affiliatemarketingknowledge-blog

[affiliatemarketingknowledge-blog]

The Hidden Mystery Behind Online Affiliated Marketing

Online Affiliate Marketing is really a revenue sharing venture between an internet site owner and an online merchant. The website owner will place advertisements on his websites to either help sell the merchant's products or to send potential customers to the merchant's website, all as a swap for a share of the profits.

Affiliate Marketing Program 

An affiliate marketing program may also be called an affiliate program, but additionally might be known as a pay-for-performance program or an associate program. An affiliate program is an advertising tool for the e-business that operates it, called merchant or advertiser and a way to obtain revenue for the e-business that participates inside it, called an affiliate or associate or publisher.

There are three approaches to earn money through affiliate marketing:

1) Pay per Click or Cost-per-click affiliate programs: Every time a potential consumer leaves the Affiliate Marketing  by "clicking" on the web link leading to the merchant's website, a specific amount of money is deposited in the affiliate's account. This amount could be pennies or dollars depending on the product and amount of the commission. 

2) Pay per Lead or Cost-per-lead affiliate programs: The merchant pays the affiliate a group fee for every visitor who clicks through and takes and action at the merchant's site, such as for instance completing an online survey, registering at the site, or opting-in for e-mail. 3) Pay per Sale or Cost-per-sale affiliate programs: Every time a sale is made consequently of advertising on the affiliate's website, a portion, or commission, is deposited into the affiliate's account.

The Amazon Story The world's biggest bookstore has one of the very most successful samples of an affiliate program (called their associate program). Amazon now has above 1 million affiliates! That is over 1 million websites actively promoting their products every single second of each and every single day. Amazon generates over 40% of its revenue through its affiliates program. That is over $3 billion in revenue every single year! As another (somewhat humble by comparison) example, Zeald generates over 50% of its revenue having its own unique affiliates program. Admittedly, nearly billions of dollars but that is definitely an incredible number of dollars of revenue every single year.

Thousands of diverse e-businesses operate affiliate programs: E.g. barnes&nobale, dell,1-800-flowers, Rackspace managed hosting etc.

Affiliate Programs as a Marketing Tool 

The two major Advantages to merchant 

1. Tie marketing effort right to a lead or sales. 2. The merchant pays just for results. 

The two major Advantages to affiliate 

1. Additional supply of revenue for affiliate who also sells products/services 2. Primary supply of revenue for affiliate who offers entertainment or information Two Approaches to Operating a Successful Affiliate Marketing 

1. Acquire an enormous and affiliate membership. e.g. 

The Amazon associates programs have over 1 million members as diverse as: 

- RVPart - Sells parts for recreational vehicles and motor homes. - Dilbert - Site for view cartoons, play games, send electronic greeting cards etc - Books for Managers - Site for business reviews and lists of the currant top-selling business-related books provided by Business week, The New York Times, the Wall Street Journal, USA Today, and other publications. - HaperCollins - Its site to advertise its authors and their books. However, like many book publishers. HaperCollins sells its books through bookstores and not right to the public. 

2. Acquire a smaller number of highly effective affiliates which have a top level of website traffic and offer web site content, products and services which can be directly linked to the merchant's products and services.

Affiliate Programs as a Revenue Source Participating within an affiliate program and then getting probably the most out of your participation involves: - Selecting the correct merchant and affiliate program for your e-business - Understand the terms of the affiliate agreement - Add custom links to merchant's site from affiliate Web pages - Build traffic at affiliate site to increase click-troughs to merchant site.

Top 10 Techniques for Choosing the Affiliate Program That Is Right for You

1. You have to recognize an item or service for which there's a need. The merchandise must be such that you would love and enjoy promoting it. You might start with looking for "Affiliate Programs" in the Search Engines. 

2. The merchandise or service must be strongly related your website. 

3. It is always a good idea to join an affiliate program that is long standing, safe and secure and has a good reputation in the Internet world. This is often easily verified from the Better Business Bureau or other similar organizations. Visits to Forums and Discussion Groups may also provide you with lots of useful information. 

4. Most affiliate program providers supply a commission of 5% to 50%. The commission you earn for the sale of an item is your primary income. So while choosing an affiliate program you need to study the commission paid out and choose an application that pays at least 35% for you to run your business successfully. 

5. There must be a proper tracking system in destination for a record all the clicks and sales made through the writing links and banners placed on your website, e-mails and other advertisements. 

6. One important factor that is often overlooked may be the "hits per sale ratio ".This indicates how many hits that have to be made to a Text Link or Banner to generate a sale. This will give you an idea regarding simply how much traffic is necessary before a purchase is made. 

7. How often are commissions paid? This is another important matter that ought to be considered. Most reputed organizations pay their affiliates monthly or once they accumulate the absolute minimum commission of $50 to $ 100 or as indicated by you. You ought to avoid any program that needs a lot of sales to reach the minimum amount. 

8. Affiliate Programs are often single tier or two tiers. Just one tier program pays you for whatever business you've generated. On one other hand a two tier program pays you for the company you've generated and also a commission for the sales generated with a sub- affiliate, you've sponsored. A two tier program is always advantageous. 

9. Long standing reputed organizations supply a whole selection of tools and resources such as for instance Banners, Text Links, Brochures, Websites and training due to their affiliates. When selecting look out for such organizations because they actually make life much easier and helps you grow your house based business. 

10. Finally, you should read and understand the agreement when you join as an affiliate even if it happens to be the best organization in the world.

Understanding the Affiliate Agreement 

The affiliate agreement produced by the merchant and agreed by the affiliate, defines all facets of the affiliate program and typically includes: - Forms of Those sites merchant will accept into the affiliate program - Forms of links allowed and guidelines regarding their use. - Schedule and payments terms of fees and commissions - Terms of usage of merchant logo, name and site content - Technical specification your web site must meet, if any - Restrictions on kinds of content that will appear on affiliate sites - Requirements for compliance with all government laws, ordinances, rules, and regulations.

Affiliate Tracking Systems - Allow merchant to manage how it credits click-throughs - Monitor window of time in which affiliate will get credit for a click-through - Record and store affiliate information - Provide commission/fee reports