It’s a proven method of online advertisement. It’s also one of the easiest ways for anybody with a website to make money online. It simply involves a deal between a merchant and a website owner, called the affiliate. The affiliate displays a link to the merchant’s website on their site. In turn, he pays for the commission on the sales that have been generated through those links. With each visitor to the affiliate link directed toward the e-commerce site and eventually making a purchase, he is able to gain a percentage of that sale while, at the same time, only being paid whenever there is a sale.
A Win-Win Situation
It is sometimes said that the pay-for-performance concept in affiliate marketing creates a win-win situation for both merchants and affiliates. On the other side, the merchants benefit by getting far wider exposure to the marketplace for their products or services, besides obtaining the maximum number of audiences which traditional advertising might not accomplish. Basically, the more affiliate sites, the merrier—translating to more traffic and, consequentially, more sales. Or, in other words, it is a rather large sales force with the added benefit of paying a single penny to none of them in advance but only commissions if they close a sale.
Profitable for Affiliates
For affiliates, the relationship is equally rewarding. One obvious advantage for them is how easily they can make a profit. Affiliates get commissions by hosting advertisements or links to the website of the involved merchant. Visitors click on those ads to buy products and, in return, some commissions are given to the affiliates. More referrals mean more profit for the affiliate.
Low-Cost and Convenient
The affiliates make good money with close to zero production cost involved. The merchant has developed and proved the product already; it is left to the affiliate’s job to attract prospects. Most of the affiliate programs are free, which means there are no start-up costs involved. With thousands of products and services available, one is sure to find programs relevant to their website.
No Sales Experience Needed
No experience in sales is required with affiliate marketing. Most programs are very good at support and offering marketing material on their own. Because it is so easy, any person can have a remote business with very little cost and maximum comfort, even building a successful business from home. All that affiliates must do is find prospects for the merchant; they do not have to worry about issues such as inventory, processing orders, arranging shipping, and customer service-all those issues rest upon the merchant.
Minimal Risk and Global Reach
With the internet, prospects run into thousands that can be easily targeted. The affiliate can use various techniques to improve his or her campaign such as Viral Marketing to increase prospects and hence maximize his earnings. Since the risk is very low, if a product does not prove profitable, an affiliate can easily switch to another product without being bound by long-term contracts.
Income Potential
Probably the best benefit about being an affiliate marketer is the potential to increase one’s income. Even if this is a sideline business and one has another full-time job, as an affiliate marketer, extra income can be made with some effort and creativity. Indeed, affiliate marketing is one of the simplest and most effective business opportunities available on the web today.
