Affiliate marketing can be described as a type of internet marketing, where one company rewards their affiliates for any visitor or traffic sent to the company through the affiliate’s marketing efforts. It is therefore the process where one website drives traffic to another website.
Let’s have a look at an example: Company B can advertise Company A’s services on their website. Every time an internet user click through to Company A’s website from Company B’s website, Company B has in fact referred a visitor to Company A’s website – this is seen as an affiliate lead.
Affiliate marketing is therefore a way to make money online, without having to put in too much energy and effort. If you, as a website owner, decide to do some affiliate marketing from your website, you will be seen as a publisher. The business who is promoting their product or service through you is seen as the advertiser and they will generally supply you with everything required to run a successful marketing campaign for their company. This generally includes different shapes and sizes of banners and other internet marketing material. All you have to do is select the best content/banner/advertisement for your website and publish the material on your site.
How can you make money from affiliate marketing?
As mentioned earlier, the purpose of this type of marketing is to drive traffic from one website to another. Sometimes publishers are rewarded as soon as the advertising company receives a lead through their websites. In the insurance industry for example, a lead would simply be a client completing a short questionnaire, requesting more information from the advertising company (the insurance provider). Note that no actual sale is required before the publisher will be rewarded.
In other cases, publishers are only rewarded once an actual sale is made following their lead. In this instance the publisher would typically receive a commission on the actual purchase. The commission is usually paid on a monthly basis, or as soon as a certain value is reached by the publisher’s sales. This depends from campaign to campaign.
The advertiser generally supplies the publisher with a code which is linked to the advert the publisher places on his/her website. This enables the advertiser to track where their leads or sales originated from, so that the correct publisher can be rewarded.
There are a lot of companies that handles affiliate marketing campaigns on behalf of a number of clients. Such companies will usually do a short evaluation of your website before allowing you to participate in their affiliate marketing programs.
The reason for this is because a lot of the affiliate advertisers are professionals in their respective industries and they cannot afford negative publicity. For that reason they typically select publishers with professional looking websites. It is also important that the publisher’s website draws a lot of visitors – it is no use running affiliate campaigns on websites without any traffic!
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