Perhaps the simplest way to
explain affiliate marketing is that it is a way of making money online
whereby you as a publisher are rewarded for helping a business by
promoting their product, service or site.
There are a number of forms of
these types of promotions but in most cases they involve you as a
publisher earning a commission when someone follows a link on your blog
to another site where they then buy something.
Other variations on this are
where you earn an amount for referring a visitor who takes some kind of
action – for example when they sign up for something and give an email
address, where they complete a survey, where they leave a name and
address etc.
Commissions are often a percentage of a sale but can also be a fixed amount per conversion.
Conversions are generally
tracked when the publisher (you) uses a link with a code only being
used by you embedded into it that enables the advertiser to track where
conversions come from (usually by cookies). Other times an advertiser
might give a publisher a ‘coupon code’ for their readers to use that
helps to track conversions.
Affiliate Marketing is a revenue sharing venture between a website 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 in exchange for a share of the profits.
There are three ways to earn money through affiliate marketing:
Pay Per Click — Every time a potential customer leaves the affiliate website by "clicking" on the link leading to the merchant's website, a certain amount of money is deposited in the affiliate's account. This amount can be pennies or dollars depending on the product and amount of the commission.
Network marketing:
Network marketing is a business model that is based on a company distributing products and services through a network of independent contractors. Network marketing is also popularly known as multi-level marketing (MLM), affiliate marketing, and tiered marketing. Some of the most well known network marketing companies worldwide are , Shaklee, Mary Kay, Tupperware and Avon.
To understand how network marketing works, it may be helpful to think of a business model that most consumers are familiar with, franchising. In a franchise, an owner pays a company for the right to do business using that company’s products, services, and name. The parent company agrees to provide the owner with training, development, advertising and marketing
support. While the name on the outside of the building is that of the
parent company, the actual location is privately owned by an
independent business owner.
While networking marketing
is not actually a franchising model of business, it does work in a
similar fashion. In fact some large MLM companies refer to itsbusiness plan informally as “private franchising”. In network marketing,
a company distributes its products and services through independent
business owners (IBO) who in turn market these products and services to
customers of their own.
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