Choosing Affiliate Marketing as a Business Model

There are several business models in the marketplace that allow you to generate income by working on the Internet. Affiliate marketing is often referred to as the fastest and simplest of these business models.

Affiliate marketing is a mutually beneficial partnership between the merchant also referred to as the advertiser, and affiliate also referred to as the publisher.

* The publisher promotes the merchant's products.
* Customers visit the publisher website.
* The publisher directs the customer to the merchant's website.
* If the customer makes a purchase, the merchant pays a commission.
* Tracking of successful orders and actual payment is often handled by a third party Affiliate Network.

For clarification purposes, I will list here some equivalent terms. I know that I found them confusing when I was first introduced to affiliate marketing:

* An Affiliate may also be referred to as a Publisher.
* A Merchant (whose product an affiliate promotes in an effort to earn a commission on sales) may also be referred to as a Seller or Advertiser.
* An Affiliate Network may also be referred to as an Affiliate Marketplace or an Affiliate Program.

Affiliate marketing is considered a low risk business for the affiliate. There is no inventory or shipping to handle. Overhead of running an affiliate business is low: all you really need to get started is a computer, an internet connection, and some free time.

An important point to remember is that an affiliate does not need their own product; they sell other peoples' products.

The merchant favors affiliate marketing because the pay for performance compensation model is used. The merchant does not have to pay the affiliate unless a sale is made.

Here is an example:

I join Amazon.com affiliate program. I chose a book that I would like to promote. I place an affiliate link for that book, provided by Amazon.com, on my website. A customer comes to my website, is interested in the book title, and clicks on the affiliate link. The customer arrives at Amazon.com sales page for the book that I am promoting, and purchases the book. Amazon.com pays me, the affiliate, a percentage of the price of the book in return for directing a paying customer to their sales page.

Great merchants to work with include:

* Google Affiliate Network, connects advertisers and publishers.
* Commission Junction, a global leader in online advertising channel.
* Clickbank, an online retail outlet for thousands of digital products.
* Amazon.com, one of the first online marketing programs, launched in 1996.
* Many other affiliate marketplaces and independent sellers with affiliate programs.

The primary compensation model of affiliate programs is earnings per sale. There are other compensation models, such as earnings per action (getting paid, for example, every time someone fills out a certain form or application), and earnings per click. When joining an affiliate program, be clear on the type of program and compensation model.

Affiliate marketing is driven by entrepreneurs who play a significant role in the online marketplace. You, too, can become an affiliate and earn money online.


Judith Sept offers a step-by-step guide to making money online, and resources for Internet marketing and personal development. Find more information now at: www.HowToMakeYourMoneyOnline.com


Judith Sept

Judith Sept offers a step by step guide to making money online, and resources for Internet marketing and personal development. Find more information now at: www.HowToMakeYourMoneyOnline.com