How Affiliate Marketing Works

When a website links a product or business on their site, it can draw traffic to the product or business. If someone uses this link and makes a purchase, a pre-determined amount of the profit is awarded to the website for bringing the business more paying traffic. This process of performance-based marketing is called affiliate marketing.

Affiliate marketing is easy for everyone to become involved. You have a product to market, or you want to add other people’s products to your page to promote, and you let your traffic do the rest.

A person that hosts the link on their site makes profit for having their traffic driven to a product or business that they link. When a company starts affiliate marketing online they create a contract that details the exact percentage or amount of profit each purchase will earn the website. Some companies pay very little per click for traffic, where as some companies give the site 100% profit for the small item that they link knowing that the consumers will purchase their higher priced items as well.

This marketing strategy works because the website hosting the link profits from traffic that is already driven to their site that then follows the link. The business that owns the link profits by gaining more traffic and sales to their site through the link provided. This marketing strategy only requires the initial contract and minimal supervision or effort. You log into your PayPal account and have profit seemingly overnight.

A few companies that offer affiliate marketing programs to look into are ClickBank, Amazon Associates, Commission Junction, and FlexOffers. Each of these programs offer different incentives and different niches. Commission Junction offers the most merchants to choose from, FlexOffers offers a 250$ incentive when a friend joins through you, ClickBank offers eBooks and software that earn up to 75%, while Amazon Associate offers a trusted name brand to promote Amazon products.

A few tip to affiliate marketing:

  • Choose a niche that relates to your website and product. Many people assume that you have to choose the most popular niche to make the most profit. This is not true because if you have traffic that has come to you for video game content, but you are trying to sell them on beauty care no one is going to click your link. Know your market and know how to appeal to the traffic that your site pulls in.
  • Make your link and posts entertaining. Consumers do not like affiliate marketing because they view it as popups and unwanted ads. Your link needs to draw people to not only click on the link, but to purchase a product on the page so that everyone benefits.
  • Use more than one affiliate program because consumers like to shop around online. You will gain more traffic and a broader range of consumers buying your products. Product knowledge and sales are the two reasons for affiliate marketing, so this is important.

Affiliate marketing can seem daunting when you first start out with your website, blog, or business. Do your research on affiliate marketing, which can be done on this site, marketing strategies, current techniques, and which companies to go through before you make the leap. Once you begin affiliate marketing, you will enjoy the added traffic and sales without all of the hard work.

Antonio Pendergras is a marketing journalist that spends his days reporting on the latest trends. When he is not a suit and tie guy he enjoys telling other people how they can capitalize on the internet market, and volunteering his knowledge as a guest speaker at local colleges.