Understanding the Basic Principles and the Advantages of Affiliate Marketing

Understanding Affiliate Marketing

Affiliate Marketing is a online phrase used to describe the promotion of internet businesses by the channel of affiliate programs and the marketing of these products on websites and it dates back to the mid 90’s.By doing this the vendor compensates the affiliate (also known as the publisher) a approved percentage of commission based on the amount of trade their website brings the merchant company.

Some companies such as Clickbank, Paydotcom and Shareasale typically have set percentage rates for affiliates which can be up to 75% for some products. Some consider affiliate marketing to be a form of revenue sharing or another term regularly used is commission based advertising.

In the early days of  “affiliate marketing”, it was associated as another structure of network marketing or multi-level marketing (MLM) and as a result of this misconception allot of online businesses made the decision to use the expression “performance marketing” to steer clear of any relation to affiliate marketing. This also created a large problem for affiliates in the past,  as many online users  had a propensity to frown on whatever thing that even looked like multi-level marketing.

Over time and with a great deal of determination from those that are now established as super affiliates it has turned out to be the most cost effective way for merchants to market their products or services online as it is very efficient in the fact that the affiliate has to do all the work to make the sale. So as a result of this, many online companies especially those that embraced this form of marketing in the beginning owe a tremendous amount to affiliate marketing as a perfect example just take a look at amazon.com and the way it has become the done thing  for online companies to include affiliate marketing in many of their online strategies to promote their products.

The Advantages Of Affiliate Marketing

The model of revenue sharing has been around for some time, allot longer than online business and the internet. But the idea of affiliate marketing has taken it to new levels, and become a primary form of advertising and bringing in business for all types of e-commerce. Internet merchants find affiliate marketing highly advantageous due to the fact that it presents little to no risk both for the merchant and the ‘affiliate”.

Here is how it all works, the affiliate will earn money if the affiliate brings to the merchants website, either through on-line links on the affiliates website – or through email, blogs, RSS feeds and many other kinds of on-line communication that are available to the affiliate. If a sale is made or the desired action is accomplished then the affiliate will earn a designated commission payment from the vendor or affiliate network.

Some merchants (only about 1% of affiliate marketing) use a cost-per-click remuneration system but this is now starting to grow as a viable form of money generation from main stream affiliates by using the CPA marketing networks, which simply means that the affiliate earns some form of commission every time a website visitor clicks on an advert on their site or when you send out  an email with a affiliate link.

However in the past and mainly due to the many “blackhatters”and fraudsters online that were taking advantage of this method by way of creating such things as (ad-ware, sending spam, or keyword heavy and useless indexing sites) this form of remuneration is now allot more regulated and even to the extent of having IP addresses tracked and accounts canceled if you are generating what is considered as fraudulent clicks and for many in the past this form of advertising had become too risky for merchants to use.

What Are The Distinctive Forms Of Affiliate Marketing

There are a few different ways that an affiliate can earn commissions online. Firstly you need to decide which of these is right for you and then join the merchant affiliate program this is so any payment can be received through any referrals from your website to the merchant, Here are four methods that are currently used online today, however you need to read the terms and conditions of each affiliate program you wish to join.

  1. Pay Per Click Marketing is simply a strategy that affiliates use where they display advertisements on their affiliate site and they are then paid when a customer clicks on that website advertisement whether it is a text link or image link.
  2. Emailing your subscriber lists  sending legit emails to your website opt-ins with your affiliate link embedded “Spam Is Not Tolerated” make sure you study the TOS of the affiliate program before doing this.
  3. CPA Affiliate Marketing  is when one of your  website visitors registers with a specific site whether this is a free newsletter or subscription, free offers from other companies are represented and advertised through this form of marketing as well.
  4. Clickbank, Shareasle, Paydotcom are all affiliate marketing networks they have many thousands of products or services for you to choose from as well as being free to join. Some programs even allow multi-tier or what is called a recurring payment structure set up.

Hopefully our article has helped you to understand more about affiliate marketing and we would like to wish you well in all of your undertakings online.

Affiliate Marketing VS Product Creation

This is a huge obstacle many people face when entering the online marketing world: Should I become an affiliate marketer or should I create and sell my own product..?
Before I get started let me quickly define the two business models so that we are clear as to how money is generated with each.

• Affiliate Marketing: In this business model you will be making income by referring customers to another person’s product or service. So basically you will sign up with the vendor as an affiliate and for every sale you generate you get paid a commission.

