Creative ways to promote your products
9. Creating or sourcing content for your newsletter or website
10. Conducting market research
11. Building websites
Affiliate marketing with other Internet marketing methods overlaps to some degree, due to the fact that affiliates mostly use regular advertising methods which include paid search engine marketing (PPC – Pay Per Click), organic search engine optimization (SEO), e-mail marketing, content marketing and display advertising. On the other hand, affiliates sometimes use a smaller amount orthodox technique, such as publishing reviews of services and products offered by a partner.
Affiliate marketing is mostly confused with referral marketing, as both type of marketing use third parties to make sales to the retailer. However, both are diverse forms of marketing and the main distinction between them is that affiliate marketing relies merely on financial motivations to boost sales while referral marketing relies on personal relationships and trust to boost sales. Affiliate marketing is regularly overlooked by advertisers. While search engines, website and e-mail syndication capture much of the interest of online retailers, affiliate marketing carries lesser profile. Still, affiliates keep on playing a significant role in marketing strategies of e-retailers.
How affiliate marketing works
Knowing what ads to place and what revenue your Web site generates isn’t magic. Once you join an affiliate program you then are able to choose the products or banners you want to include on your Web site, and then receive the code you will need to insert on specific Web page or throughout your Web site.
This changes, however, when you select an ad revenue partnership, such as Google AdSense, for example where you have little or no control over the advertisement displayed. In joining the affiliate program, you will agree to their terms of service, called an affiliate agreement, which will tell you what requirements you must meet and how the click-through, lead generation or sales are tracked.
Here is an example of one affiliate program, how it works and the requirements of the affiliate:
WorldWinner is a “Pay to Play” online game Web site that offers a revenue-sharing affiliate program. From the WorldWinner Web site (the advertiser in this case), you would first fill out an application to become an affiliate by providing basic information about yourself and your Web site through a Web-based sign up form.
If you’re accepted as an affiliate, WorldWinner will provide you with an affiliate ID as well as the address to a Web page where you can generate the code to place different links advertising WorldWinner on your own site. They offer rotating or static text links, banners or buttons, and co-brand Web sites are also allowed. When you generate the code to place on your own Web site, it will contain your unique affiliate ID. Any user who clicks a link to WorldWinner that contains your ID is tracked by WorldWinner via cookies.
If they become a paying player and deposit money to their account and play games for cash, you then earn money yourself; it will be a percentage of that user’s deposits for as long as you remain an affiliate (this particular affiliate program offers a 25 percent share in Net Applicable Revenue). WorldWinner also hosts and provides you with all the statistics and information you need to determine how many users your are sending to their Web site, if they are depositing funds, and also provide you with your revenue and payout information.