Affiliate marketing began just four years after the world wide web was launched, originally popularized by well known companies such as CDNOW or Amazon.com. Google’s Adsense is also a very well known type of affiliated marketing, but is not really considered as true affiliate marketing as the adverts usually centers around the theme of the website they are displayed (known more as contextual advertising.) Google does not also directly sell a specific product, but generates money in other ways.

Affiliate marketing is highly cost-effective, and in effect costs both the advertiser and the affiliate nothing, while having the potential of bringing in a very large form of income for both parties. While pay per click (or cost-per-click) mentioned above can present a risk to the advertiser, the cost-per-sale (CPS) system has very little or no risk at all for both parties, and is therefore preferred.

When an affiliate joins in with an e-commerce merchant of some sort (be it a subscription service, a shopping site etc…) payment is received through referrals done from the affiliate’s website – done through the following methods

1)Pay-per click systems  basically, the affiliate displays adverts on their site and is paid when a customer or internet user clicks on that website

2)RSS feeds or blogs – even personal sites can sit under this category. Blogging is fast becoming a staple form of marketing and promotion, and affiliate marketing partners well with this form of online communication

3)Comparison sites and shopping directories – such as review sites or legit advertising sites

4)Loyalty sites – this is when a reward system is in place via a cash back or points back system (or charitable donations)

5)Coupon sites that focus strictly on marketing and promotions

6)Email lists – legit email lists to subscribers of the affiliate’s website etc – NOT spam

7)A registration path – when a person registers with a specific site, be it for a newsletter or subscription, offers from other companies are represented and advertised

8)Networks – there are many affiliate marketing networks. Some even function on a multi-tier or multi-level marketing sort of set up.

It’s a form of revenue sharing or commission based advertising. The term “affiliate marketing,” however, is often associated with network marketing or multi-level marketing and therefore many companies prefer to use the term “performance marketing”. Affiliate marketing is the most cost effective sort of marketing there is, and is actually incredibly efficient. For this reason, many companies (especially those that started in the early days of e-commerce) owe a tremendous amount to affiliate marketing (amazon.com is a good example) and it has now become normal for companies to include affiliate marketing in many of their plans.

There are three types of compensation methods that are associated with affiliated marketing. The first type is Cost per Click (CPC) or Cost per Mil (CPM.) Basically, the affiliate earns by how many clicks the advertising on hisher site generates, or by just having the advert published on the website. But because of click fraud and many other questionable tactics, CPC is no longer the general form used for affiliate marketing. Generally, companies now either use CPA (Cost per Action) or CPS (Cost per Sale.) The first is based on how much the advert generates interest by the clicker to actually buy or register at the advertised site, the second is based strictly on sales. In other words, an affiliate is paid if the clicker actually purchases something on the advertised site.

1. Introduction
2. Affiliate Marketing
3. Traffic Methods – PPC
4. Traffic Methods – Free
5. Search Engine Optimization
6. Social Networking

Introduction to Internet Marketing:

While I would not consider myself an expert in making money by selling products online (yet), I am an expert on the internet and marketing on it. In my professional career I work marketing on it every day. My goals are to obtain leads, increase sales, make sites more visible and purchase 3rd party advertising. I am responsible for a multi-million dollar budget, so it makes it hard to simply turn around and do marketing on my own as my habits need to be changed from work to personal. I have to be much more fickle with my own money while starting out. Now that you have a little on me…

Internet marketing is a large ocean of opportunity. It is estimated that 1.4 BILLION people use the internet and that’s only 21% of the world population, and it continues to grow daily. So that is a potential customer base larger than any single market. If you have a product that is of interest to .1% that is still 1.4 MILLION customers that are interested in what you are selling.

Internet marketing is about using different methods to help people find something they want, and hopefully that is something you have to sell. There are many different methods that I will talk about in the next few posts, but suffice it to say it will not be exhaustive. If you want to get started today check out traffic tactics world, it has a lot of information to offer if your just starting out.

Up Next: Affiliate Marketing