What is affiliate marketing and how it works

You heard about affiliate marketing, its use to earn money. But you don’t know what use of affiliate marketing is and how to earn money? What is affiliate marketing and how its work?

What is Affiliate Marketing?

Affiliate Marketing is an internet marketing channel in which advertisers (or companies who offer a product or service) pay publishers on a pay-for-performance basis. Essentially affiliate marketing involves a merchant paying a commission to other online entities, known as affiliates, for referring new business to the merchant’s website.  So unlike Google AdSense you don’t earn anything for clicks. You’re only paid for results which could be a sale or a lead. Affiliate marketing is performance-based, which means that affiliates are paid only when their promotional efforts actually result in practice.

How it’s Work?

You are a Publisher (affiliate marketer) and Advertiser (Retailer, Merchant, company) provides ads or product on your website. You add product or add in your website. There are three types of terms in affiliate marketing.

·         Pay Per Sale (PPS) – In Pay per Sale programs the advertiser pays you a percentage of all qualified sales. The most popular Pay per Sale affiliate program is Amazon Associates where you can earn up to 15% to 20% depending upon the category of products.

·         Pay Per Click (PPC) – In Pay per Click programs you get paid for all valid clicks that you generate regardless of leads/sales.

·         Pay Per Lead (PPL) – In Pay Per Lead programs the advertiser pays you a commission (a fixed amount) for a qualified action which can be a short survey, free trial, install, sign up, online form submission etc. A perfect example of Pay per Lead programs would be dating websites which usually pays for a free trial.

Most importantly, you need to take action. The most successful affiliate marketing is people who want to do, rather than those who think you are taking what you learn about affiliate marketing and start working hard. You cannot get it for the first time, but the experience is really when you are learning affiliate marketing. You do your skills and capabilities in a timely manner, so do not trouble on the fine points!