Affiliate marketing, in simple terms, is a method by which merchants get the word out about their products or services through affiliates (people willing to do the promotional work).
You, as an affiliate, promote a merchant’s products or services for a commission. Each time a person you refer to the merchant completes a task (which may consist of purchasing a product, filling out a form, or downloading something), the merchant will pay you a flat-fee or a percentage of the sale.
Merchants come in all shapes and sizes, from the small businesses to large companies that nearly everyone has heard of such as Amazon.com and Wal-Mart.
The Mechanics and Benefits of Affiliate Marketing
Though affiliate programs may vary, they generally follow a similar standard. When a visitor clicks on one of your affiliate links, she is redirected to the merchant’s website where a tracking cookie, a small text file used to store information, is saved to her computer and it lets the merchant know you were the one who referred her. When she completes the task the merchant wants her to do, you receive a commission.
The main benefit to the affiliate marketing structure is that your only task is marketing; getting the visitors to the merchant’s website and to complete an action. The merchant handles closing the deal (i.e. the selling), managing inventory, order handling, shipping products and customer service.
Another reason that affiliate marketing is so appealing is the low start-up and overhead cost associated with running the business. You could get started in the affiliate marketing industry with little more than a computer with internet access and a desire to succeed. (However, it’s highly recommended that you invest in your own website and set aside a marketing budget if you intend to grow your business.)
Once you’ve decided to delve into the world of affiliate marketing, you’ll quickly see that the products available to promote are nearly limitless. Chances are, if you have a niche, there is a product you can promote as an affiliate.
Building An Affiliate Marketing Business
Affiliate marketing is a business that anyone can start, but not everyone will succeed in. To be a successful affiliate marketer, you must learn to treat it like a business — that’s where many people fall short. It’s easy to fall into the comfort zone trap and forget that the playing field is constantly in flux. In order to grow your affiliate business, you must be willing to invest your time and money in it like you would any other business.
Make sure you take the time to learn the ins and outs of the business before setting up your first website. If you’re looking for a guide that provides a plain English blueprint to affiliate marketing, consider reading Rosalind Gardner’s Super Affiliate Handbook — after you read it, you’ll want to run out and get it printed so you can reference it often.
