Affiliate Marketing works by having you refer customers to businesses. But unlike almost all other Marketing, the Affiliate Marketer is only paid when a customer buys the product (the payout happens when a Prospect ‘converts’ into a Customer). Only when the customer makes a purchase does an Affiliate Marketer get paid. They get a commission, a percentage of the sale price which is part of the cost to the end customer. The business who made the sale because of Affiliate Marketing, pays money for bringing them business. Payments are usually made on a monthly basis.

Affiliate Marketers do the marketing of someone else and use their websites as referral engines. Yet they don’t actually sell any product. In addition, they don’t directly collect any money either. Affiliate Marketing programs are sources of revenue and off-brand promotion for retailers and distributors. Affiliate Marketing can be the largest part of online revenue and has on average the largest return on investment for businesses of any on-line Marketing Channels.

Why are businesses willing to pay so well to Marketing Affiliates? Because it’s performance-based, they are buying conversions not just clicks. They are getting paying customers, not just visits that may or may not turn into a buy. This gives Affiliate Marketers a huge advantage over other marketing channels, (such as PPC, where it can cost a lot of money and no guarantee of producing any actual sales).


There are many products available that work for affiliate marketing programs than there are with traditional retail sites or even Drop-Shipping. For example, Amazon has an affiliate program; that gives some indication as to the vastness of quantity and variety of potential Affiliate Products out there. Affiliate Marketing also includes products for which the others won’t or can’t offer through their business model such as completely digital products, such as e-books and other digital downloads.

Just as there are many different types of products and services, there are many different advertisers, and they offer many different types of affiliate programs. There is a Search Engine Affiliate program, where Marketing Affiliates are placing text links or banners to their advertisers, (these types are usually paid out as a pay-per-click fee). There are E-mail List Affiliates who promote e-mail newsletters. They are usually paid when a person joins the advertised opt-in e-mail list. Overall, being a Marketing Affiliate of any merchant usually means the Marketing Affiliate is paid a commission per sale on the advertiser's Web site. Of the range of types of Affiliate Marketing pay-per-click affiliate programs (PPC) are paid the least amount. The reason is two-fold, unlike a commission that’s paid only on a sale for the advertiser ; PPC Affiliates are paid on the amount of visitors who may become customers, and PPC Affiliates are often paid for large volume such as per thousand clicks (CPC).

Affiliate Marketing is performance marketing. It’s on sales performance that Affiliate Marketers are compensated. Marketing Affiliates while not technically employed by the advertiser (those whose products or services they promote) the commission compensation models applied to Affiliate Marketing is very similar to the ones used for an in-house sales staff or internal sales department.

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