Affiliate marketing is one of the most popular ways people
make money online. Affiliate marketing is an advertising model where a company
pays compensation to third-party publishers to generate traffic or leads to the
company’s products and services. The third-party publishers are referred to as
affiliates and the commission fee incentivizes them to find ways to promote the
company. It is a strategy where an individual partners with a business in order
to make a commission by referring readers or visitors to a business’s
particular product or service. But that really is quite a simple explanation.
To be really successful at making money with affiliate marketing there is a
little more to it.
So Affiliate marketing is a performance-based marketing
program, where an external partner is rewarded a commission for delivering a
specific result to a merchant or advertiser. The result is often a valid sale,
however it can also be a completed lead form, a new free trial user, or even a
new newsletter subscriber. Affiliate marketing predates the internet, but it is
the world of digital marketing, analytics and cookies that have made it a
billion-dollar industry. A company running an affiliate marketing program can
track which links bring in leads and, through internal analytics, see how many
leads are converted into sales.
And the myth that affiliate marketing is a scam or offers a
low value source of traffic and sales is simply not true. The reality is that
affiliate programs can be as high value as those running the affiliate program
make it. Affiliate marketing is an ideal home business because it doesn't
require much money to get started, and you don't have produce, stock or ship
product inventory, or deliver a service. You're essentially paid for referring
new clients and customers to other businesses.
In exchange for that effort, however, a company can access
motivated, creative people to help sell their product or services to the world.
Now most affiliate programs have strict terms and conditions on how the lead is
to be generated. There are also certain methods that are outright banned, such
as installing adware or spyware that redirect all search queries for a product
to an affiliate's page. Some affiliate marketing programs go as far as to lay
out how a product or service is to be discussed in the content before an
affiliate link can be validated.