The Internet is an amazing vehicle for turning ideas into money, and this is the time to look to cyberspace to find your own personal cash machine. Affiliate marketing is just such a deal. Not only is it an easy way to make money from your own website, it is also a relatively lazy way to earn income.
Who Benefits From Affiliate Marketing?
Both sides benefit from this affiliation. The company that uses affiliate marketers gets expanded advertising for their company or product at no real expense other than a small commission that is only paid upon receipt of orders. On top of those additional sales, exposure for their company or product on the Internet is greatly increased with no additional cost or effort.
On the flip side, the affiliate marketer can advertise a huge amount of products and earn commission without any real work. They do not have to bother with storage, shipping or handling of products. They generate sales for the company and receive commissions, just like any other commissioned salesperson but with little to no effort. Risk for the affiliate marketer is minimal. If an ad does not generate a sale, it is the only risk to either party in this joint venture.
How is Affiliate Marketing Achieved?
Implementing affiliate marketing is simple. Just place text or banner ads on your website and all the work is done by someone else. You offer exposure to your audience, and when sales result, you get paid. At the same time, classy ads can add prestige to your webpage look, and commissions can be generated day or night, 24/7.
Are There Drawbacks?
One drawback might be if the affiliate’s website audience does not act on the advertising to click through to the advertiser’s website and make a purchase. Targeting and niche marketing can help offset this risk as a targeted audience is more likely to act upon ads of interest to their group. Drawbacks for the advertiser include some lack of control over ad placement and affiliate website content. Termination of the agreement is always an option on both sides.
How to Join Affiliate Programs?
To join affiliate programs, there are several websites that are available to use as clearing houses. Sign-up is free, and they handle the commission tracking and payments for the companies. Some individual companies may also offer their own programs to website owners wishing to become affiliates and run ads for their products. The clearing houses are easy to use and include: Commission Junction and Webgains, among others.
What Happens After I Join Affiliate Marketing?
As soon as you are accepted, which should be immediately, you can sign up to be an affiliate marketer or publisher for advertisers of your choice. Each one will need to look at your website and make an approval prior to using their ads and receiving payments. With a clearing house situation, there are paperwork benefits like only giving out your tax information one time. You receive payment any time your commissions are above a certain required level, such as $10.
What is the Hard Part?
Perhaps the most difficult thing about becoming a paid affiliate is generating the traffic on your website that will be likely to purchase any affiliate products you are advertising. If you cram your website full of banner ads, people like to call that a “banner farm” and it does not work as well as a niche plan. Without the right audience, ads will go unnoticed and sales will not be made.
What Do Affiliate Companies Want from Affiliate Marketers?
For advertisers, finding the right affiliates with websites that will draw your target audience is important. It does not make sense to allow your ads to be placed on irrelevant websites. For example, ads for baby clothes would not work well on a website featuring cigars or guns. Advertisers can still control placement of their ads, and they can terminate non-productive affiliates. This type of advertising can give you vastly improved reach for your ads around the world, at minimal commission costs.
Affiliate marketing can be turned into a cash machine for everyone if done correctly. Marketers need to gain the right viewership while advertisers must have great offers and nicely designed ads. This opportunity for sales and profit can be amazing for both parties to the deal.