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| By: Sha - at February 3, 2013 |
How to Make Money Online from Affiliate Marketing
What is Affiliate Marketing?
 Affiliate
marketing is a contract between a website owner and an online merchant or
advertising agency. It is technically a revenue-sharing venture between the
website owner and the online merchant. The website owner agrees to publish the
advertisements of the merchant’s products and services on the website to help
sell the products and services or to perform specific tasks by sending traffic
to the merchant’s website. The website owner earns a commission or a flat
amount of money which is agreed on in advance per sale or task performed by the customers. The website owner who sends traffic to the merchant’s website or online store is
called an affiliate. The way both the affiliate and the merchant market the
products or services is called affiliate marketing. Types of
Affiliate Marketing
The publishers or the webmasters can usually earn money in three ways through affiliate
marketing. These are:
- Pay Per Click (PPC)
- Pay Per Sale (PPS)
- Pay Per Lead (PPL)
Pay Per Click (PPC) Affiliate Marketing
In PPC marketing, you earn money online from your blog or website every time a
visitor goes to a merchant’s website through the merchant’s ads placed on your
blog or website. To put it more simply, when any visitor to your website clicks
on an ad of any merchant and leaves your website to the merchant’s website you
are paid a certain amount of money for this action by the merchant.
 The amount you earn per click may depend on the agreed-upon commission, and
the product or service that is advertised on your website. The strength of
traffic to your website can also determine the amount of money you may get from PPC affiliate marketing. You might get paid once you accumulate a certain amount
of money or minimum amount. Your earnings might be automatically electronically
transferred to you, or you might need to request the merchant to make a payment. If you do not have an online payment service or do not want to receive money
online, the merchant might mail a check to your address at regular intervals. Also the money might be paid to you at regularly scheduled times, for example
once a week, every two weeks, or once a month.
Pay Per Sale (PPS) Affiliate Marketing
PPS affiliate marketing allows you to earn money every time a sale is made on
the merchant’s website by any visitor who went to the merchant’s website through
the merchant’s link placed on your website. This is an action-oriented type of
affiliate marketing. If you are an affiliate then you might earn a commission or
percentage of the money made by the sale, or a flat rate, depending on the
agreement between you and the merchant.
Pay Per Lead (PPL)
Affiliate Marketing
You earn money online from PPL
affiliate marketing when the visitors to your website click on an ad that goes
to your merchants’ websites and do specific tasks, such as to register or sign
up for a product, service or subscribe to a newsletter, then you might earn a previously
determined amount of money.
Advantages and Disadvantages of Affiliate Marketing
You can earn extra money without having to do anything other than placing the
ads on your website as an affiliate. You do not need to sell or promote
anything. You actually make money without having to invest anything
or promote anything. You just sit back and wait for the money to roll in,
that's it!
From the merchant’s point of view, affiliate marketing is very lucrative for
online merchants. Affiliate marketing is a great way to promote their
products and services online by attracting customers through their ads placed on
the affiliates’ websites. They can place the ads all over the Internet,
choosing thousands of affiliates. Affiliate marketing is also a very
cost-effective advertising program for the merchants. The merchants only
pay the affiliates when the desired result is achieved through the ads on their affiliates’ websites.
 There are a few disadvantages too. If an affiliate does not choose a
reliable merchant then the affiliate might not get paid in advertising for the
merchant. So it is important that you run background checks of the
merchants before you enter into an affiliate agreement. The merchant’s
reputation might be affected if any of its affiliates promote the merchant’s
business in nasty ways. If an affiliate has materials that some people
might consider objectionable on the affiliate’s website then this can harm the
reputation of the merchant. That is why both the affiliate and merchant
should be aware of the disadvantages too. However, the advantages outweigh
the disadvantages vastly. Besides the
disadvantages with affiliate marketing are seldom seen.
A very reputable place to sign up and browse legitimate products to promote
for commissions is
ClickBank, they currently have the
highest commissions on the planet, upwards to 75% commissions on most products.
This is thanks to the fact that 95% of the products sold through their
marketplace are digital products that have
hardly no overhead expenses. Affiliates are earning a lot through Clickbank.
It is also easy for merchants to sell digital products through ClickBank as well.
Conclusion
Affiliate marketing is one of the best ways to earn money online for website and
blog owners. There is literally, nothing to do from an affiliate’s side
besides creating content for it's visitors. However, there are few things that you should remember to do as an affiliate. Always pick a reliable merchant. Do not pick a lot of merchants
but only select a few
trustworthy merchants who have a good record of paying money on time to their
affiliates. To succeed in making money from affiliate marketing as an affiliate
you will need a lot of traffic to your website. To attract a lot of traffic to
your blog or website you need to provide a lot of fresh content and update your blog or website for your visitors
frequently.
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