Johnnie Skiles

How Does Affiliate Marketing Work?

The Internet has changed the way we do business, both culturally and personally. There are thousands of people looking for an opportunity daily to either have a side income or to replace their corporate jobs. There are many Mall’s shutting down because of the ease and popularity of internet stores.

Looking for a way to save money as well to make money. While there are many ways to make money on the Internet. The most popular and easier way to begin is with affiliate marketing. Save money is not necessarily the way to go. That does not mean spending your rent, going without food etc. if you need to save some from each paycheck to buy leads or sign up for a program.null

Affiliate marketing can be a sustainable and solid method. The affiliate delivers potential customers (known as leads or traffic) to the merchant and then the merchant pays a commission for the sale. Some merchants will actually pay you a commission for the leads you send to them. While the term affiliate marketing is not new, the business model has been around for generations.

An example of this is, Amazon which started an affiliate program in the mid-1990s, allowing a visitor that clicked a special link, then purchased a product, the affiliate, who was given a special link with their personal affiliate link, received a commission.

When social media (called Web 2.0) became popular, of near instant communication, commenting, blogging, and rating, affiliate marketing has grown massively, there are some top affiliates that earn hundreds of thousands per month to millions of dollars per year.

While the commission rates will vary, most affiliates will be compensated in the area of 25 to 70% for each sale, some do go higher. The higher the commission rate the more expensive the “back end” sales are. A back end sale is a high-end product such as a training session with a “Guru” or a training system. The compensation is based on either the number of clicks, leads, but in most cases an actual sale between the merchant and the new customer.

Affiliate marketing can be a very profitable business, particularly if done right. If it is not done right then obviously the affiliate will make little to no profit. If an affiliate marketer can drive enough traffic to the merchant's website, and if they can make the sales, they can potentially make a five to six-figure income each and every month. This is why thousands of people turn to the Internet daily, hoping they can make enough money to stop their 9-5 corporate job.

Benefits of becoming an affiliate marketer:

You do not have to build or program anything, the merchant will either develop the product and or provide the inventory that you are selling from their site.

There are no shipping costs; this is the responsibility of the merchant if dealing with a physical product. Customer support is provided by the merchant in most cases so you do not have to worry about customer support.

No limits to any number of products you can market, no long-term contracts, in most cases that you need to worry about. It would be in your best interest to NOT get involved in a contract. Depending on what your interests are, the focus of your website or what your niche is, you have tons of products to choose from. This is, of course, depending on the merchant site.

Many people will sale from multiple merchant sites. This may or may not be the best way of doing business. It depends on what you're capable of how much time you have to do the research to figure out what you want to sale. You will probably choose the higher end products that will pay you the highest commission. Again you may need to start with the lower cost items and build your “Brand”- reputation is key!

This alone could take hours per site, and the more sites you are selling from the more time it will take to get up and running. The only thing that is required is to establish a web presence and hosting. Set up costs are normally low if you are able to build your site yourself. Of course, if you're technically challenged then you will need to hire someone to build the site but probably maintain it for you. This will cut into whatever profits you make.

There are really no geographical limitations allowing an affiliate to market from anywhere in the world as long as they have an Internet connection. Coffee shops are a great source for internet connections or in a hotel or motel room.

As long as your products are in place and your website is running. Money can be made 24/7/365. Becoming an affiliate marketer can be profitable. If you're considering becoming an affiliate marketer, do research, choose the right product for your niche, then take the next step by putting your website online.

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