What is Affiliate Marketing?
In simple terms, affiliate marketing is where you refer visitors from your website to a merchant’s website. A merchant is any individual or company that sells products or services online. Wal-Mart, Home Depot, eBay, and Yahoo are all examples of merchants with affiliate programs. These companies pay their affiliates to promote their products and services online. Merchants with affiliate programs range in size from small businesses to Fortune 500 companies. You earn commissions when the visitors you refer complete some type of action on a merchant’s website. For example, you may earn a commission if the visitor you refer makes a purchase, completes a lead form, or downloads some software.
How Does Affiliate Marketing Work?
When a visitor comes to your website and clicks on one of your merchant’s links, a tracking cookie is set on the visitor’s computer. A cookie, in Internet terms, is nothing more than a small text file that is placed on a user’s computer when they visit a website. This cookie tells a merchant that a visitor was referred by your website. When that visitor makes a purchase, or completes some other action on a merchant’s website, the merchant gives you a commission. That’s it! You don’t have to fulfill any products, handle customer service issues, or do anything else. All you’re doing is referring visitors from your website to a merchant’s website.
When a visitor comes to your website and clicks on one of your merchant’s links, a tracking cookie is set on the visitor’s computer. A cookie, in Internet terms, is nothing more than a small text file that is placed on a user’s computer when they visit a website. This cookie tells a merchant that a visitor was referred by your website. When that visitor makes a purchase, or completes some other action on a merchant’s website, the merchant gives you a commission. That’s it! You don’t have to fulfill any products, handle customer service issues, or do anything else. All you’re doing is referring visitors from your website to a merchant’s website.
The Benefits of Affiliate Marketing
- Flexibility - Business on your terms
- Money - The only limit on your earning potential is you
- Low Start-Up Costs - You don’t have to mortgage your house to launch an affiliate business
- No Employees - Unless you count yourself
- No Inventory - All you need is a computer and an Internet connection
- No Customer Service - Let someone else worry about it
- Unlimited Products and Services to Promote - The possibilities are endless
- Market to a Global Audience - They don’t call it the World Wide Web for nothing
