If you are new to the professional Internet business field of affiliate marketing, then you are no doubt wondering what affiliate marketing is all about. In simpler terms, it is marketing and promoting another company’s products/services on the Internet. You, the professional affiliate marketer, promote through whatever medium is available to you (your ezine, blog, email, online advertising, etc.), which then sends traffic and customers to another company’s website, who then it does all the work: developing, selling and supporting the actual products and/or services; close the sale; process orders, receive payments and make deliveries; etc. — for the paying customer. You, as the marketer and source of that business, are paid a commission for your work. That is!
The entire trade deal is essentially a revenue share. The company that provides the product or service being sold is usually called an affiliate merchant, and they share the revenue it generates with you, the affiliate marketer, to send business your way. In most cases, the affiliate marketer drives that business through various forms of legitimate advertising techniques in a wide variety of avenues and online platforms.
Keep in mind that the affiliate merchant usually does not pay anything for “marketing” and promotion until after a sale has actually occurred. In this way, the trader can minimize both risk and expense. Theoretically, the affiliate can be rewarded more handsomely for taking that marketing risk and expense. However, since the affiliate marketer does not need to bear the risk, investment, and expense of developing and supporting a product/service and managing a sale, the relationship is largely seen as a win-win arrangement, in which each part focuses on the part of the business that they are good at and interested in.
Affiliate income tracking, calculation and payment
How the affiliate marketer is essentially paid for their work is completely up to the affiliate marketer. In virtually all cases, the deal is managed entirely through an automated system, with the merchant using Internet server-based software that gives an affiliate marketer a unique ID or link code that the marketer must use to identify all the traffic and clients it sends. to the merchant. This is really the only way the merchant can properly identify, credit, and compensate the right affiliate for any business generated.
In some cases, an affiliate merchant uses the resources of a much larger affiliate network service (such as Commission Junction, LinkShare, etc.) to run their affiliate program. Some other merchants, on the other hand, choose to run their own internal affiliate system, keeping their program separate from others. However, in virtually all cases, the basics of how an affiliate program tracks and calculates affiliate commissions follow what is outlined above.
You usually specify the financial terms in advance (payout periods, minimum payout thresholds, when and how the money is paid out, etc.), whether you use the services of a third-party service or run your own trading program internally affiliated. How an affiliate is paid will ultimately depend on these predetermined details, and can run the gamut from receiving payments online through services like Paypal, transferring funds directly to an affiliate’s bank account, to printing a physical check and mail it directly to the member. .
While there is obviously a level of trust in the merchant involved in this arrangement, it works because it not only benefits the affiliate merchant to maintain a good working relationship with their affiliates to grow their business and ensure their continued success, but also the affiliate merchant community. Professionals are fairly close-knit, with extensive communication channels promptly reporting any turbulence and negative business dealings. On top of that, affiliate programs running on third-party network services offer an additional layer of protection and trust for the affiliate, and the networks help ensure that all transactions are properly tracked, calculated, and compensated. This is one of the reasons why many professional affiliate marketers often adopt the policy that they will only work with affiliate programs that are managed through these third party affiliate network services.
Affiliate Program Selection
You, as a professional affiliate marketer, are free to choose any affiliate program you want to join and market to. In other words, you essentially choose which products and/or services you will promote (through your blog, website, ezine, advertisements, etc.). It’s not an easy decision, as your revenue is greatly affected by how you match your total “offer” to your “audience” or “market.” That, however, is essentially your job and is part of what you, as an affiliate marketing professional, are heavily compensated for.
In many cases, the affiliate programs you choose are usually determined by your pre-existing markets and audiences. For example, if you already have a gardening blog, then obviously the programs you would look for would be gardening related or ones you have determined. would appeal to the demographic audience your gardening site attracts.
However, if you are approaching this affiliate marketing business as a pure marketer, where the decision on how to market a product or service would largely depend on what you actually select to promote, the way you select an affiliate program may be based on many different factors.
Some professional affiliate marketers, for example, choose programs based on the size of the commission (high payouts per sale) or the size of the market. These are business decisions that you have to make, again, part of what you get paid. However, here are some beginner tips that can help you get started.
Choose products/services that interest you personally. If you’re interested in gardening or golf, for example, focus on specific products/services for those markets. The plain and simple truth is that it is much more difficult to promote a product or service that you really couldn’t care less about.
Choose products/services that don’t embarrass you and that you are comfortable having your friends and family associate with you. For example, even though it is quite lucrative, some professional affiliate marketers are unable to promote dating sites and services out of embarrassment and inconvenience.
Choose products/services that you are already familiar with and fully understand. Even if you’re not all that interested in cars or travel, for example, you may already know more than enough about the products and services in those particular markets that you can actually sell in those niche markets.
Select the affiliate programs that give you the best sales support. This only stems from prior research, of course, but it’s something you should do anyway. Sales support referred to here are things like training, advertising materials and resources, extensive product information, etc. Obviously, the more tools you are given to sell, the better your chances.
Remember: being a professional affiliate marketer means you’re in business. Your business. Your success is ultimately determined by your decisions and actions. Good luck.