How Does Affiliate Marketing Work, and How Do People Make Money From It?

In 1994, CDNow.com invented a new marketing strategy called “affiliate programs”. In 1996, two years after the initial invention, Amazon.com pioneered the affiliate program. So what exactly is it? Well, affiliate programs, also known as “partner programs” or “associate programs”, are a basic way for online sites to create a flow of revenue by directing online traffic to other websites. In addition to making money for a website, this is also a great way for the website to increase the amount of traffic that walk through its online doors.

THE TYPES OF AFFILIATE MARKETING PROGRAMS

When it comes to marketing online, affiliate marketing has become one of the most popular, if not THE dominant form of marketing that is used by websites all over the globe. And since it has become so popular over the years, the marketing strategy has grown into four different types of marketing programs. These four strategies are called: “Pay-Per-Click”, “Pay-Per-Impression”, “Pay-Per-Sale”, and “Pay-Per-Lead”. These four programs have revolutionized that way companies have approached the world of marketing, and look for these for these four programs to expand even further over the next couple of years.

PAY-PER-IMPRESSION

This model is not as commonly used as some of the other programs that are listed below. It used to be one of the most popular, but with the passing of time and the invention of easier, more profitable techniques, this one has taken a bit of a back seat. In this method, an advertiser will pay the affiliate a certain amount of time that their ad is displayed on another, more popular website.

PAY-PER-CLICK

Just like the method we spoke of above this one, pay-per-click was a lot more popular during the dot com era at the end of the 1990’s, but it has since taken a back seat to the two we will speak of below. In this model, an advertiser will pay the affiliate a certain amount of money every time an Internet user clicks on their displayed advertisement.

PAY-PER-LEAD

In this model, an advertiser will pay the affiliate a certain amount of money determined on the number of leads the advertiser gets. These leads can be tracked by having the Internet user fill out a survey, sign up for a trial offer of something, or complete any sort of action set forth by the affiliate.

PAY-PER-SALE

In this model, it Is really easy to grasp from the title. The affiliate will get paid a certain percentage of whatever the affiliate makes off of a product that was discovered through the affiliate’s website. This model has really been taking off over the past couple years as more and more companies are beginning to sell their products and services online. Look for future online marketing campaigns to take off of this model than any of the other models that are out there, as there is a potential to make a lot more money through this method.

HOW TO MAKE MONEY OFF OF AFFILIATE PROGRAMS

Making money off of one of these four affiliate programs is quite easy if you understand how to set it up. First and foremost, you need to find the affiliate program that is best for you. Out of the four options listed above, which one do you feel is best suited for you? To answer this question, you need to look at what product or service you offering. If you are selling a book, one option may be better for you than another, whereas if you are selling bigger products, another program may be better for you than the other. Determine the one that fits your product and go for it.

From there, you need to find the website that you would like to sign up with. You do not need to limit yourself to one, but you should always make sure that whatever you sign up for you, you can afford it. In addition to affording it, you need to also be able to make profit off your product and services.

OVERALL

In the end, making money off of these types of services is very simple. It does not matter if you are looking for quick money or a larger exposure on the Internet, either way it can pay off in a major way for you and your business.

Home