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How Does Affiliate Marketing Work? September 6, 2014

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Put simply, an affiliate program is an arrangement where an internet-based merchant website pays an affiliate website a commission to send it traffic.

The affiliate websites post merchant site’s links on their websites and will be paid based upon a particular agreement. The agreement is normally based upon the number of traffic that the affiliate website directs to the merchant site.

It also could be based on the number of people that an affiliate site sends who perform some action or buys something. There are some arrangements that pay based on the number of clients visiting the page that contains the banner advertisement of the merchant site.

How does affiliate marketing work?

An affiliate transaction contains at least three parties:
• The consumer or the customer• Publisher or affiliate site• Advertiser or merchant site

Advertiser
In the affiliate marketing realm, an advertiser can refer to a company that sells products such as airline tickets, electronics, car parts, or even clothing. Also, an advertiser could even be an insurance company that sells policies. In other words, you will be deemed advertiser if you are ready and willing to pay other people to assist you sell as well as promote your business.

Publisher
This refers to an individual person or a company promoting the service or product that is being sold by the advertiser and they do this in exchange for a commission. Also called affiliate sites, advertisers agree to work with publishers and will often supply the publisher with creative. These are usually in the form of banners ads, text ads, unique phone numbers or even links. The publisher then incorporates these into their website.

The consumer
This is the final element completing the affiliate marketing triangle. This is the party that actually sees the advert and then decides to make an action through clicking a link or via submitting their information. Whatever action they are asked to perform, it leads them to the website of the advertiser where they complete it. Completing that action is referred to conversion in affiliate marketing circles.

Cookies are critical

A cookie refers to a technology that works with the web browsers to keep information like login, registration information or user preferences. It is what happens when a website asks you to “remember” your online account username or password.

In the world of affiliate marketing, one important task performed by cookies is to remember the ad or link that a website visitor clicks on. Not only that. Cookies will also keep the time of click as well as the date.

Cookies could even be used to remember the type of content or website that you like most. There are many different kinds of cookies as well as uses but the type of cookie relied upon most in affiliate marketing is referred to as first-party cookie.

When a user goes to the website of a publisher, and click on the creative ad of the advertiser, the visitor’s browser automatically receives the advertiser’s tracking cookie. This cookie identifies the advertiser, the precise creative ad, the commission amount and the publisher.

Such data is kept within then information called ‘parameters’ and may even include more anonymous information used for attribution.

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Understanding Affiliate Marketing and Its Basics July 5, 2014

Affiliate marketing is among the simplest as well as easiest methods of making money through blogging. But just what is affiliate marketing and what does it mean?

Understanding affiliate marketing

There are basically two ways through which a person can make money on the internet. They include the following.1. Selling stuffs2. Selling or promoting stuffs belonging to somebody else and then receiving a commission from that sale.Our focus in this article will be on the option #2. It is a rough idea of what affiliate marketing is.

Definition

Affiliate marketing can be defined as a technique of marketing where you promote the products or services of another person through your website or blog. In general, this method of marketing involves an affiliate being rewarded every time that a visitor, client or a sale is generated for a business via an ad on your blog or website. Although compensation may be provided in many different ways, the concept remains largely the same: you are only paid if you generate business for your client. Affiliate marketing is an increasingly common method for business owners that are looking to get the most of their staying power on internet.

How it works:

1. Have a website or blog
You know a service or a product that you can recommend to your web visitors confidently. First of all, you will need to team up with the company that deals with this service or product.

2. Next thing is to market the service or product for the organization that is providing it. At this point, you qualify to be an affiliate.
For instance, let’s assume that on your website or blog, you bring to the attention of your readers the fantastic products or services being offered by company Z. This can be through putting a banner or a button on your website or writing an article about it. You also link the website of your product in your banner ad or website article. But you won’t be using just any ordinary link. The link must contain affiliate link. The affiliate link contains your unique and special ID.

Some affiliate programs are more lucrative than others, but it is important to understand that not all affiliate marketing programs are good. Some affiliate marketing programs focus on selling health related products while others focus on medical services.

3. Upon a leader clicking through the banner/button advertisement on your sidebar, they will be redirected to the website of the company that you are promoting. They will then have to make up their mind on whether or not to buy a service or a product.

4. The company that you are selling for can see that you are the one that referred the new client. This is because of a uniquely coded link telling them so.

5. For the merchants company to appreciate you for having referred a client to them, they will give you a decent commission. The commission is normally good, with some companies offering even 50% commission.

Conclusion

Affiliate marketing is one of the few genuine methods to make money on the internet. It is very easy to start since you do not have any stocks to put in your shop. It is a perfect home based business that offers genuine money making opportunities for people. There is no risk since you do not buy the stocks to sell.

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