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What is online Affiliate Marketing?

What is online Affiliate Marketing?

Basically, online affiliate marketing is where someone advertises for another person’s website and in return the advertiser receives commission for each sale their advertising brings to that website. You are considered an affiliate if you’re advertising for a web site that you don’t own, and you are getting paid for each sale your advertising produces.

Here’s an example: Let’s say I want to sell computers, but I don’t have a website and I don’t have any computers to sell. Well instead of starting a company, I can just find a company online which already sells computers and offers an affiliate program.

Now that I have searched and found a company, I look at what they offer. Let’s say they giving 10% commission on every sale I make. I decide to use that company and I set up my affiliate account with them and they give me a special URL (a web address that will let the company know that it was my advertising which gave them the sale), which I use in my advertisements.

Now I make an advertisement, and display it on Google. Whenever someone sees and clicks on my advertisement it will go to the company’s webpage. Let’s say that one hundred people click on my text advertisement and one of them buys a computer that cost $1,2.00. Because that person who bought the computer clicker on my advertisement the company will give me 10% of $1,2.00 which means that I made $120.00.

Finding Affiliate Companies

Almost every large company online has an affiliate program. There are also companies online where all the do is offer other online business a way to have an affiliate program. I call these companies Affiliate Companies.

These Affiliate Companies manage affiliate program for thousands of online companies and websites. This means that if you have an affiliate account with an Affiliate Company (don’t worry, they are completely free), you can advertise for any of the thousands of websites that use the Affiliate Company to manage their affiliate sales. If you want to, you can search Google for affiliate programs just to see how big online marketing currently is.

When you are looking at these Affiliate Companies you will notice two things. They will offer services to both Affiliate and Merchants (also called vendors). Here’s the difference between the two:

Affiliate – Person who promotes a website to receive commission for each product they sale.

Merchant – Person or company which owns the website being promoted by the affiliates.

Here are a few of the most popular Affiliate Companies

ClickBank – Having an affiliate account with ClickBank will allow you to sell digital product (only available via download) for over 10,000 online businesses. Their commission rates on average run anywhere form 10% – 75% per each sale the affiliate makes that webpage. I highly recommend starting off with ClickBank.

Commission Junction – Having an affiliate account with Commission Junction will allow you to sell mostly physical products (must be shipped to the buyer). A few of the big companies which use them are eBay, Dell, Best Buy, Yahoo, and many more.

LinkShare – LinkShare is very similar to Commission Junction. Most of their products are physical goods which have to be shipped to the buyer. Some of the larger companies which use them are Target and Wal-Mart.

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