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What Is Affiliate Marketing – Introduction To Affiliate Marketing

Written by George Manty  · July 6, 2009

One of the two main ways I make money online is through affiliate marketing (the other is through Internet marketing consulting).

For those of you who are new to affiliate marketing, I thought I should give you an introduction to the basics of affiliate marketing…

“What is affiliate marketing?”

Affiliate marketing is a method for people who sell things online to share their revenue with people who are willing to promote their products for sale. Affiliates (those willing to promote other businesses products on their website) are paid based on performance measures, typically in the form of sales, clicks, registrations, or a combination of methods.

Affiliate marketing is a great way to make money online. In the future I intend to talk about some of the proven affiliate marketing systems that I have successfully used to make money. For starters, here’s a list of the most common used affiliate marketing methods…


What are the most common affiliate program models?

Based on a survey in 2007 by AffStat 80% of affiliate programs today use revenue sharing or cost per sale (CPS) as compensation method, 19% use cost per action (CPA) and the remaining 1% use other methods, such as cost per click (CPC) (ie. Google Adsense). I will discuss each of these methods in more details in future posts.

The main thing to remember is that affiliate marketing allows you to make money online by sending people to visit other people’s websites and buy their products/services. This means you don’t need to deal with customers, you don’t need to create products, you don’t need to store inventory, and you don’t need to ship products. All you do is refer people to the affiliate site in a buying frame of mind and the affiliate site does the rest of the work. This makes affiliate marketing a very easy business to start. No inventory, no product, no customer service, no problem!


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Comments

14 Responses to “What Is Affiliate Marketing – Introduction To Affiliate Marketing”

  1. william on July 6th, 2009 11:58 pm

    George, the affiliate marketing programs have opened up many opportunities to the online users to earn some fast money. I thought it’s a win-win situation for the publisher and the affiliates!

  2. Trevor on July 7th, 2009 2:34 am

    I think there is a lot of potential to make money with affiliate programs. I think there are some really huge brands out there that want help promoting their products with great payouts. I think what you need to bear in mind if you want to become an affiliate is that you need to find a product that you can easily promote. Don’t just look at the commissions you can earn. There are plenty of products that you can choice between – I have a few sites in different niches and I am really pleased with my monthly pay out. Now the question is what is your favorite affiliate network?

  3. Dhir@fast money on July 10th, 2009 2:27 am

    .
    I think affilieate marketing is easist way to earn money online without any investment. Also day by day their is a huge compition to promot the affiliate products. Just use the formula choose the right niche, build the network to promot the affiliate link ( create a website), drive the trafiic to it then make sale.

    Thanks

    .

  4. Zafir Nasir on July 10th, 2009 7:15 am

    Hey George, I agree with you Affiliate marketing is one of the best ways for beginners to start of an internet business. Like you mention, you do not need to create any products and leverage on the affiliate’s products and earn a commission from each sale. I think it’s a win-win situation for both parties involved as not only do you earn money from the sale, the other party gets more subscrbers to his list and potentially increase his Alexa ranking. It should be the approach to take for a person who is still starting up in this internet marketing to earn money and build his list at the same time.

  5. Benjamin Cip on July 13th, 2009 12:44 pm

    Affiliate Marketing is obviously the best way to earn a passive income online. Of course you have to promote the right products, and preferably use the products before promoting them to make sure they are worth buying, not to put your reputation under the line.

  6. Online Business Ideas on July 17th, 2009 9:39 pm

    Affiliate Marketing is the best making money on the web fopportunity or the beginners. It is easy to start and usually the affiliate programs provide with the professional guidance and help.
    My online business is based on the Affiliate Marketing and it works great even if you don’t have much traffic.

  7. Income From Home on July 18th, 2009 5:28 am

    Hey George,

    I agree—as long as the affiliate is really familiar with the product they are selling. I recommend that the marketer actually purchase the product first and make sure it does what it says it does. Then, by offering a genuine review on the product, they can recommend it to their list. You should never compromise your integrity or your reputation as an online business person just to make a quick buck. Rana

  8. trevor on July 29th, 2009 12:34 am

    I have been in affiliate marketing for about 6 months now and I think it is going really well and offering me a lot of potential. I have been working hard and building links and a good site. It would be interesting to hear how you started out. I have been reading up on how other people make money with affiliate programs and what they think the best method of attack is it would be interesting to hear yours.

  9. George Manty on July 30th, 2009 12:24 pm

    Trevor,

    I think I have posted that on my site before, it’s definitely in the free ebook you get when you sign up for my newsletter. I will look at writing about it again in a future post.

  10. Bonuses on August 25th, 2009 7:44 pm

    I liked the article. I believe affiliate marketing to be one of the best ways to make money online. A lot of the affiliate sites out there are free to join and you can actually get paid per lead, which is a really great thing.

  11. money online on August 28th, 2009 8:58 am

    I have been with many affiliate program and one thing I learn that is to believe on the product that you trying to sell otherwise no matter good is the model you wont see the result. In other word be patience.

  12. Chris Peterson on September 23rd, 2009 4:37 am

    If you had a strategy of driving readers to your next post, its done quite subtly. But few more details would have engaged reader better with more details. What do you think, George?

  13. Gary Gregory on November 19th, 2009 2:21 pm

    Great post! Don’t forget about money generating keywords. Finding buyer hungry keywords is crucial! In someone’s mind, they are already ready with a buying decision if you target your words correctly. All you have to do is guide them to your page and, assuming it converts well, you will make the sale.

    My last website: http://www.googlesniper.info, was able to capitalize on a very popular product launch. The people who were looking for this particular system were very hungry indeed!

  14. Peter on April 21st, 2012 5:44 am

    Hi,

    Thanks for the tips. However, what do you think are the best products to promote?





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