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What Is Affiliate Marketing?

by Alex Perez Prat

Affiliate marketing can be such a great business, especially for people who are considering starting an online business at home. It began not long after the World Wide Web was established, originally taking visitors on music websites to places where they could purchase the music they liked by clicking on a link. Since this kind of marketing is a way to implement revenue sharing, the referring website is paid for the traffic generated by the click-through and may also get commissions on actual sales.

The more popular and heavily trafficked a website is, the more attractive it is as an affiliate and the more revenue it can generate and also profit from. Types of websites that have heavy use, such as gaming and gambling sites and retail sales sites, are most prized by marketers. Rank systems help business and affiliate services select the best website to include in an affiliate network.

Banners are another way to use affiliate marketing and due to they are so eye-catching they demand premium prices. Some skeptics claim banners are merely annoying but the statistics seem to favor actual results. The smaller link text ads need to have carefully crafted wording to compete with the big banner ads.

Not only commercial sites figure into affiliate marketing arena. The increasing growth in the popularity of weblogs has made them a high traffic venue for this type of advertising. The income generated on weblogs can pay expenses for the blog or may just be a little extra earning, but for the "Godzilla" blogs with gigantic followings, the profits can be very nice indeed.

A great deal of software has been developed in oder to optimize affiliate marketing strategies by automating as much of the work as possible. Companies have grown that do nothing else but affiliate marketing management for website owners. Many web business owners manage their own affiliate forays, but beginners are much better off hiring expert help while they learn the ropes.

Personal web pages may accept affiliate programs, but for most the revenues may only be a few pennies here and there, but many personal webmasters have the philosophy that a little money for no work at all is still a good thing. Why not accept ads that require no work on your part except signing up?

There are quite a few directories online to help find publishers and affiliates and there are huge networks to join to connect to many sites at once. The best affiliates are those who have similar interests, products or services but that are not in direct competition. For example, a freezer seller might affiliate with dishwasher and range sellers but not with others with competing brands of refrigerators. All of those categories might affiliate with cooking and recipe or home remodeling sites.

Choosing an affiliate marketing program must be based on the types of people that visit your site and not according to its payment scheme. Choose the affiliate program most visited by your target market. It will not be necessary to sign up in every affiliate marketing program you encounter.

Alex Perez-Prat is the webmaster and owner of Resale Rights Kingdom Dot Com. To find out more e-marketing tips, resources and tools go to Resale Rights Kingdom

Published November 2nd, 2007

Filed in Business, Marketing