May
15

What is Affiliate Marketing?

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What is Affiliate Marketing

What is Affiliate Marketing

Affiliate marketing is essentially selling somebody else’s product and receiving a commission on the sale. The business model of receiving a commission on the sales made is almost as old as time and is basically is what affiliate marketing is.

Advantages of affiliate marketing

The biggest advantage of affiliate marketing is that you are partnering with an established business. Your affiliate partner will typically handle:

• stocking the product,

• delivering the product

• collecting payments

• customer service

• product returns

These are very good reasons why affiliate marketing is one of the easiest and most popular ways to earn money online.

Probably the largest and most famous affiliate marketing program is the one run by Amazon. Many people don’t realise it, but I read recently that 40% of all products sold on Amazon.com are sold by affiliates. A vast number of companies in fact run affiliate programs where they pay you commission on your sales of their products. Several of the large affiliate programs you may have heard of our Amazon, Commission Junction and Clickbank but there are endless other affiliate programs.

Amazon affiliate example

affiliate marketing

affiliate marketing

Let’s look at affiliate marketing using Amazon as an example. Becoming an Amazon affiliate is simply a matter of registering with the Amazon website in the country that you will sell products. For example if you want to sell products to the American market you need to register with Amazon.com. If you also want to sell products in another country such as the United Kingdom you would need to register with Amazon in the country. To register UK Amazon website as an affiliate you would need to register on Amazon.co.uk as an affiliate. Signing up as an Amazon affiliate is really easy, but you do need to register with Amazon separately for each country that you want to sell to.

One of the reasons that Amazon is so popular with affiliates is how easy it is both to register as an affiliate how easy it is to set up the sale of Amazon products on your website.

Once you become an Amazon affiliate you have access to the entire vast Amazon product range. You can sell everything from herbal remedies to diamond rings from your website as an Amazon affiliate.

Becoming an affiliate brings instant Amazon trust and credibility to your website. You’re effectively trading on the Amazon name and brand. People might be very reluctant to buy from a site such as “Joe’s Drill Store” or “Jane’s Dress Shop” if it meant making payment to an online store the customer had never heard of. If on the other hand Joe’s Drill Store sells drills as an Amazon affiliate the site is actually sending customers to Amazon to make the purchase. This is a huge advantage in terms of credibility and trust, because most people know and trust the Amazon brand.

Amazon 24-hour commission cookie

As an Amazon affiliate, not only do you receive a commission on every item you directly sell you also receive a commission on anything else that the customer that you have sent to Amazon goes on to buy from Amazon within the next 24 hours. So quite often you may find yourself receiving commission a wide range of items that aren’t even mentioned on your site. I really enjoy looking at all the items that I’ve sold my Amazon affiliate sites. Often these items are completely unrelated to my websites and include everything from water filters to e-books, but the sales were the result of me sending traffic to Amazon so I get paid commission.

Disadvantages of affiliate marketing

Despite all the advantages that there are with being an affiliate, there are also disadvantages with affiliate marketing.

You only keep a percentage of the sale

The biggest disadvantage of course is that you have to share the sale with the affiliate provider. For some Clickbank products your share of the affiliate sale may be as high as 50 to 75%. This high affiliate commission payment is quite typical of information products like e-books and study courses. Affiliate commissions for sales of physical products, everything from toasters to televisions is usually much, much lower. Affiliate commissions for physical products typically vary between 5 and 10%. I remember getting really excited when I sold my first thousand dollars products as an Amazon affiliate, but my commission rate was only 6% so I ended up earning just over $60 out of the $1000 worth of products that I’d sold.

Competition

Another disadvantage of being an affiliate is competition. There may be hundreds of other affiliates all selling exactly the same product. You will be in competition with all these other sellers. Trying to complete affiliate in competitive market, such as diet example can be very difficult because this competition. Of course these competitive markets can also be very profitable if you’re successful. My tip however would be to start out as an affiliate in a much smaller, less competitive market.

The affiliate marketing business

Having access to the vendor’s products, sales system, and promotional resources can make affiliate marketing a lot easier than having to design, create and market your own product.

There are certainly many people making very good incomes online working as affiliates. The affiliate marketing business, however, is exactly that…. it is a business. Like any other business to be successful affiliate marketing requires hard work and effort.

My affiliate marketing experience marketing experience

I operate Amazon and other affiliate stores in a number of different markets ranging from health to ladies perfume. Without Amazon’s vast network, products and systems I wouldn’t have been able to make that important first thousand dollars in sales. I am still making sales from my Amazon affiliate sites and Amazon affiliate sites are definitely one of the easiest ways to start making money online. But I’ll show you what I now do to keep a much higher percentage of my sales revenue. Sign up on this page for my free Internet marketing report and newsletter and I will show you exactly what I’m doing now to earn 50-100% commissions. Yes, it is actually possible to sell other people’s products and legally and morally keep 100% of the profits. I’ll show you how and why this works and how you can maximise your profit as an affiliate.

Regards,
David

NewInternetMarketingAcademy.com

 

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