What Is Affiliate Marketing?

by automation on March 13, 2009

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What Is Affiliate Marketing?

Affiliate marketing has many descriptions, yet all have the same meaning. Affiliate marketing is a huge business piece on the Internet. It is a cooperative effort between merchants and an affiliate’s website. For many years now, affiliate marketing has proved to be a cost-efficient, measurable method of delivering long-tern results. It has become famous for Internet sites who are trying to make some extra or additional income for their site. Every day, people get interested to affiliate marketing and want to make money out of it. But in many cases, these new affiliates do not fully understand the affiliate world and make costly mistakes. In other words, affiliate marketing has often been misunderstood.

One of the common misconceptions that are being associated about affiliate marketing is “selling”, though selling is an important activity of affiliate marketing and the central function of a business operation. Another is that affiliate marketing is commonly linked with “advertising”. While the importance of advertising in marketing a certain product is not to be underestimated, the fact of the matter is, advertising like selling, is merely a part of the many functions of marketing.

In affiliate marketing, an affiliate is compensated for every visitor, subscriber and/or customer provided through his efforts. The said compensation may be made based on a certain value for each visit. The most attractive aspect of affiliate marketing from the merchant’s viewpoint is that no payment is due to an affiliate until results are appreciated.

Affiliate marketing is typically being run by affiliate networks and this affiliate networks are composed of two functional bodies, the group affiliates and the group merchants. Each has their special function and role when it comes to affiliate marketing. The affiliate network acts as a third party between the merchant and the associated affiliates. The network provides the technology to deliver the merchant’s campaigns and offers. The affiliate network also collects commission fees from the merchant and then pays the affiliates which are part of the program.

If you would observe the company that delivers the daily paper to your doorstep for a business case study, you will come to learn that the newspaper publisher hires reporters, writers and other important staff to create the contents and deliver the papers to their readers.
In addition to the above mention, the publisher has to invest regularly in heavy duty machineries and tons of papers in printing tons of newspapers on a daily basis.
And in Order to ensure that the newspapers are delivered on time, the publisher appoints agents at every part of the covered territory.
So, how does the newspaper company make money? It is obvious that selling a copy of the papers at less than a dollar would not even be able to even fund the operations.

The answer? Selling advertising spaces! You have definitely seen lots of advertisements in the newspaper. The publisher simply sells advertising space in the papers to advertisers who want to leverage their advertising efforts on the paper’s high readership.
On the same analogy, you can make money the exact way from your newsletter: simply by selling advertising space to prospective advertisers!
If your mailing list size exceeds 1,000 (5,000 is recommended) subscribers and beyond, you can start selling advertising space for say, $10.00 per sponsor ad.

In this manner, you turn every issue you send out to your subscribers into a profit-pulling device. And since there is virtually no end to the stream of advertisers as products, services and businesses are cropping every single day in every industry imaginable, so are your money making opportunities. Such as these
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Also known as the “name squeeze page” or “lead capture page”, you can build your mailing list by funneling all of your would-be subscribers through the creation of a landing page. Not only do you do the work just once, your traffic driving efforts can be focused onto just one effective method.
The following are tips in creating a successful landing page that converts visitors into subscribers on a very huge percentage.
Success Tip 1: Offer a freebie in exchange for your visitor’s email address. I very much endorse this method of building your mailing list. You can offer a special report or a sample of your paid product to your visitor in exchange for their details such as name and email address.
Success Tip 2: The landing page must be written professionally. When writing your page, treat it as if you are writing a sales letter. While you are not necessarily making a hard sale or try to get someone to buy your product upfront, being able to entice your visitors to give their details to you is just as important as selling.
Success Tip 3: Other than your opt-in form and perhaps important disclaimers and terms, there shouldn’t be any other links on your landing page. Choose a specific niche such as
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Success Tip 4: Rub in the benefits of the freebie you are offering more than a mere subscription to your newsletter. You should focus most of the attention of the letter on encouraging your prospective visitor to download your free offer. Later, you gently remind your prospect that he or she has nothing to pay but just merely subscribe to your newsletter in exchange for the freebie.
As a final reminder and conclusion, in Order to build trust, you can include your hand-written signature or a photo of yourself explaining where you are coming from and how you can help your visitor through your free report on offer.

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