Affiliate Marketing What Is It And Why Use It?

Affiliate Marketing is having Affiliates do your Marketing for you. What I mean by Affiliate is someone who tells people about your product/service and you pay them for a desired response, such as a purchase.

Affiliate Marketing is one of the best ways to get the word out about your product/service.

The best way to pay Affiliates is pay per sale. This means that you only have to pay your Affiliates when they actually make a sale. This reduces your advertising costs dramatically. your Affiliates take on all the risks so you don't have to worry about wasting your money on advertising which may not produce any results.

Using Affiliate is a very cheap way to advertise, however it is very effective. The software required to start up your own Affiliate program can cost only about $50 per month.

Then after that just wait for people to start promoting your product/service for you.

Please remember that 5% of your Affiliates will do 95% of the selling. What I mean by this is that most of your Affiliates will just sit there and do nothing. This can be countered if you teach them what to do, exactly how to do it and providing everything for them so they have to do as little work as possible.

To find out about teaching your Affiliates please see the "How To Super Charge Your Affiliates" article

You don't have to use this form of advertising just to sell your product or service. You can also use it to grow your opt-in mailing list. This is discussed in another article.

How Much Should You Pay Your Affiliates

How much you pay your Affiliates really depends on how much your product/service costs, its profit margin, how much you're willing to give up and what action you want to take place.

Lets say that your product is priced at $100. Lets also assume that it cost you $10 to make it. This leaves you with $90 profit.

How much of this do you want to give away to the person that made this sale possible?

Personally, I believe that you should give a rather high percentage of the profits back to the affiliate (Depending on how many sales they regularly generate), because without them, you wouldn't have made that particular sale at all, so reward them for it.

A fairly decent reward is about 50% of the revenue generated. Your product is priced at $100 so a $50 commission is quite generous. It really depends on your other costs (such as a mortgage) you have, which would help decide on a fair commission to both you and the Affiliate.

Another factor which plays a part is how much additional advertising you do, such as pay per click. For example, if you rely solely on your Affiliates to Market for you, then you may want to reduce the commission you pay to them to help you survive. However, you may want to pay them more, to encourage them to send more sales you way. It really is a judgment call.

On the other hand, if you advertise in other ways effectively, then you can afford to pay higher commissions, because you're not putting all your eggs in one basket.

In the end it's all down to how greedy or generous you are. The best advice I can give you is to pay the affiliate what you think he/she deserves. Hopefully that way everyone is happy and earning their fair share.

That is the key to a successful affiliate program.

By Stephen Warren, the creator of http://www.marketershandbook.com, the completely FREE guide to marketing online, with useful articles and links.

---

Economic Recession or Not, You Must be Creative to Survive

Are we Really in an Economic Recession?Some US statistics seem... Read More

Revealed The Myth of Making Money Through Affiliate Marketing

Many people enter into the affiliate marketing arena with the... Read More

Affiliate Marketing - A Quick Overview For Beginners

It's simply a kind of marketing in the internet where... Read More

Cant Find Any ClickBank Super Affiliates? Grow Your Own!

Affiliate marketing has become extremely popular, and ClickBank offers a... Read More

10 Profit Boosting Tips To Increase The Success Of Your Affiliate Program

1. Develop credible, benefit rich ad copy, along with a... Read More

Making Money Online With Affiliate Programs

If you are like most work from home internet business... Read More

Affiliate Marketing Or Market Your Own Products?

How should you organize your online business?Affiliate marketing seems to... Read More

Affiliate Revenue For Beginners

Affiliate programs can be a very powerful source of income... Read More

Affiliate Program As It Should Be

Every off- or online business has a target of growing... Read More

5 Ways to Promote Affiliate Programs

After having chosen several programs to join, you probably realize... Read More

Choosing An Affiliate Marketing Program

If you are new to affiliate marketing, you are probably... Read More

The Easiest Way For Beginners To Make Money Online

There are obviously many ways to make money online, some... Read More

Setting Up Your Own Affiliate Program (Part Two)

This article is the second of my two part series... Read More

Affiliates Need To Read Their Newspaper

Millions of people check the news everyday-- in the morning... Read More

Who Says Affiliates Cant Use Joint Ventures To Make Money?

This is a technique I teach almost every day. Yet... Read More

Affiliate Marketing Pros and Cons

Want an online business with a win-win opportunity for both... Read More

Online Affiliate Programs - 6 Must Read Reasons to Join Them

You must have been exposed to the online hype, and... Read More

Article Marketing 101 For Affiliate Program Managers

This article is for Affiliate Program Managers: Interested in increasing... Read More

How to make money with Affiliate Programs - The Sensible Way

Every day, thousands of would-be marketers scour the internet looking... Read More

Free and Effective Affiliate Marketing Using Articles and Traffic Exchange Sites

Affiliate marketing is an extremely tricky subject and so is... Read More

How To Create Your Own Successful And Profitable Affiliate Program

Most of the truly successful marketers have three competitive advantages... Read More

Webmaster Affiliate Programs - How to Separate the Good from the Bad

More and more people are turning to the Internet and... Read More

Affiliate Communication

Communication is Key!When building an affiliate network communicating with affiliates... Read More

Affiliate Marketing: Starting Out On The Internet

So you want to start your own business, and you... Read More

How to Create Multiple Streams of Income, Part 2

A while back I wrote a little article called "My... Read More

Affiliate Business : Ten Checklists for Your Success

While it can be quite easy to start an online... Read More

Seven Ways to Set Yourself Apart From Other Affiliate Marketers

Okay so you've read (fill in the blank with internet... Read More

Affiliate Marketing Terminology

Affiliate Marketing is a large business piece on the Internet.... Read More

12 Tips On Selecting An Affiliate Program

People sign up with affiliate programs everyday, looking to expand... Read More

Ebook Review: The Super Affiliate Handbook

Rosalind Gardner's 270 page ebook "The Super Affiliate Handbook" is... Read More

Understanding The Three Basic Types of Affiliate Programs

With all the companies on the internet that offer affiliate... Read More

Affiliate Marketing ? How to Start Earning Money Today

If you're new to Affiliate Marketing and your finding everything... Read More

How Much do YOU Charge Per Hour? Avoid the Question by Setting up Passive Income Streams

If you work with clients, at some point in your... Read More