Wednesday, June 9, 2010

Types of Affiliate Marketing

Affiliate marketing is a broad term that can refer to any on-line revenue share scheme which involves advertising and selling by different parties. It dates back to late 1994, when many e-commerce sites started employing the system and finding that it can produce fantastic results. Currently, affiliate marketing is a very serious player within e-commerce strategy.

When an affiliate joins in with an e-commerce merchant of some sort (be it a subscription service, a shopping site etc…) payment is received through referrals done from the affiliate’s website – done through the following methods

1) Pay-per click systems. Basically, the affiliate displays adverts on their site and is paid when a customer or internet user clicks on that link. Google's AdSense is a great example of this.

2) RSS feeds or blogs – even personal sites can sit under this category. Blogging is fast becoming a staple form of marketing and promotion, and affiliate marketing partners well with this form of online communication

3) Comparison sites and shopping directories – such as review sites or legit advertising sites

4) Loyalty sites – this is when a reward system is in place via a cash back or points back system (or charitable donations)

5) Coupon sites that focus strictly on marketing and promotions

6) Email lists – legit email lists to subscribers of the affiliate’s website etc – NOT spam

7)A registration path – when a person registers with a specific site, be it for a newsletter or subscription, offers from other companies are represented and advertised

8) Networks – there are many affiliate marketing networks. Some even function on a multi-tier or multi-level marketing sort of set up.

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If you want a really EASY way to make money using affiliate marketing, why not create a Blogger blog like this one!

Monday, June 7, 2010

Obtaining Online Sales With Affiliate Marketing

One of the most tried, trusted, and beneficial ways of increasing online sales is affiliate marketing. This is basically a revenue sharing system, where an affiliate is given a form of commission from a merchant, based on how many sales the affiliate has generated through advertising on his or her site. Affiliate marketing began just four years after the world-wide web was launched, and many successful e-commerce sites owe much to this simple yet effective method which is advantageous for all involved.

There are three types of affiliate marketing methods of payment – either pay-per-click (generated by actual clicks or referrals to the merchant from the affiliate’s site), pay-per-action or pay-per-sale (very similar, in that the affiliate receives payment, either a fixed amount or commission, based on the sales or subscriptions that have come through referrals or adverts on the affiliate’s site.) The last two methods of payment are generally preferred by merchants, due to many fraudsters taking advantage of the click system and setting up sites with forced clicks, pop-ups, adware, spam, false advertising and many other “black hat” techniques.

Affiliate marketing is not limited to only display-adverts on an affiliate site, but also comes in the form of email, blogs, rss feeds, content and niche sites, loyalty sites, comparison sites or shopping directories, and other forms. It is an extremely low cost, but highly effective form of marketing and advertising, presenting little to no risk for both the merchant and the affiliate.

Google's AdSense is a great example of an affiliate system, as used on this Blogger blog! Why not try it for yourself it's FREE!

Sunday, June 6, 2010

Affiliate Marketing, What is it?

Affiliate Marketing is a great way of promoting online business for a merchant, through affiliate programs and advertising that pay the affiliate (or publisher) a commission based on the amount of business their website brings to the merchant company.

It’s a form of revenue sharing or commission based advertising. It is very common now, and provides a great opportunity for both merchant and affiliate.

Affiliate marketing is the most cost effective sort of marketing there is, and is actually incredibly efficient. For this reason, many companies (especially those that started in the early days of e-commerce) owe a tremendous amount to affiliate marketing (amazon.com is a good example of this phenomena) and it has now become normal for many companies to include affiliate marketing in their plans.

There are three types of compensation methods that are associated with affiliated marketing. The first type is Cost per Click (CPC) or Cost per Mil (CPM.) Basically, the affiliate earns by how many clicks the advertising on their web-site, or by just having the advert published on the website. But because of click fraud and many other questionable tactics, CPC is no longer the general form used for affiliate marketing.

Generally, companies now either use CPA (Cost per Action) or CPS (Cost per Sale.) The first is based on how much the advert generates interest by the clicker to actually buy or register at the advertised site, the second is based strictly on sales. In other words, an affiliate is paid if the clicker actually purchases something on the advertised site.

For a great example of an affiliate system, see Amazon.com and their excellent "associates" program, which is entirely free to use. You can make money with Amazon.com using a Blogger blog like this one . . . it's REALLY easy!

Thursday, June 3, 2010

Affiliate Marketing: Cost Effective and Highly Efficient

The Internet has fast become an efficient and trusted way for companies to market and sell their products. One of the reasons for this has been the rise of “Affiliated Marketing” - which is when a website directs traffic to itself through adverts on other (usually related) websites.

Affiliated marketing either pays the affiliate through a pay-per-click program (such as Google's AdSense, where the affiliate receives money every time an advert is clicked) or a pay-per-sale program (the affiliate receives commission every time a posted advert on their site generates an actual sale or subscription.) Generally, the more common pay-per-sale program (also called cost-per-sale, or CPS) is the tried and trusted form of affiliate marketing used.

Affiliate marketing began just four years after the world wide web was launched, originally popularized by well known companies such as CDNOW or Amazon.com. Google’s Adsense is also a very well known type of affiliated marketing, but is not really considered as true affiliate marketing as the adverts usually centers around the theme of the website they are displayed (known more as contextual advertising.) Google does not also directly sell a specific product, but generates money in other ways.

Affiliate marketing is highly cost-effective, and in effect costs both the advertiser and the affiliate nothing, while having the potential of bringing in a very large form of income for both parties. While pay per click (or cost-per-click) mentioned above can present a risk to the advertiser, the cost-per-sale (CPS) system has very little or no risk at all for both parties, and is therefore preferred.

Blogger blogs (like this one) offer very easy ways for anyone to earn money using either one or both of these systems. AdSense is a form of Pay Per Click affiliate marketing, and Amazon.com is Pay Per Action. Both can be setup on any Blogger blog very easily. Why not try it for yourself?

Wednesday, June 2, 2010

Affiliate Marketing Advantages

The concept of revenue sharing has been around for a long time, long before the internet. But the idea of affiliate marketing has taken this concept to new levels of both performance, popularity, and ease of use, and become a staple form of advertising and bringing in lots of business for all types of companies who have a web presense.

Online merchants find affiliate marketing highly advantageous due to the fact that it presents little to no risk both for the merchant and the ‘affiliate.’ The way it works is that the affiliate earns a type of commission or fixed amount based on the number of sales the affiliate brings to the merchant, either through on-line links on the affiliates website – or through email, blogs, rss feeds and many other kinds of on-line communication.

Some merchants (only about 1% of affiliate marketing) use a cost-per-click remuneration system, which simply means that the affiliate earns every time an internet searcher clicks on an advert on their site or email. However, due to fraudsters taking advantage of this method (creating ad-ware, sending spam, or useless indexing sites) this form of remuneration is not preferred and becomes too risky for merchants to use.

Affiliate marketing also bears no cost on the merchant in the original set-up – in other words, it costs nothing to place advertising banners on affiliate’s sites, and there is only a cost if a lead or sale has been generated (which is advantageous for all.) Merchants also get to set the parameters, and decide on the incentive schemes. Thus, it is a very inexpensive (but highly efficient way) to grow a business.

It's a great system both for the merchants and for the affiliates who use it. Why not try it out for your self on a Blogger blog like this one?