How Affiliate Marketing Works
This article looks at how affiliate marketing works. An affiliate marketing business is where you, as an affiliate, promote and sell another person’s or company’s products and services online. The product owner then pays you a commission when you make a sale.
Affiliate marketing is one the easiest ways of starting an online business. There are a wide choice of products and services that you can sell, you don’t have to buy and stock or worry about payment systems or deliveries as the product owner takes care of all of these issues. Let’s take a look at how affiliate marketing works for many online entrepreneurs around the world.
How Affiliate Marketing Works
To start an affiliate marketing business, you first need to sign up to some affiliate programs – which are usually free. This is an agreement between you and the product owner or company that has the affiliate program. Your job is to send them customers who are interested in buying what the they have to sell and their job is to pay you an agreed commission on every sale you make.
When you become an affiliate marketer, the product owner will allocate you a unique affiliate ID, which you then use by inserting it into their website address. It may simply be a set of numbers and letters that you add on the the end of their existing website URL or the affiliate program may allocate you a completely unique website link. This is your unique affiliate link to the product owner’s website.
To start making money with affiliate marketing, you have to direct a potential customer to the product owner’s website with your unique affiliate link. The potential customer will be not see any difference on the website’s product pages. Each time a prospective customer uses your link to click through to the website any buys something, you’re paid a percentage of the value of that sale.
Keeping Track Of Your Affiliate Marketing Business
So how does affiliate marketing really work? How does the product owner know that it is you who has sent the customer to their website, especially if they have many different affiliates sending them customers for many different products (like Amazon or ClickBank)?
When a potential customer clicks on your unique affiliate link, your link is automatically embedded in a small file, called a cookie, that is saved on their computer. Cookie technology works for many things, for example when your computer “remembers” your password and user ID when you log into one of your online accounts.
When that visitor buys something from the website, the cookie shares your affiliate ID, so the product owner instantly knows that you are the affiliate and that any commission from that sale should be paid to you. Obviously, it is vitally important for your affiliate marketing business that always use the correct affiliate ID on all your links to ensure you get your rewards!
The one issue to be aware about with cookies is that if a prospective customer uses another computer to search again to buy the product, your affiliate ID will not be stored on that machine. It’s not a major problem though, and is certainly will not stop you from earning money from your affiliate marketing business.
Discover More About How Affiliate Marketing Works
Starting an affiliate marketing business is great way to begin generating income via the internet. If you take consistent action and keep an eye on market trends and demands, you’ll quickly reap the rewards. Success in affiliate marketing comes from a having solid marketing plan and clear direction. To learn how to start an affiliate marketing business, this FREE Presentation has been specifically created to teach new online entrepreneurs how to set up and start making money with affiliate marketing.
In part 3 of this blog-series, we’ll look at how you actually earn commission with an affiliate marketing business and what some of the affiliate marketing jargon means.