Making Money Online: Affiliate Marketing

Affiliate marketing is an arrangement where two parties, in this case, you and a merchant, share revenue from the sale of a product. You make money as an affiliate marketer by directing potential customers to merchants' online stores by posting advertisements or links on your website, blog and newsletter. Depending on the agreement between you and the merchant, you are paid a percentage of the sales you generate.

There are two ways you earn money:

1.Pay-per-sale

Through this arrangement, a commission is deposited to your account each time a sale is made as a result of an ad or link you post. The amount depends on the product and the percentage of the commission; it can be anything from a few pennies to tens of dollars.

For instance, let's say you recommend a new book or videogame to your readers. If you post a link to the product on Amazon and someone buys it, you receive a commission.

2.Pay-per-lead

You are paid a pre-set amount each time a potential customer signs up at the merchant website as a result of your ad or link. Again, rates vary from a few cents to a few dollars.

Before getting started with affiliate marketing, understand one thing: this is not a get rich quick scheme. It takes analysis, effort and patience to succeed. But you can generate decent money by following these tips:

1.Select products you love

Choose products that you are passionate about. It will inspire you to market them and register greater exposure and sales. If you love outdoor activities like hiking, biking and mountain climbing, then you might become an affiliate marketer for sports gear and adventure destinations.

2.Select products that you believe in

It can be next to impossible for you to persuade people to buy a product or service that you personally do not believe in. Use it yourself before marketing it. Personal experience helps you know a product inside out, making your endorsement more credible.

3.Get a website

While almost every affiliate marketing training says that you do not need a website to be an affiliate marketer, the truth is that most successful affiliates use their own websites to promote and market products.

4.Learn keyword research

You need to learn at least basic search engine optimization (SEO), since most people will use search engines to locate your site. Effective SEO drives traffic to your site. A good set of keywords is the foundation of a successful affiliate marketing campaign.

5.You are not selling, only helping people locate products

Focus your energy on promoting and marketing a product. Leave the actual selling to the merchant. Concentrate on helping merchants get their products seen by potential customers.

1.Commission Junction

This is the largest affiliate program provider (APP). It manages affiliate marketing for hundreds of companies. After signing up with CJ, you can asses the companies, their product offerings and the commission structure.

All the commissions you earn from merchants are pooled together in one payment made on a monthly basis.

2.ClickBank

This affiliate marketing program has been around for more that ten years, selling digital products in more than 200 countries. As an affiliate, you can promote thousands of products with the potential of earning up to a 75% commision.

3.Linkshare

Linkshare works with more than 600 brand name merchants, including AT&T, iTunes and Walmart. The site also offers educational information to help increase sales.

Affiliate marketing is not easy, but it can be done successfully with the right mix of products. You need to work hard because there is a lot of competition out there. With diligence, though, you may be happily surprised by the size of your monthly earnings.

Last update: October 25, 2010