Introduction – Exactly what is Affiliate Marketing
Affiliate marketing is a method used to market which is performance based and generates profits for businesses and for affiliates. In this business model the business rewards affiliates for every new clients or sales brought into the business.
For businesses, affiliate marketing is an excellent way to generate sales and more revenue. As it is performance based it means you as the business reward affiliates for each visit , click or sale depending on the agreement you have together.
Businesses make a huge amount of money from utilizing affiliate marketing in their business.
As an affiliate you can earn a commission for sending traffic to someone else’s product or service. Affiliate marketing works using four roles as shown in the image above and details below.
- The Merchant who is also the retailer or major brand.
- The Network (sometimes referred to as the marketplace) consists of the offers from where the affiliate chooses. This is also from where the payment is made.
- The affiliate (who is also sometimes known as the publisher) is the one who does the marketing work
- Finally the customer purchases the product or service and the profit is shared by the Merchant and Affiliate.
Affiliates use advertising methods to bring customers to the merchant and they are rewarded for their efforts. These advertising or customer acquisition methods can include:
- Search Engine Optimization (SEO)
- Paid Search Engine Marketing
- Email Marketing
- Content Marketing
- Display Ads, and more
Why Affiliate Marketing?
There are many mutual benefits and here are the main factors why merchants love affiliates and affiliates love affiliate marketing.
- You Control The marketing
- The initial Startup Cost is Low
- Businesses can Generate New Profits without New Products by Gaining New Affiliates
- Affiliates Can Make Money by Adding the Merchants Products Without Having Your Own Product.
- The workload is shared as the merchant takes care of the shopping cart and logistics
- Both the Affiliate and The Merchant Benefit from The Others Success
So when a merchant has a very successful service or offer this makes it easier for the affiliate to generate sales…. and when the affiliates generate more sales the product or service becomes even more successful, so you can see how it is very much a mutual benefit situation.
There is a lot of money to be be made in affiliate marketing but very few can productively teach it….
If You would like to learn in detail how YOU can make money from affiliate Marketing as a Vendor and/or as an Affiliate then I highly recommend you check out the AMBASSADOR PROGRAM FREE PRESENTATION HERE.
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