There are so many concepts thrown at affiliate marketing, however, all seems to have the same meaning. Affiliate marketing has become a HUGE industry today. It is a revenue sharing partnership between the merchants and the affiliates.
For many years, affiliate marketing has proved to be a cost-effective and measurable method of generating long-term success.
Affiliate Marketing has proved to be a cost-effective and measurable method of generating long-term success.
It has become popular among Internet users who are looking for ways to make extra income from their site. Every day, over tens of thousands of people join affiliate marketing to make money online. However, in many cases, these ‘newbie’ affiliates do NOT fully understand the affiliate business, and hence, make costly mistakes!
As a result, affiliate marketing has been mostly misunderstood.
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Most Common Misconceptions about Affiliate Marketing
- One of the common misconceptions associated about affiliate marketing is about “selling”. Yes, “selling” is a vital part of affiliate marketing business, and its central operation.
- Another misconception associated with affiliate marketing is “advertising”. While advertising is also a crucial marketing step and not to be underestimated, advertising like selling, is only a small part of the many important functions of marketing.
In affiliate marketing business, an affiliate is paid compensation for every referral (visitor, subscriber and/or customer) sent to the merchant’s website through his/her efforts.
Or, the compensation may be made based on a certain value provided from each visit.
From the merchant’s point of view, the most attracting aspect of affiliate marketing is that no payments are due until the affiliates deliver results.
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1) Affiliate Networks
Affiliate marketing is usually run by a group of affiliates, also known as the affiliate networks, which are composed of a group of affiliates and the merchants.
Each has their own special roles!
For example, the affiliate network acts as a third party between the merchant and the affiliates. The network also offers marketing materials to affiliates for the promotion of merchant’s offers and goods. The affiliate network also collects commission fees from the merchant and pays the affiliates who are associated with the affiliate program.
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2) The Merchant
The merchant is a website owner or a business owner who wants to take advantage of ‘performance-based marketing.’ By joining an affiliate marketing program, the merchant benefits in many ways. First, the merchant looks after and runs the affiliate program.
Had not there been any affiliate marketing program, the merchant would have to research and find interested affiliate websites to make sure they are a good fit for that particular website. This is because finding the ‘right’ fit for their merchandize/business would be KEY to their success.
Through affiliate marketing networks, the merchant has easy access to markets and customers without him spending too much time searching for.
The banner ads on affiliate sites are not annoying to the site visitor. In fact, it might generate interest for that particular product and drive the potential customer to the merchant’s website.
The merchant also gets to decide how much he is willing to pay for each sale that is due from a visitor sent from an affiliate.
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3) The Affiliate Marketer
The affiliate marketer also receives many benefits by joining an affiliate marketing program. The affiliate is a web site owner who promotes the products and services of one or many merchants as well as their affiliate programs.
For affiliates, the affiliate marketing can generate a full-time income. But making a full time income through affiliate marketing is not an easy talk to do. The affiliate needs to know about the merchant, the commission amount he/she will get paid, the payment method that will be used, and time involved in that particular contract.
The affiliate also has to stand for the merchandise his/her visitors would be most interested in. For example, if his/her site has a user base of mainly stay-at-home mothers, then online job openings such as surveys would be a great match for them. This group would also love direct links to children’s products and informational sites.
Merchandisers often offer ‘targeted’ best-selling items and personal support to their affiliate. They often offer sales promotions that will not only benefit the merchandiser, but also the affiliate.
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Conclusion: What is Affiliate Marketing
Affiliate Marketing is a great platform for both the merchant and the affiliate. If they work together, they can become advantageous to both.It is the easiest and the most inexpensive method of starting an online business. Not to mention, you can be set up and running your online business within few days (1-2 days).
However, the key to success in affiliate marketing is how to get more traffic to one’s site and offer unique products than all others are promoting.
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