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What is Affiliate Marketing?
By Cristina Mulberry
Many people seek out the internet for the opportunity to earn additional income or to transition to a home based business. There are a number of ways to generate income online but one of the most popular is to join "affiliate programs". However, before deciding to join such a program, a definition is in order for those who may be unfamiliar with the concept. A Definition of an Affiliate Program An affiliate marketing program is generally run by, or on behalf of, an existing business. The program recruits affilates to drive visitors to their site and to hopefully purchase their products or services. Affiliates are paid a commission; usually a percentage of sales. Thus, an affiliate is somewhat similar to a commission based sales person. There are differences however. Affiliates are not employees or representatives of the company they promote. They are independently employed and must track their own expenses and earnings for tax purposes. The Role of the Affiliate Marketer Some programs pay affiliates for "leads" but most pay commissions for sales only. The job of an affiliate however generally isn't to make the sale; it is to drive consumers to the website. Affiliate marketers can use a number of techniques to drive "traffic" to a business' website. Often they design their own website, on a related topic, and include links to their affiliate program site to encourage purchases. Not all affiliate marketers have their own site, but it is common. Many affiliates participate in multiple programs and drive traffic to numerous businesses. Affiliate marketers may also use blogs, write articles online, participate in forums, create permission based lists for the purpose of mailing newsletters and e-mails, create display ads, transmit podcasts, create video content, and so forth to drive traffic or potential customers to the main site. Some affiliate marketers also use sales techniques outside of the internet. They may place ads in the yellow pages or newspaper, pay for a billboard ad, distribute business cards, flyers, and more.
How Affiliate Marketing Is Different than Many Other Businesses Affiliate marketers do not have to deal with stocking an inventory of products. They also do not deal with shipping of products. In many cases, affiliate marketers do not deal directly with customers regarding sales and they don't make "cold calls" or direct "sales pitches". In this way, they are distinctly different than distributors and even traditional sales people. On the other hand, affiliate marketing does not offer a guaranteed income. In addition, affiliate marketing is not a "get rich quick" kind of business, as it takes time to build up a good reputation and create the content needed to effectively drive traffic and generate an income through commissions.
The draw for many beginners who enter affiliate marketing programs is that the start up requirements are minimal and there is very little capital at risk. To start, an affiliate marketer merely needs a computer with an internet connection, a desire to learn, and sufficient time to devote to building their business. |
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The copyright for this content entitled "What is Affiliate Marketing?" has been specified by the contributor as:
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This intel was contributed by mulberry
mulberry
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May, 2012
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