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We’ll start off with a quick analysis of the basics, and then I will be writing about more specific information. But I think it’s fair for any readers who are completely new to the affiliate marketing game to get a brief overview of what I’m talking about here.

So what is Affiliate Marketing?

In the real world, a person who wants to sell a product can easily set up shop and because he has a physical presence, he is pretty much guaranteed to get visitors who he can convert to buyers. Of course, his potential visitors are limited by geographical area, but people who come into his store are more likely to buy.

All the concepts of a real life business can be applied to an internet business. If a seller sets up shop on the internet, which would mean setting up a website selling his product, he would naturally want to attract as many visitors as possible. The difference is that now, he is not limited by geographical location. That means there could be literally tens of thousands of people from around the world coming to his store everyday! That’s the dream of every business owner.

So why do we need Affiliate Marketing? As you know, the internet is a HUGE place. People don’t just wander around on the internet browsing every site randomly. They generally come on the internet for one reason; information. Usually they use search engines to find the information they want. However, it would be impossible for a seller to be on the top of the results for every search query related to his product/service.

There are millions of results for every search query and their rankings in a search engine depend on a very complex algorithm. Sure, a seller could easily get to the top of a few search queries, even some popular ones, but he will only be reaching a very small fraction of his potential clients.

In order to reach as many people as possible, this seller can create an affiliate program where he can allow other people to sell his product for a % commission. Then, he can have other people target the various search terms he cannot rank for, thereby increasing the amount of potential visitors and buyers.

Why would someone want to become an affiliate and sell someone else’s product? Well first of all, these % shares can actually be quite high, since many digital products have no production/shipping costs. Digital product commissions can easily reach 50% payouts; where as hard goods tend to pay out much lower (4-20% depending on product).

So on a 40$ ebook at 50% commission, the affiliate gets a juicy 20$ per sale without having to worry about anything involving creating, producing, delivering, or processing the product. It is also possible for an affiliate to refer a customer who buys a home theatre system that costs 2000$, and at say an 8% commission, that’s 160$ earned. The best part is, there is virtually no risk, since the costs of promoting online are very minimal.

Pretty sweet deal right?

Come back regularly for updates and information to help you easily make money online with affiliate marketing.

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