• Product Creation: This business model is pretty self explanatory; you will be creating a product and selling it in the marketplace for 100% of the profits. In this example we will be assuming your product is an information product of some sort.

There are a lot of marketers that will say the easiest way to start making money online is affiliate marketing. Just because of the simple fact that you can choose a vendor whose product you want to promote, sign up as an affiliate, start sending traffic to your affiliate sales page and BOOM! You make money. Sounds pretty easy. You don’t have to deal with creating a product, setting up websites, dealing with customers, etc.

At the same time there are marketers that say creating your own product is easier and the more profitable of the two and allow you to be more in control of your business.
It really all depends on what your strengths and weaknesses are and what you’re looking to accomplish in your business.

Let me get some of the pros and cons of each and put things into perspective so you can have a better idea of where you want to get started.

Affiliate Marketing

It is a strong argument that affiliate marketing is the easier of the two to start with which is why it is recommended as a starting point for beginners.
Here are a few of the pros of affiliate marketing:

• Most affiliate vendors/networks are free and very easy to join. Most of the time you will answer a few basic questions, set up a username and password and get instant access to the affiliate member’s area within a few minutes.

• Marketing materials are provided. Once you set up your profile in the affiliate member’s area you will have complete access to all marketing materials needed to get you going such as banners, pre-written emails, etc. In the members area you will also be provided a unique affiliate link which will take your prospects to a complete sales page which has already been created for you. Armed with these materials all you have to focus on is getting traffic to your affiliate site.

• All websites are already created for you. As an affiliate you do not have to deal with the headaches that can come with setting up a website. The vendor has done this for you and as long as you use your affiliate link your sales and commissions will be tracked through that link and paid into your account.

• Do not have to deal with customers. We all know how difficult it can be to deal with customers but as an affiliate you do not have to worry about this problem. Once you make a sale as an affiliate all you have to worry about is cashing your check and the customer is passed on to the vendor.

As you can see being an affiliate marketer definitely has its perks. It’s quick and easy to join a vendor/network, all the marketing materials and sales pages are provided and you do not have to deal with customers. You can focus your time on generating traffic, making sales and cashing checks!

Now let’s take a look at some of the cons of affiliate marketing and how you can overcome them.

• The competition. Even though it can argued that affiliate marketing is the easiest way to make money online it can be strongly argued that it’s the most difficult due to the competition. There are hundreds of thousands of affiliate marketers you have to compete with to make a sale. At the same time many experienced marketers agree that most new affiliate marketers do not know what they’re doing since it’s such an easy business to get into.

– One of the best ways to overcome this obstacle is to educate yourself. Always be a step ahead of the competition by learning what the top affiliates are doing to give them that edge needed to make the sale.

• Profit Margins. As I mentioned before with affiliate marketing you are making a commission for referring a customer to a vendor as opposed to you being the creator of the product and earning 100% of the sale. So there can be a lot of profits you are leaving on the table by promoting someone else’s product instead of your own.

– This obstacle is really not in your control when it comes to affiliate marketing but the best thing you can do is promote a product with a higher payout of 60-80% as opposed to 25-50%. This way you will be making more income with less sales.

• Building someone else’s business. As an affiliate not only are you generating sales and profits for the vendor you are also helping them build their business instead of your own. Once you make a sale and are paid a commission that customer is now in the hands of the vendor which can continue to sell additional products and services to that customer for the lifetime of their relationship.

– The best way I know of building your own business through affiliate marketing while also sending customers to the vendor is to set up a landing page of your own that requires the prospect to input their name and email before they get access to the sales page. This way the prospect is on your customer list as well and you can now email them future offers and affiliate products directly. Now of course you will have to provide an incentive to the prospect for them to enter their email like giving away a free report, video training, audio file, etc. We will touch on this in a future report.

• Lack of control. With affiliate marketing you really don’t have much control of anything but generating sales. Should the vendor/network decide to shut down or no longer sell the product you are promoting you are left back at square one. When it comes to product creation you have a lot more control of your business and can profits but we’ll be touching on that in a few.

– Unfortunately this is a huge downside to affiliate marketing and something you really can’t prepare for. Building your email list as mentioned before is the best way to ensure that you still have an ability to make sales with your current list of customers while you set up a new campaign with a new product.

There are just as many cons as pros with affiliate marketing but none of these reasons should stop you from getting started if it’s a business you wish to pursue. One important thing that you want to keep in mind is to take time to invest in your education and skill sets to put yourself ahead of the curve. By doing this you set yourself apart from the competition and a step ahead to making the sale.

