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What Is Affiliate Marketing

What Is Affiliate Marketing
Copyright © Craig Warren
http://www.fastcashfromhome.org

Affiliate marketing has many descriptions, yet all have
the same meaning. Affiliate marketing is a huge business
piece on the Internet. It is a cooperative effort between
merchants and an affiliates website. For many years now,
affiliate marketing has proved to be a cost-efficient,
measurable method of delivering long-tern results. It has
become famous for Internet sites who are trying to make
some extra or additional income for their site. Every day,
people get interested to affiliate marketing and want to
make money out of it. But in many cases, these new
affiliates do not fully understand the affiliate world
and make costly mistakes. In other words, affiliate
marketing has often been misunderstood.

One of the common misconceptions that are being
associated about affiliate marketing is selling, though
selling is an important activity of affiliate marketing
and the central function of a business operation.
Another is that affiliate marketing is commonly linked
with advertising. While the importance of advertising in
marketing a certain product is not to be underestimated,
the fact of the matter is, advertising like selling, is
merely a part of the many functions of marketing.

In affiliate marketing, an affiliate is compensated for every
visitor, subscriber and/or customer provided through his
efforts. The said compensation may be made based on a
certain value for each visit. The most attractive aspect of
affiliate marketing from the merchants viewpoint is that no
payment is due to an affiliate until results are appreciated.

Affiliate marketing is typically being run by affiliate
networks and this affiliate networks are composed of two
functional bodies, the group affiliates and the group
merchants. Each has their special function and role when
it comes to affiliate marketing. The affiliate network
acts as a third-party between the merchant and the
associated affiliates. The network provides the technology
to deliver the merchants campaigns and offers. The affiliate
network also collects commission fees from the merchant
and then pays the affiliates which are part of the program.

The merchant is any web site owner that wants or desires to
take advantage of performance based marketing. The benefits
to the merchant are many. First, the merchant maintains and
operates the affiliate program. If it would be extracted,
the merchant needs to do their part by researching interested
affiliate websites to ensure that they are a good fit for that
particular website. Finding a fit for their merchandise would
be the key to more generated income. The merchant has
access to markets and customers without him spending
valuable time searching out. Banner ads on affiliate sites are
not distracting to the site user. It might produce interest for
that product and drive the consumer to the merchants website.
It is also the merchant who decides how much he is willing to
pay for each sale that results from a visitor sent from an
affiliate.

The affiliate or the affiliate marketer also sees a lot of
benefits. The affiliate is a web site owner that promotes one or
more merchants and their affiliate programs. Affiliate marketing
can generate a full-time income for the affiliate. But this is
not an easy task to accomplish. The affiliate needs to have a
better understanding with the merchant what the commission
will be, expected payment method and time involved in the
contract. The affiliate has also the responsibility to stand for
the merchandise their user based would be most interested in.
For example, if the site has a user base of mainly stay-at-home
mothers, then on-line job openings such as surveys would be a
good match for them. This group would also appreciate direct
links to children’s products and informational sites.
Merchandisers often provide targeted, best-seller items and
personal support to their affiliate. They often offer sales
promotions that will benefit the merchandiser as well as the
affiliate.

Affiliate marketing is a great situation for both the marketer
and the affiliate. If they would work together, they can be an
advantage to both. Plus the fact that it seems to make sense,
it is easy and inexpensive way to start and you can be up and
running within a few days. But there is one thing to consider,
it is how to get traffic and make your offer different from all
others.

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