subject: SEO Articles Directory - What Is Affiliate Marketing and Is It For Me? [print this page] SEO Articles Directory - What Is Affiliate Marketing and Is It For Me?
Affiliate marketing can be defined as a widespread method of promotion in which an affiliate is rewarded for every view, sale, and/or registration produced through the affiliate's efforts (depending on the type of affiliate program).
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It's similar to collecting commissions as a typical salesperson would. The more the affiliate sells... the more the affiliate gets paid. It's as simple as that!
Compensation calculations vary but are typically based on one of the following:
Pay-Per-Click (PPC) - a specific amount is paid for each visitor the affiliate sends
Pay-Per-Lead (PPL) - where the affiliate is paid for registrations or sign-ups
Pay-Per-Sale (PPS) - a specific commission per sale is paid to the affiliate
If your goal is to generate your entire income online you can drive traffic from your subscriber lists, your websites, and from other marketing methods to affiliate links.
What About Product Sales and Marketing?
You'll want to watch for great products and services with the potential to benefit your niche market and your mailing lists. To build trust and income, it's best to recommend only those products that will be of specific interest to them. It's a win-win situation for everyone that way.
When an affiliate is marketing any product, the cost of marketing the product is absorbed by the affiliate, so it's important to keep that cost in mind when promoting products. Typically the higher the percentage of affiliate commissions possible from any quality product, the more that product is worth promoting.
When a product is sold through the affiliate's personal link, depending on the service used, the total sale is divided up among the vendor, the affiliate, the taxing authority, the shipper (if any), and the payment processor.
It is common and expected that all affiliate details be spelled out in the affiliate sign-up process. However, you shouldn't be afraid to contact any vendor to clarify their affiliate program if you have questions. Often you can telephone or email for a fast reply. If they are not willing to answer your questions then you should stay away from them. There are plenty of other quality affiliates programs that would love to have you!
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Is a Digital Lifestyle for Me?
Many standard retailers offer very small commissions for affiliate sales while most internet marketers offer around 50%-75% of the sale for being an affiliate of their digitial product. This is why being an affiliate of digital products can be very lucrative in a relatively short period of time.
Although the number of affiliate programs for tangible goods and off-line services is rising, a completely digital lifestyle can be developed solely from digital or downloadable affiliate products that may never take physical form.