Affiliate Marketing may be defined as a revenue sharing between a website and an online merchant.
Merchant is a product owner, while an affiliate (publisher) is a person who promotes merchant’s products.
The website owner places advertisements on the website to either help sell merchant’s products or to send potential customers to the merchant’s website, all in exchange for a share of the profits.
When it comes to affiliate marketing system, as an online marketer, you can’t work without using one of them. These systems allow you, the marketer, to receive the money for your work.
The system is functional from the moment you sign a contract with an internet marketer with the condition that the employer agrees your type of system; there is internet marketer who only agrees one or two types of affiliate marketing systems.
The system that has been the most popular for a few years is the Pay Per Click system.
The affiliate marketer’s responsibility was to drive the internet traffic to the internet marketer’s website. Many affiliate marketers used to do this without taking into consideration that there has to be a customer target and most of the clicks ended up with no favorable result for the internet marketer because they didn’t turn into actual customers.
The affiliate marketer’s interest was to receive the commission for every click; the other aspects of the advertising were not important for him as they were for the internet marketer. It is the reason why this type of system is nowadays not as popular as it used to be.
Another affiliate marketing system is the Pay Per Sale. This is the most popular one between the internet marketers.
A special id is used by the advertiser for every internet user and if that internet user buys an item from the internet marketer you are working for, the advertiser receives the commission; there is no payment before the sale is signed.
It is a very difficult system because driving traffic to a website is one thing, while convincing people to purchase products from that website is another thing, a lot more difficult than the first one.
The Pay Per View system is gaining more and more fans; the system works in such a manner, that both the internet and the affiliate marketer get satisfied in the end.
The affiliate marketer will post a message, a banner, any visual advertisement to a certain number of internet users.
The affiliate marketer is happy because it is not very difficult to post such a banner and it permits him to post a big number of banner every day, as for the internet marketer, he is happy because the costs are not very high.
Advantages of affiliate marketing
Easy and simple to start
Most offline businesses owners need to devote almost all their time and savings to their new business venture if they want to make it successful and profitable. For affiliate marketing, there is no need for a large sum of money, or spending all your time.
You can start with literally no money and only use free websites and resources on the Internet. You can also devote as much or little time for building your business. For example, Mad Marketing Method requires only 4 hours per week to get started.
Of course, the more time and money you can invest in your business, the faster it grows. But you do not need to invest any more time or money on your affiliate marketing business than you feel comfortable with.
No special skill, license to start
A person who has access to the internet uses a computer, and can read and write in plain English can start earning money using affiliate marketing.
You do not need to be a genius or a computer wizard. You do not need a college degree or any formal education or certification. You do not need permission from a government, membership to a professional organization, or anything like that.
Creates total financial freedom
Affiliate Marketing is the ultimate portable business that gives you total financial freedom. Whether you are using free marketing methods or paid marketing methods, you are setting up systems that create consistent traffic and sales to the products you promote.
And these systems do not require your constant attention once they are set up. So you generate passive income. Income that flows to you whether you actively work or not, like rental income or pensions.
You can work as hard or as little you want, and know that the work you do today will create lifetime income for you. So you only work to increase your income.
Yes, affiliate marketing will allow you earn quickly, but that doesn’t mean it’s an overnight process. You will have to choose a good product; stick to it with patience; not to mention you need the smarts to promote your product well.
But given these three things, you should start seeing rises in your bank balance within seven days or less!
Affiliate marketing can help small and medium enterprises to increase their sales among other advantages without necessarily having huge promotional budgets hence is often sought out by such businesses.