A Primer on Affiliate Marketing.

Affiliate marketing is an Internet based system involving three primary players. These are the retailer or company; the affiliate or associate; and the customer or visitor. The retailer rewards its affiliates for sales generated by them. This is usually accomplished by using the affiliate website to drive traffic to the company site. Typically, the company will provide a banner ad for the affiliate to place on his own site. The advertisement, featuring the products or services of the retailer or company, contains a link to the company site. Visitors to an affiliate site click on the ad and are redirected to the company site, where they can make a purchase, thus generating a commission for the affiliate.

Affiliate marketing is a form of advertising, but not a stand-alone method. Instead, other Internet marketing techniques are used to drive traffic affiliate sites. The most common methods used are emails, search engines, and articles in praise of the services or products offered by the company.

Affiliate plans are used most often by certain types of companies. Online stores and casinos are common participants, as are travel sites and cell phone companies. Another growing field is the one offering services or products related to the Internet, such as software for developing websites and web hosts.

Compensation is typically based on one of three methods. The most popular is where an affiliate receives a percentage of sales. A few pay a set rate whenever a specified action occurs, which can be a sale, an opt-in newsletter, or any other action the retailer chooses. Fewer than one out of a hundred use a compensation method that rewards affiliates just for getting their visitors to click on the ad.

Because affiliates normally do not make money unless the retailer can make the sale, two factors should be considered when selecting a retailer to promote. First, a professional company website that is easy to negotiate and properly maintained is essential. Prices should be competitive, and the service or products of value to most visitors. Second, affiliates will make the most money if they can match their visitors with a site offering something of interest to them. The tastes of your visitors should be considered when deciding on a company to host.

Some programs pay tiered commissions. This is similar to multilevel marketing, but is not as extensive. For example, if an affiliate is responsible for another site registering as an affiliate of the same company, he can receive a commission on both his own sales and those of the other affiliate.

In some instances, affiliates try to drive traffic to a site where the visitor can select from a number of different offers. Usually, he receives an email urging him to register for a free gift card or other bonus. At the site, different companies make their pitches, and if he accepts a certain number of their offers, he is entered in a drawing for the gift card.

Affiliate marketing does not create overnight millionaires, but it has become a substantial source of revenue for many sites. Some affiliates even create websites for the sole purpose of hosting the ads for the companies they select. For anyone who can tie a web presence to a company, they are a viable method of generating extra income.

Check out all you need to know about affiliate marketing. Including the best affiliate programs that can lead to success and money. Jump online and read up on these offers today.

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