Affiliate marketing is based on revenue sharing. If you want to sell more of a product, you can offer promoters money through an affiliate program. On the other hand, if you have no product and want to make money, you can promote products that you connect with to earn income as an affiliate marketer.
The definition of affiliate marketing is: the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make.
There are two parts of affiliate marketing: the product creator and seller and the affiliate marketer. Therefore, affiliate marketing is the process of spreading product creation across different parties through revenue contribution. The creator, or merchant, is the party that creates the product. From entrepreneurs to big corporations, any business, small or large, can be a merchant in an affiliate marketing campaign. The publisher, or the affiliate, then promotes the business by attracting customers and providing value for the merchants product. This can be achieved by, for example, providing a review on a popular blog.
The company can then track the performance and base the marketers revenue off of that. Affiliate marketing had a draw for those looking to make money online. So how does the affiliate get paid? The answer isn’t so simple. There are a number of different ways the marketer can generate money:
- Pay per sale: In this program, the affiliate gets a percentage of the price when a consumers decides to purchase the product. The affiliate has to get the consumer to buy the product before they are compensated.
- Pay per lead: PPL programs compensate the affiliate based on leads. The affiliate has to persuade the consumer to visit the companies website and complete an action.
- Par per click: PPC focuses on redirecting the consumer to the merchants website. The marketer is then paid based on increased website traffic and consumer engagement.
So why should you become an affiliate marketer? You can make passive income all while working at home. As a startup business, this might even be the most cost-effective way of selling your products. The convenience and flexibility of being a freelancer and help you reach your goals and determine your own hours. The performance-based work can also be highly rewarding depending on how much hours you put in into it. Don’t underestimate the power of organic search!
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