If you are interested in learning more about affiliate marketing and jump starting your way to success visit my author resource box.

Now, just for a second picture yourself being the product creator and having an army of affiliates promoting your products as we move into the pros and cons of Creating and selling your own product.

Product Creation

Product creation can be a scary subject for many because as a newbie you are most likely skeptical and completely in the dark as to how an online business operates, let alone creating a product from scratch. But to your surprise it can actually be one of the easiest ways to make money online.
Let’s get into some of the pros of creating and selling your own product and see why it can be an avenue you consider:

• Control. When it comes to product creation you are in complete control of just about everything. You are in control of how you market your product, the price, its delivery, and you are in full control of every customer you bring into your business as well as any future purchases they make from you.

• Profits. Of course this is a huge reason why many people create and sell their own products. As a product creator you get to keep 100% of the profits from every sale you make. Now there is an exception to this when it comes to setting up your own affiliate program and having other affiliates promote your products but we’ll touch on the power of this next.

• Affiliates. Once you create your unique product you can choose to leverage others to help build your business. Setting up an affiliate program can be a powerful way to explode your business on autopilot. You can offer your affiliates a commission of 30-50% and have them sell their butts off for you especially if your product brings high value to the marketplace. Also you can make money while you sleep as you know your affiliates are working hard to make you sales.

• Building a Brand. Being the product creator gives you the opportunity to build a brand for yourself in the marketplace of your chosen topic. Since your product is unique you are able to name the product whatever you like and build a brand around that topic. This is very big if you want to build your business through word-of-mouth advertising which we all know is the strongest form of advertising.

As you can see there are also some great advantages to creating and selling your own product. You are in full control of everything, you will earn more money, you can build an army of affiliates, and you can build a brand for yourself and your business. But as in everything there is a downside so let’s get into that next.

Here are a few cons of product creation and how you can overcome them:

• Time. When it comes to your time, creating your own product will definitely take up more of your time then simply signing up as an affiliate. Not only will it take time to create your product, but you also have to create a website to sell your product from. And that can be a headache of its own which we will talk about next.

– The great thing about product creation is you can outsource just about every process involved in starting your business. You can literally pay a professional writer to write your information product for you and you take the credit for it. Of course you always want to proof read it and modify a bit to fit your personality and style.

• Websites. Once your product is completed you will not be able to make any profit unless you are able to get it published online. For some this can be your worst nightmare. This can cause you a lot of headaches especially if you are not tech savvy. This can easily cause you to quit or never begin to try to make money online, or it can cause you to have to hire a web designer to build a site for you which can be a few hundred to a few thousand dollars in cost. This leads me to my next topic.

– Again building a website can easily be outsourced to a web designer who can build you a clean professional website usually within 48-72 hours.

• Cost. When it comes to creating a product it can easily be said you will have more start up costs then an affiliate. When it comes to setting up your sales funnel you have certain costs like buying a domain, hosting your website, hiring a web designer to set up you site unless you’re doing it yourself, paying for the graphics to brand your product, etc.

– A lot of you may be asking yourself how much are you going to expect to spend on your product creation business? Don’t worry take a deep breath..a lot of the things you will be paying for are really inexpensive. You can buy a domain for about $10 and hosting is about $5 a month. Now I want to introduce you to a site that will dramatically change the way you do business it’s called http://www.Fiverr.com. This is a community of people that are willing to just about anything for $5. Go ahead and visit the site and see for yourself. You can literally have an information product created on a topic of your choice, the graphics and ebook cover created, and a website build for $25-$30.

• Customer Support. As the product owner you will be responsible for your customer service and support and this alone can drive you insane and drain a lot of your time and energy. As in any business on or offline you will have your happy customers and your not so happy customers. Your customers will have questions, demands, concerns, etc and it is your responsibility to make sure they get the support they deserve.

– Customer support can also be outsourced but unfortunately this comes with the territory of any business and something you will have to deal with. Yes you can have someone take care of your customers service but you should definitely be as involved as possible to make sure they are getting the best support possible.

As you can see as a product owner, yes you will be in control, yes you will make more money, and yes you can build a brand, but with all this comes a lot more responsibility then an affiliate marketer.
Before wrapping things up lets touch on a few things that we can all agree on in both affiliate marketing and product creation.

• Work from home. Whether you are an affiliate marketer or promoting your own products both allow you to be in control of your time and work from home. For many this a highly sought after luxury to be able to spend more time with family, friends, spouse, etc.

