What are Affiliate Marketing / Referral Marketing?
Quite simply, Affiliate Marketing is the act of promoting someone else’s goods and services. Your own expense in order to earn commission from sales made through your efforts. It is important to firstly understand the primary word itself affiliates:
As a Verb it means: To associate (oneself) as a subordinate, subsidiary, employee, or member. As in “You may Affiliate yourself with a company.”
Whereas the Noun defines: A person, organization, or establishment associated with another as a subordinate, subsidiary, or member. You may become an Affiliate with our company.” Secondly, it is important to understand the groups, or entities, involved.
Type of business structure:
Trader / Shop: The entity selling goods and services.
Customer: The entity looking to purchase goods and services.
Affiliate: The entity (you) advertising the goods or services on behalf of companies.
Affiliate Group: The person that manages the administration.
Normally a Trader or Shop will sell their wares directly to the Customer. The Trader must spend a lot of time and money on advertising, trying to attract Customers. Therefore, it is in the interests of the Trader to have a lot of people advertising their products for them.
They don’t want to pay the Affiliate simply advertise because there is still no guarantee that Customers will buy anything. So, instead of up front advertising fees, the Trader offers the Affiliate a Commission on anything. The Customer buys some pay for pay per click campaigns, but this seems to be getting rare.
Therefore, your job as an Affiliate Marketing person is to advertise various products and services. Your website in order to generate traffic (click-through) to the Trader’s (like Dell) website. They become responsible for getting the Customer to buy things is called Conversion.
Essentially is the act of turning a Browser into a paying Customer. The various Traders have different rates of Conversion and Commission. The Affiliate networks manage the relationships and administration between the Traders and Affiliates. Affiliate Groups gather together lots of Traders and create Programs which Affiliates can sign up to.
You need to apply for an account with an Affiliate Group, almost free to join. You sign up individually for the Trader Programs that they offer. Some Traders will accept you automatically whereas others may want to review your website to make sure.
It is an appropriate place for their brand to be displayed. Not all Traders choose to use an Affiliate Group and may work directly with Affiliates. Don’t just dream about making money on the internet, have a go. It is quite simple to start.
Affiliate Expert Lea Beven has 6 years’ experience of running and developing websites, owning over 80 sites in that time. Learn from her tips and tricks about the simple way of making money legally online. As described by forum users, Field is a serial networker who loves to share information about affiliate marketing.
She openly shares problems, in affiliate marketing with the public, even down to personal information on her mistakes and websites. Now working part time with regular clients that really want to make money, she prefers to keep business small and personal.