The ‘Why’ and ‘How’ of Affiliate Marketing
Affiliate marketing is said to be one of the most effective ways to earn money online. This type of marketing uses the principles of traditional marketing, only applied online and with more innovative strategies. Basically, affiliate marketing is an approach wherein the product or service is sold by paying people through commission, as they promote and sell a company’s product/service. In other words, affiliate marketing is a commission-based system that increases sales as the number of transactions increase.
Why Affiliate Marketing?
There are a lot of benefits that a business-minded person like you can benefit from affiliate marketing. Some of these include:
1. No hassle. With affiliate marketing, you don’t have to create and develop your own product; the product of the company is already there and all you need to do is to promote it effectively. You know how much money it costs to come up with your own product; but if you sign up for affiliate marketing, you will see that the product you are to endorse would feel as if it’s your own fruit. Just promote the product, manage the transactions, and make sales!
2. Work At the Comfort of Your Home. Let’s face it; “traditional” work can be tiring not because of the task you have to do, but the heavy traffic you need to go through every single day. With affiliate marketing, you can promote the product with a mouse on one hand and a cup of coffee on the other. With affiliate marketing, you can make the promotion activities home-based, and managed your recruits (affiliates) through the Internet. You can also conduct webinars and participate in forums related to the product you sell.
3. Earning While Sleeping? Possible! Because you can work at home through the Internet, you can expect your promotional websites and Web pages to be available 24/7, such that many people would learn (and buy) your product. With different time zones around the world, you can anticipate making sales while you are soundly sleeping or when having your vacation, that is, if your promotion is powerful enough.
4. Minimal Costs. Compared to traditional and more-offline marketing approaches, affiliate marketing makes it possible for you to set up your business with only a hundred bucks in your pocket. You may start with attending seminars conducted by affiliate marketing experts and successful marketers. After this, you may begin by owning a web domain and applying for web-hosting service, then start encouraging people to join your affiliate marketing program. If you don’t have your own strong product to promote yet, why not affiliate to a company of your liking, and then recruit new affiliates under your management?
How affiliate marketing Works
Basically, affiliate marketing makes use of a link called URL (e.g.www.philkrnjeu.com/affiliates/a.php?aid=212) that is only specific to an affiliate, so as to keep track of the sales he or she makes. You sell a particular product or service, and ones you people buy the product through your URL, you earn through commissions, as defined by the company. For instance, if a customer buys a product worth $100 using your URL, and the company designates a 10% commission rate, then you earn $10 per product sold. What makes affiliate marketing much better is that you can earn more if you recruit more people under you (also called your downlines). You also earn a percentage from the sales they make.