What is Affiliate Marketing

People are discovering the power of the Internet and affiliate marketing, and using this strategy to supplement or even replace their nine to five income.
More people would like to come into this exciting world but are unsure of what an affiliate campaign consists of.

When learning about affiliate marketing, it helps to do a comparison between them and a traditional brick and mortar company. In that everyday world, many big manufacturing companies and large product wholesalers and retailers use a network of salespeople and distributors to get their products to all corners of the world.

For instance, a clothing manufacturer, instead of selling directly to their customers, sells their goods through a series of distributing channels and salespeople. In turn, the members of this distribution network and sales promoters enjoy a good living by promoting the products made by others.

The affiliate programs found on the Internet are no different. Distribution of goods and services take place, but just in an online setting. Each individual website acts as a the the sales and distributing network. The owners of the website then pay these individual for promoting their product or service.

This arrangement has become so popular and it is easy to see why this is a win win situation for both the original goods or service creator (merchant) and to the members who become an affiliate of the program. The merchant benefits from increased sales by having other do some of the work for them by showing the goods or service to more people at the same time. They sell more of what they are offering but at at a lower profit margin.

The affiliate gets paid whenever they promote the website and a sale is made. This puts money into the pocket of he person using an affiliate website without having to develop a product or service.

Every affiliate marketer is given a link to their own website with a unique name or number attached. This is how the merchant knows where the sales and customers are coming from and who is to be paid. A visiting website customer is logged at the merchant site as well as being logged when a sale is made, so the sales commission gets credited to the right source.

An affiliate marketer is entitled to a percentage of every sale made from their affiliate website. The commissions vary and usually go between 10% and 50% of the selling price.

Another great reason to become an affiliate marketer is you do not have to buy or stock products, instead you are acting as an agent or distributor for someone else’s product and reaping the benefits.

Its not hard to understand why so many people are becoming affiliate marketing agents and are starting their own Internet business in this way and become an affiliate marketer.

Affiliate programs are very popular, and one reason is that unlike other types of internet businesses there is no need to stock products, buy products or even have products. That is because instead of selling your own product, you are acting as a salesperson or a distributor for the products of others.

This can make a huge difference to your profit margins and your bottom line. So if you’re not already acquainted with the concept of affiliate marketing, why not try it out?