What is Affiliate Marketing and How Does It Work?
Affiliate marketing is a sort of marketing in which a person promotes another person's product or service in exchange for a commission.
Other than the moral responsibility to promote products of high value to their clients, the affiliate marketer bears no responsibility for product quality, delivery, or maintenance.
Why should you get involved in affiliate marketing?
Working part-time or full-time while building a substantial passive or residual income is possible with affiliate marketing.
“Residual income (also known as passive or recurrent income) is revenue generated after the initial effort has been expended.”
Affiliate marketing is one of the simplest ways I'm aware of to make money with little or no initial investment and minimal technical knowledge.
There are other economically efficient marketing approaches available, in which the product owner does the majority of the marketing to promote the product or service.
While you're learning to make your own products and websites, you can get started with affiliate marketing right away.
Affiliate marketing is a money-making opportunity that you can pursue while working on your main Internet revenue stream.
The Affiliate Promotion Method
Another flow chart I created for you is shown below.
It will help you understand the basic Affiliate Marketing flow process that you will be participating in during your Affiliate Marketing.
Common Affiliate Product Promotion Techniques
During this point, I'm just going to provide you a list of some terrific strategies to promote your affiliate products when you're just getting started with affiliate marketing.
On the next pages, we'll go over the ones that I believe would be the greatest for a beginner to start with.
List Promotions-
You can promote products to your list that you believe would be useful to them by building a relationship with them.
Blogging-
Another fantastic technique to advertise affiliate items is through blogging. The most productive blogs are those where you pay for and host your own domain.
There are, however, free options that can be equally effective.
Here are a few places where you may create a free blog:
Blogger Blog – http://www.blogger.com
WordPress – http://www.wordpress.com
Weebly – http://www.weebly.com
Social Media Marketing
HubPages – http://www.hubpages.com
Squidoo – http://www.squidoo.com
Article Marketing
Ezine Articles – http://www.ezinearticles.com
Go Articles – http://www.goarticles.com/
Article Dashboard – http://articledashboard.com
Easy Articles – http://www.easyarticles.com
Video Marketing (product reviews/benefits)
YouTube – http://www.youtube.com
Real People – http://www.realpeoplerealstuff.com
Revver – http://www.revver.com
MySpace Video – http://vids.myspace.com/
Forum Advertising
You must conduct a search for a specialty forum that meets your marketing requirements.
Classified Ads
CraigsList – http://www.craigslist.com
USFreeAds – http://www.usfreeads.com
Backpage – http://www.backpage.com
Kijiji – http://www.kijiji.com
Oodle – http://www.oodle.com
Social Networking Sites
Facbook – http://www.facbook.com
Twitter – http://www.twitter.com
Yahoo Groups – http://groups.yahoo.com
MySpace – http://www.myspace.com
Ning – http://www.ning.com
Pay Per Click Advertising
Google Adwords – http://adwords.google.com
Yahoo Search – http://searchmarketing.yahoo.com
Microsoft – http://advertising.microsoft.com
SLC
Affiliate marketing is based on three types of actions:
- Sale
- Lead
- Click
Pay Per Click (PPC), Pay Per Lead (PPL), and Pay Per Sale (PPS) are the three types of actions that affiliate networks use to pay its affiliates.
Pay Per Click (PPC)
When a visitor to a website clicks on an affiliate link, the affiliate receives a specified amount of money.
The visitor only needs to click through and view the advertisement in order for the affiliate to be paid; no other action is required.
PPC is normally the cheapest sort of activity, but it is also the simplest to complete.
Pay Per Lead (PPL)
When a visitor clicks on an affiliate link, they are directed to a form where they can request more information, subscribe to a newsletter, or join an online group.
A cash transaction or credit card information is normally not required by PPL.
Pay Per Sale (PPS)
The most lucrative sort of action is usually Pay Per Sale.
It's also the most difficult to complete (in general).
To participate in a product or trial offer in PPS, the visitor must make a purchase or input their payment card information.
The affiliate receives a share of the sale (commission).
Affiliate Programs with “Two-Tier” and “Three-Tier”
Affiliate programmes are two-tiered systems that distribute commissions to sign-ups and sub-affiliates through a referral network.
As you may have seen, LeadLock has one of the few three-tier affiliate programmes available!
Affiliate A, for example, joins an affiliate programme and is paid for each sale or lead generated by a visitor.
Affiliate B becomes a sub-affiliate of Affiliate A if Affiliate A convinces Affiliate B to join the same programme using his sign-up code (or affiliate code).
Now that Affiliate B has attracted an affiliate, he receives the major affiliate commission, while A receives commissions on both B and C - quite great!
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