What Is Affiliate Marketing And How People Make Money From it?
August 22, 2009 by Shanker Bakshi
Filed under Make Money Online
Most of you familiar with two most famous ways of making money online:
- Making money with Blogging
- Making Money with affiliate marketing
Making money with blogging is not easy; it needs lot of hard work, horde of traffic and blog branding. I guess you are already familiar with the most common ways of making money with blogging that’s writing reviews, selling private ads, consulting and flipping blogs. Today we will discuss only about the other prominent form of making money online and that’s affiliate Marketing.
Make Money with Affiliate Marketing
Affiliate marketing has grown enormously in recent times, according to an estimate in year 2006 affiliate marketer earned whooping US$6.5 billion.
Affiliate marketing is a form of making money where one is rewarded with commission by a business merchant for promoting their products, services or sites. The one who promote products or services called affiliate marketer. It’s a kind of revenue sharing between an affiliate marketer and an online merchant. Like you can see I am promoting some products on this blog with my affiliate link, if someone click those affiliate links, landed to affiliate product site and buy that product then in return I get paid. The publishers will place advertisements in various forms like banner, text link ads on his websites to sell the merchant’s products or to send potential customers to the merchant’s website, all in exchange for a share of the profits.
There are three Price models in Affiliate Marketing:
Basically affiliate commission is based as percentage of sales amount. Eighty percent of affiliate programs work on this basis. Nineteen percent use cost per action, and the remaining programs use other methods such as cost per click. Here are the different price Models used by merchants for payment to affiliates.
- Pay Per Sale (PPS) Affiliates get paid every time a sale is made an amount as a percentage on sale, or commission, is deposited into the affiliate’s account.
- Pay Per Action (PPA) also known as Cost Per Action (CPA) is where the advertiser pays to affiliate for each pre-specified action. It can be a purchase, a form submission, email submission or any other action desired by the advertisement.
- Pay Per Click (PPC): Advertisers pay their affiliates when their ad is clicked. With search engines, affiliates typically bid on keyword phrases relevant to their target market. Cost Per Click (CPC) is the amount of money an advertiser pays search engines and other Internet publishers for a single click on advertisement that brings one visitor to its website.
Now try to illustrate affiliate marketing with the help of an image:
In the above picture you can see a customer land on a webpage of an affiliate, affiliate then try to send visitor to the merchant’s website through various affiliate links, product reviews or banners related to merchant’s products, if visitor follow any of those links and buy product/services affiliate gets commission as compensation.
E-mail Marketing
In fact you do not always need a website or blog to promote affiliate products. Most of the super affiliates use e-mail as marketing tool for sending bulk mails for promoting affiliate products. Aweber, MailChimp and Prosender are some of e-mail Email Marketing Campaign sites.
Affiliate Networks
Now the big question is where you can find affiliate products to promote through your website, blog or e-mail marketing. Well for this you need to register yourself with some affiliate network, an affiliate network acts as an intermediary between affiliates and merchant affiliate programs. It allows website publishers to more easily find and participate in affiliate programs which are suitable for their website.
I recommend following affiliate network where you can find hundred and thousands of products to promote on your website, blog or through e-Mail marketing.
So I guess you understand what affiliate marketing is and how people try to make huge money by promoting affiliate products. If you have any question or doubt you can ask it in comment below.
Loading ...
Affiliate marketing is a great way to make money online, but it does take some skill (obviously). I’ve had fair success with affiliate marketing, but I have also seen many people join, and quit within a few days. Why? Because they didn’t make money as fast as they thought they would. It takes time, as most bloggers/affiliate marketers now. Great post Shanker!
Reply
great post Shanker, but all people are not success in Affiliate marketing
Reply
Tech Buzz Reply:
August 26th, 2009 at 7:15 am
yes thats the thing. i too havent jumped into Affiliate marketing yet but soon am thinking to start a affiliate business
Reply
Nice info, I was waiting for your post on affiliate as you promised in one of your response to my comment.
Thanks for keeping your words, all of my doubts about affiliate are clear now, I wil try to join affiliate network and try my luck.
thanks
khalid
Reply
Work Hard And success is yours – Not guaranteed.
But yes, continuity with patience – Success maybe One day.
May be in 1 year or may be in 10 years.
The point – Work & Work.
Turn hobby-into-job.
World is full of opportunity & knowledge And each person is working hard with the best of their ability but success – The word is never a guarantee.
That is why : Work & Work with continuity & patience And forget money part.
If not, continue with job/work you do no matter you like it or not because most of the time money is important for survival. Hobbies later.
Reply
good lesson for beginner . i just review about t3leads which is one of the best affiliate site that use pure pay per lead program than i ever found
Reply
Me seriously looking earning some cash thru affiliate marketing. I think this mktng takes some time but proves solid when no of ur daily same visitrs increases rapidly
Reply
Atul Reply:
August 24th, 2009 at 7:53 am
sry forget to mention, AVG I have already subscribed too thru ur referral itself..now promoting on mine blog..Rest now going to check..hope any of it proves fruitful to me
Reply
(my name is being competed in your blog shanker)
Reply
Great guide for affiliate beginners
Reply
Thanks for the post. It’s very systematic and helped to clear many of my confusion towards affiliate marketing. I guess we need both smart working and patience.
Reply
Tech Buzz Reply:
August 26th, 2009 at 9:21 am
Patience is needed in every work .. whether it be Affiliate marketing or make money via blogging or any other work
Reply
The MailChimp sounds like a very good option for me, I decided to give it a try!
Reply
That was well & simply explained Shanker. It is similar to referrals getting rewarded in the regular business world.
Reply
Affiliate marketing is actually easier and bigger money than paid post. It just requires patience and dedication.
Reply
do you assist or help new bloggers on how to start affiliate marketing?
Reply
Shanker Bakshi Reply:
September 2nd, 2009 at 3:44 pm
Yes I do
Reply
Those bloggers who has high volume of visitors, must try to create their own brand and sell it through blog instead of promoting anyone else product for little money.
Reply
If you can make traffic, you can make money. The ultimate aim I have is to drive traffic to any blog because I know once ive done that I can make money, be it through setting up adsense or promoting some affiliate product.
Reply
Essays Reply:
September 3rd, 2009 at 8:29 pm
Yes, adsense or affiliation programs do make money. My point of view is that, you can make MORE MONEY by introducing your own product or service, for example, e-book on how to make money online.
Reply
I haven’t had any major success in affilite marketing. I guess I need more targeted traffic and also more skills in promoting the products!
Reply