• Your day job. Unless you are a super marketer and were born with super online business skills most of you will still be working your day job as you build your online business. With that said you can build your online business on a part-time or full-time basis around your current work schedule whether it is one hour a day or ten hours a day whatever it is that works for you make sure you keep it consistent. Make sure you schedule your online business time just as you would schedule any other activity and make this non-negotiable.

• You’re the boss. No matter if you’re marketing as an affiliate or your own product, you are your own boss in both situations and your income is directly influenced by your efforts. This also allows you to make money on demand. If you’re looking to take a vacation or buy a new car and you need a few thousand dollars you can just jump on your computer and set up a new marketing campaign.

If you are leaning more towards creating your own products visit my author resource box.

In conclusion there really is no right or wrong, better or worse, that was not the point of this article. The point of this report was to shed some light on both business models so that you can be more aware of what you can expect in moving forward with your online business. In my opinion there shouldn’t have to be a choice between affiliate marketing and creating your own product. You should integrate both into your business plan and become educated in both arenas. By doing that you will quickly see that many top affiliate marketers make a killing selling their own products and many people who sell their own products make a killing as affiliate marketers.

One thing I do want to stress is no matter what you do it is going to take time, effort and hard work. Don’t fall into the trap that many newbie’s do which is consistently searching for the next plug and play system that is going to make you the next overnight millionaire. And there are plenty of “Guru’s” out there who prey on the newbie community and put out junk products promising overnight millions with pretty sales pages and you continue to fall for them. STOP!! Map out a business plan, decide what you want to accomplish, find one reputable mentor you want to follow and get to work! Focus on following that chosen mentor all the way through to your first online dollar. Lastly, make a promise to yourself that you will not quit before starting the journey!

To Your Success,

Joshua Zamora

What is Affiliate Marketing Or an Affiliate Site?

Affiliate Marketing Secrets

Today, we can easily create own web site. As long as you have a Computer Access Internet, You will be able to access sites such as Google, using them to provide web site design templates to create a simple personal website. The website will assign you a Uniform Resource Locator (URL) to store the content on your page, while also adding some of these sites want to advertise advertising. In this way, only one or two hours of your pages on the Internet in!

But how to make your site to achieve more function? How to use it profitable traffic to your site? If you are an online affiliate, how do you attract people to your site to buy things? A can simultaneously satisfy the above two kinds of needs and is quite popular method is to Affiliate Marketing (Affiliate Program). This article will introduce what is affiliate marketing, affiliate marketing principles apply to the object and how to use
affiliate marketing to make your site benefit from.

What is Affiliate Marketing or Affiliate Site?

Affiliate marketing is also called Affiliate Marketing Network (Associate Program), the Affiliate Web site (Online Merchant Web Site) and the affiliated Web site (Affiliate Web Site) an agreement reached between. Stipulated in the agreement, the latter providing the former users, the former to the latter to pay a commission for this. The affiliated sites to place links to business sites, and in accordance with the two sides agreed to receive advertising in return for payment of fees. Returns are generally disbursed in accordance with the adoption Affiliates (Affiliate) sites the number of visitors into the affiliate Web site or a purchase or other acts of the number of customers to be calculated.

Some are also in accordance with the affiliated Web site to access the affiliate Web site banner ads (Banner Ad) to calculate the number of people. Basically, as long as the affiliate merchant site members can give to bring passenger flow or earnings, business web site, which will be in accordance with agreement between the parties to pay a certain remuneration. The recruitment of affiliates (Recruiting Affiliate) is not only a good way to conduct online sales, but also is a cheap and efficient marketing strategy. In addition, it is a good choice of site promotion.

Affiliate marketing, at least the following three:
* Customer
* Affiliated sites
* Merchant Website

In 1996, Amazon (Amazon.com), CEO and founder JeffBezos (Jeff Bezos) to make affiliate marketing as a network marketing strategy to spread open. Amazon On-line commitment, in accordance with referral and affiliate sites to purchase books or other commodities, the number of profit-sharing commission, in order to attract affiliate website point to Amazon books for sale online, or link. The affiliated sites help only sold by Amazon’s other things to do online, including: taking orders, collection, shipped to customers. The results of this strategy victory need more than 500,000 Web site to join them.

Currently, affiliate marketing has been an increasing number of website used by a variety of forms. For many none core E-business the websites to become an affiliate member is engaged in a good way of e-commerce.

Affiliate Program, paid model

Affiliate marketing there are three models of payment:

* Pay according to sales (Based on sales to pay): Amazon’s online affiliate marketing program that is paid by sales of a typical example. In such a pay model, only when a customer through the affiliate link to visit the merchant web site members and produce the actual purchase, the affiliate Web site will pay to affiliates. Some merchants, like Amazon, the same line, according to a certain percentage of sales paid; there are also some merchants for each product sold will be paid a certain amount.

