Internet Income Model #2: Affiliate Marketing (Part I)

Affiliate marketing is one of the most lucrative models on the Internet. You can promote other people’s product and get commissions for your efforts without seeing a single customer or talking to anyone.

AFFILIATE MARKETING What is Affiliate Marketing and How to start with it? Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s own marketing efforts.

My own simple definition is this: “Affiliate Marketing is promoting other people’s (Company’s) product and earning a commission in return (If a sale is made).” It works the same as in the offline world, however the profit and scope is much bigger over the Internet (Not to mention that people had exploited this too much though).

So basically what you do as an affiliate is: You promote other people’s (or Company’s) Product using a special link with a code only being used by you embedded into it (this is required by advertiser to track the leads referred by you).

If someone buys that product (or in some cases completes a task like signing up or completing a survey) using your link, it gets tracked by the advertiser and you are rewarded a commission (which is a percentage of the sale price but can also be a fixed amount as set by the advertiser).

This way both the advertiser, and the publisher, benefit. Advertisers get more sales of their product when many publishers (or affiliates) promote their product and Affiliates in turn generate revenue by promoting the product.

Moreover Advertiser pays only when a sale is made so there is no risk of getting non converting visits like in some PPC campaigns.

This is the reason why most of the product creators and Advertisers provide an affiliate program for increasing their product sales.

Strengths: You don’t even need a domain name or a website in some cases. You can earn huge commissions from up to 50% to even 100% commissions! You don’t need to focus on creating products – just drive traffic to the merchant site and watch your income roll in (if you do it right of course).

Weaknesses: You will need to search for a good affiliate program and build up traffic in order to see results.

Opportunities: There are unlimited opportunities because there are always new products coming out each day and affiliates are needed everywhere!

Threats: You are competing against THOUSANDS of affiliates out there and those affiliates are your competitors. Some programs even offer two-tier programs and established affiliates probably have dozens of affiliates under them as well.

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