Affiliate Marketing
The term Affiliate Marketing refers to the use of your website and the marketing techniques that you will learn on this web site to drive traffic to someone else's website with the agreement that they will pay you for your referrals.
Affiliate Marketing is one of the easiest and completely automated ways to generate income once you have created and advertised your business web site.
Affiliate Marketing does not require an initial investment, nor does it require you to stock an inventory of merchandise making it quite attractive for business owners on a tight budget. Once you sign up to be an affiliate marketer you have become one of the company’s sales team members. You get compensated by driving leads that eventually result in sales on someone else's web site.
When you have created your own business website you can target particular market areas related to your business and find affiliate programs that you can advertise on your web site thereby offering additional products related to your business.
Affiliate Program Compensation Models
A large majority of affiliate programs (approximately 80%) use Revenue Sharing also known as Cost Per Sale (CPS) to compensate affiliates. A smaller percentage of affiliate programs (approximately 20%) use Cost Per Action (CPA), Cost Per Click (CPC), Cost Per Impression (CPI), or Cost Per Mille (CPM).
- Revenue Sharing (CPS) involves paying affiliates a percentage of sales revenue that is generated by customer referrals.
- Cost Per Action (CPA) which is also referred to as Pay Per Action (PPA) involves payment by the advertiser once a particular action such as a purchase, submittal of a form, etc. occurs
- Cost Per Click (CPC) involves the payment that an advertiser pays to Search Engine companies and Internet publishers when a single click on an advertiser brings one visitor to a website.
- Pay Per Click (PPC) involves advertisers paying their hosts when an ad is clicked.
- Cost Per Impression (CPI) is the cost of a particular marketing campaign.
- Cost Per Mille (CPM) is the cost of a particular marketing campaign to 1000 people.
There are a variety of ways of locating affiliate programs on the Internet. The most effective way is to use a Search Engine and select appropriate keywords on the Internet:
- Search Affiliate Program Directories and get a list of affiliate programs on the Internet.
- Search Large Affiliate Networks on the Internet and get a list of some of the largest affiliate networks on the Internet.
- Search for Businesses Offering Affiliate Programs which are usually posted in the footer or About section of a website.
Businesses Offering Affiliate Programs
Commission Junction is one of the most popular affiliate programs because they can completely outsource the management of your affiliates and provide you with access to the large number affiliates already on their network.
LinkShare is another popular affiliate program that provides you with step-by-step instructions on how to create your affiliate program.
LinkProfits is another popular turnkey affiliate management solution that offers you a completely automated affiliate program.
ClickBank is another popular site that has thousands of affiliates and makes it easy to sign up new affiliates to your program. ClickBank also offers a bundled payment-processing solution.
1shoppingcart offers you a completely integrated solution from shopping cart to affiliate and also provides an easy way for visitors to your web site to join as an affiliate.
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