What is affiliate marketing?
After yesterday’s post on How to be Successful in Affiliate Marketing I received a number of emails asking What is Affiliate Marketing?
The best way to describe affiliate marketing is that you’re selling other people’s products. Much of affiliate marketing is done online nowadays.
For example, I recently took a Forex Trading Course as I had always been interested in learning more about day trading, I became an instant fan and can’t speak highly enough of the course I took. The company that offered the course, Currency Connect, happens to have an affiliate program. Here is how it works, I get access to a special area on a website, called an affiliate login. I pick a user id, password, provide some information like my email and shortly thereafter I’m set up with an affiliate account that gives me access to links, banners, and emails that help me promote the company. Here is an example of an affiliate link:
http://www.currencyconnect.net
and here is another for the Life-Changing Workshop:
http://www.holodynamicsforabetterworld.com
As you can see the links look like most normal links, and often banners are supplied as well, like this one:
These links have a unique identifier that is used to track who clicked your link, and when they make a purchase, you get credited with the sale and receive a commission, which usually is a percentage that’s anywhere from 10 to 20%. The unique identifier can usually be seen when the link is clicked, for example https://www.sendoutcards.com/41238 (41238 is my unique identifier here).
Often the affiliate program will have a facility for you to send emails or you’ll get emails you can forward on. Here’s an example of a short and sweet email:
Dear friend,
I came across this great event I thought you’d be interested in, The Life-Changing Workshop, it’s on November 28th at the Fairmont Waterfront Hotel in Vancouver. Here is the link, have a look.
ttp://www.holodynamicsforabetterworld.com
— end of email —
So in a nutshell, you sign up, you get links, banners that you can forward on to your friends and family. When someone signs up, you get a commission, and a cheque is mailed to you.
In recent years affiliate marketing has taken on an entirely new level. You’ll find there are some “affiliate marketers” that market other peoples products and services full-time. A home-based business that requires just a computer and internet access. In addition some affiliate marketers build websites and use search engine optimization and google adwords and pay per click to drive traffic to their site. It gets pretty complex. For the average person, affiliate marketing is a great way to make a few extra bucks promoting the products and services you believe in.
For small business owners affiliate marketing can be a very profitable marketing strategy that fills you sales-funnel with new leads. And all it takes is an affiliate program and some web technology to make it happen and track commissions. Clickbank and other web services exist to simplify the affiliate process, making it even easier for businesses to jump on the affiliate band wagon.
Affiliate Marketing Explained – Video:
What is the difference between affiliate marketing and referral marketing?
Affiliate and referral programs are quite similar. The main differences are usually that referral programs pay a flat fee or offer a lower commission and rely on word of mouth, handing out business cards, flyers, and tickets with referral codes. An affiliate program is either a step up from a referral program, giving bigger percentages an formalizing the agreement in writing or it’s done electronically on the net with affiliate links, banners, and emails that make it easy for just about anyone to promote your products and services. Referral programs are usually for clients, family, and friends, while affiliate programs can be for anyone to sign up.
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