Affiliate Marketing Defined!

Affiliate marketing is an internet-based form method of marketing involving three3 partiespersons:

1. A merchant/product seller
2. An affiliate of the merchant
3. The customerconsumer

The rolepurpose of the affiliate marketer is to act as ‘middle man’‘a conduit’ between the customer and the merchant by ‘preselling’‘advanced selling’ that potential customer on the merchant’s productservice before referringsending himher to the merchant’s web site.   Affiliate marketing can also be vieweddefined as a formmethod of advertising and webinternet traffic generation. (Remember, traffic means sales!  The more traffic you getreceive, the more salespayout you get.)  Typically, the affiliate uses his own (or another) web site in order to drive traffic to the merchant’s web site.

So, what’s the benefitreward in all of this to the affiliate? Well let me explain!

Affiliates get paid commissionsa percentage for their referrals. Any time an affiliate sends a paying customer through his affiliate link, he earns a commission in the form of a percentage of the sale.

Let’s say you referred a customer to a merchant’s web site and that customer purchased a $200 product on which you earn a 50% commission per sale. You would make a profit of $100, plus or minus any expenses you laid outpaid on advertising or setting up your website.  (This is just an oversimplified example.  Commission percentages vary based on the merchant.)

Does affiliate marketing benefit the consumer or customer?   Some people dislikehate the ideasubject of affiliate marketing because they don’t likecare for the idea of a strangersomeone else earning a profitcommission off the purchase. However, when done correctlyin the right way, affiliate marketing benefits the customer in severalnumerous ways and the affiliate’s commission is well deserved.

1. An affiliate cancouldintroduce a potential customerconsumer to solutionsanswers he might not have discoveredfound on his own.
2. The affiliate often provides an extraadditional layer of information to the potentialnew customer, which helps easefacilitate the buying process.
3. Some affiliates are able to work out exclusive dealspartnerships with their affiliated merchants, allowing them to pass discounts along to their customers. (This might even include discounts above what is advertised on the merchants’ web site!)

The most important thing to know about affiliate marketing is that it can form the basisgenesis of a very rewardingproductive and successful home based internet business.  So, if you like the idea of becoming an affiliate, continue to exploreinvestigate the subject. Start looking for opportunities in areas that you have an interest in.  For starters, open an account and spend some time at Clickbank.com.  It just might be the business opportunity which will start you of right in your internet business!  Good luck!

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