Part 1 ---- Making Money from Affiliate Marketing
This section looks at how you can make money by including affiliate marketing on your website; and how it compares to running general adverts.
How Does Affiliate Marketing Work?
Affiliate marketing used to be full of websites trying to get advertising for next to no cost; but it has moved on in leaps and bounds since then. Many affiliate schemes are professionally managed with good incentives to promote them.
Payments
The basic idea of affiliate marketing is online advertising that pays on results; you place the adverts on your site, and sales or enquiries that go through your site are added up every month. This usually works on one of three payment bases:
Cost Per Sale – You receive a fixed payment per sale, or one of a set number of payments depending on the product sold.
Cost Per Lead / Cost Per Enquiry – You receive a fixed payment for every enquiry you generate, this usually means a customer providing their phone number to be called back, or registering their details to be contacted by the company.
Percentage of Sale – You receive a percentage of every sale recorded through the ads on your site. The percentage you receive will depend on what you are advertising.
For more detail on the types of payment used in online advertising visit Pricing of Your Online Advertisement.
Direct or Networks
There are two different types of affiliate campaign you can sign up to:
Direct campaigns are where you link directly to the company; they manage the tracking of results, and payments are made from them to you. E.g.: Amazon
The other type of affiliate campaign is through an affiliate network; a company that looks after and tracks the campaign on behalf of both the advertiser and yourself. E.g.: Tradedoubler, Buy.at
From here on these two will be referred to as ‘Direct’ and ‘Network’.
Article Index
1. How Can You Take Advantage of Affiliate Marketing?
2. Affiliate Marketing - Advantages and Disadvantages
3. How to Get Started - Making Money With Affiliate Marketing
4. Promoting Your Business With Affiliate Marketing
5. Promoting With Affiliate Marketing - Advantages and Disadvantages
6. How to Get Started - Promoting With Affiliate Marketing
