Affiliate marketing is different things to different people, but
essentially, affiliate marketing is the act of marketing someone else’s
products or services for a portion, or commission, of each sale that you
make.
Some people do affiliate marketing as their full time jobs. That’s
it. That’s all they do – they market other people’s products or
services, collect their commissions, and live their lives as they wish.
They do not have to deal with customer service, shipping orders, or
anything else. All they do is promote other people’s products or
services, everyday.
Other people use affiliate programs in conjunction with their own
products or services, using affiliate programs as front end products,
upsells, and back end products. For example, if you had an information
product about weight loss, you might want to market exercise equipment,
exercise clothing, vitamins, or other items or services that are related
to weight loss along with your weight loss information product – to
increase your revenue.
Obviously you would not want to create these items, so you would find
these related products or services, and sign up for the affiliate
programs, allowing you to promote them. Some people even low cost
information products, such as ebooks, in order to sell high ticket
affiliate products or services. Alternately, some people just use
inexpensive affiliate products to enhance their own high ticket products
or continuity programs, such as membership sites.
Some people are confused about what affiliate marketing actually is.
For instance, many people who have products and offer affiliate programs
for those products might say that they sell their product through
affiliate marketing. What they mean is that they have affiliates who
sell the product for them, but they are actually merchants or affiliate
managers, in affiliate marketing terms.
But basically, affiliate marketing is selling someone else’s products
or services through various means, for various reasons – either to earn
an income, to enhance a product, or even to sell an additional product.
In fact, many people use low end affiliate products as lead ins, or
entry level products, for higher end affiliate products – never actually
creating or promoting a product or service of their own.
Is money being made? You better believe there is! If you include all
products and services that are sold through affiliates, affiliate
marketing is essentially a billion dollar industry, even though it isn’t
technically considered an industry in its own right. Many people don’t
even consider it a career, but they are mistaken.
Right now, at this very moment, there are thousands of affiliate
marketers that you have never even heard of quietly promoting affiliate
products and collecting huge commission checks every month. Why haven’t
you heard of them? You haven’t heard of them because they are not in the
Internet Marketing products market. They are in other ‘consumer’ niches,
such as weight loss, healthcare, sports, gambling, education, financial
products, etc.
Now, if you have an active interest in those things, or any other
conceivable thing, you have probably searched for information or
products related to your interest on the Internet. If this is the case,
you have most likely come into contact with an affiliate marketer,
without even being aware of it. You may have even purchased a product
through an affiliate marketer without ever knowing it.
Even Google has an affiliate program. That’s what Google AdSense is
all about. It’s an affiliate program, but it isn’t technically called
that. EBay has an affiliate program, as does Microsoft. There is an
affiliate program available for just about any product that you can
imagine, but not all ‘brands’ have affiliate programs – which of course
is their mistake.
Affiliate marketing presents a win-win-win situation. The owner or
maker of the product being sold is making money. The affiliate marketer
is making money, and the customer is getting what they want or need.
Everybody wins. Affiliate marketing has been around longer than you
think it has as well.
Many people think that affiliate marketing started sometime after the
Internet came into existence. This is wrong. Amway, Avon, Mary Kay – all
of these are essentially affiliate programs, but the people who were
actually doing the affiliate marketing were called distributors or
representatives – and they are still called distributors or
representatives to this day.
Affiliate marketing can even entail network marketing. Affiliate
marketing is the act of selling a product for a commission. Network
marketing also involves selling a product for a commission, but also
focuses on bringing other resellers (or affiliate marketers,
distributors or representatives) into the program as well. Sometimes,
however, affiliate marketing also allows and encourages you to bring
other affiliate marketers into the program.
One of my favorite types of affiliate marketing is known as CPA or
CPL, which stands for cost per action or cost per lead. CPA is simply
getting paid to have your visiting traffic to perform an action such as
leave a name and email address. That is called a lead or action, when a
name and email address or other information is collected. sometimes
other actions such as signing up for a free trial or leaving a zip code
is enough for the merchant to give you a profit. This profit can be
anywhere from $1 to $50 or more for a single action that does not always
need to be a purchase.
Again, affiliate marketing is different things to different people,
but the goal is the same – to make money. Affiliate marketing offers you
the opportunity and ability to make money without creating a product of
your own.