* Pay-per-click (The amount of pay-per-click): In this payment model, the affiliate Web site under the affiliate website and click on the link to point to the number of visitors to the affiliate membership fee. Visitors do not need to buy any commodity, but also from affiliate sites log on to the affiliate website and conduct after the act has nothing to do with the Member Web site.

* According to the number of pay-to guide (According to guide the number of payments): Click here to pay-mode operation of the business according to the completion of guidance (i.e., fills out and submits a form) the number of visitors to the affiliate membership fee. This means that the completion of a affiliate site requires visitors to fill out the information, which information can be used as a affiliate Web site sales leads, or as sales leads to sell other companies.

There are also some other payment model. Basically, the affiliate marketing program, merchants will select their best behavior as a basis for payment, and then transfer to their affiliate sites the occurrence of this behavior, the number of clients paid to affiliated members.

Several basic pay in the above model, derived from some other more prevailing payment mode:
* Two-tier affiliate program(Two-Tier Program): two-tier affiliate program structure and Amway, Avon and other companies used in multi-layer direct marketing (also known as “network marketing”, is a development on behalf of salespeople and commissioned salespeople sell and profit from marketing) is similar to the organizational structure. In this payment model, affiliate membership is not only the sales from its Web site, click on or get a commission to guide behavior, but also its development, and point to cascade under the affiliate Web site is a member of sales, clicks or get a commission to guide behavior.

* The residual income affiliate program(Residual Program): This affiliate program provided that if the members from the affiliate web site visitors to enter the affiliate Web site to purchase products at the affiliate Web site or services, a continuous, affiliate members can thus continues to be a commission. Many customers get from regular income (such as monthly service fee charged) of online merchants to use more of this affiliate program.

In addition, there are a few shows by the number of affiliate programs pay. The implementation of these programs (also known as pay-per-view program of visits) companies only in view of its banner ads the visitors visits to the Member to pay a commission. This pattern often does not fully equipped with the structure of affiliate marketing, just as a traditional advertising and marketing to operate. Compared with traditional advertising, affiliate network marketing advantage only when an affiliate member of the business produced the desired results, the merchant fees are allowed.

While the advertisers, the traditional advertising (for example, that you see on television advertising and a number of banner ads on the Internet) and risk is relatively larger. Because in the traditional advertising model, they do the ads cost effectiveness is uncertain. If your ad is greater than the benefits to the company advertising costs, advertising even if successful; but if the benefits of advertising than advertising costs, the company can only resign to fate. In affiliate marketing, online business is only valid when paid in the ad. Thus, significantly reduced the risk of advertisers. It is precisely because of this, one would like to contract for advertising sites, in order to join affiliate marketing is far more direct way of advertising is much easier to find advertisers.

How to manage affiliate marketing or affiliate software?

Conceptually speaking, affiliate marketing, it seems quite simple; However, to ensure its smooth operation, people need to do a lot of work behind the scenes. In order to truly grasp the affiliate members of the commission amount, the need for someone to track websites visited by members of the actual situation of a affiliate website.

According to the different payment models may need to determine:

* Affiliate membership in a particular site and click to enter the number of merchant sites
* Members through an affiliate site links into the affiliate website and on the website shopping or perform other acts of the expected number of clients
* In the affiliate members of the website of a affiliate website published the number of banner ads

In addition, merchants and affiliate tracking between members of the original agreement to ensure that the latter received a deserved commission.

Whether a merchant Web site to recruit affiliates, or affiliates to identify interested in affiliate marketing programs are a lot of work needs to be done. However, there are still many companies that take the time to personally manage members are quite worth it, therefore, as tirelessly as the Amazon, the pro-force into it. Although these companies the entire process of marketing the program and in full control of the commission paid on time, they are still able to attract a large number of franchisees.

Because their conditions of membership in terms of a zero risk or zero cost, that is, affiliates can link to websites to make money just doing a good job. However, for many sites, recruiting members, or join an affiliate business websites are pieces of time-consuming and laborious task. Web site owners and many have little confidence in the commission calculation of the amount of commercial sites.

Are you looking for more information on affiliate marketing? CK Fang’s has been in the business of affiliate marketing websites for over 3+ years. He is the creator of “What is Affiliate Marketing Or an Affiliate Site”, which give you information what is affiliate marketing.