What Exactly is Affiliate Marketing?

If you are new to the world of Internet Marketing, you may be asking yourself what affiliate marketing really is. In a nutshell, affiliate marketing is one of the fastest, and most lucrative means of kicking off your online career.

To put it simply, affiliate marketing is selling products or services someone else has to offer. There is no need for you to create any product; it already exists. There is no need for you to provide any service, as this service is already being provided by someone else. Your business is to advertise and sell these products and services for these individuals or companies.

With affiliate marketing, you have different categories to choose from. The first is Pay Per Click (PPC). This is great for beginners and those with small websites. Normally with this method, the affiliate marketer puts banner ads or text ads on their own site as well as possibly sites such as Google Adwords linked to the merchant’s website. When someone clicks these links, they get credited. However, the amount per click paid to the affiliate can vary greatly, and is usually a small amount.

Pay Per Performance (PPP) is a method which is used by big affiliates and many types of merchants. This method credits the affiliate only once a certain action is performed by the visitor using the affiliate’s id. This could include making a purchase, or becoming a member of a membership site. While the affiliate only gets paid if the merchant gets paid, the revenue is usually higher. Merchants are more likely to pay out approximately 15-20% of each sale when they are sure of the sale.

There is also the multi-tier program option available in some cases. This means if someone signs up as a result of your affiliate code, you will receive additional compensation or commission as a result of their sales. This amount is usually significantly less than what you make yourself, but is an incentive for you to get more advertisers for the merchants you promote.

To your success,

Dennis

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