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Affiliate Marketing Income Introduction

What is Affiliate Marketing?

Perhaps, there are several ways to define affiliate marketing. I can best summarize the answer to the question "what is affiliate marketing?" using the following three definitions:

Affiliate marketing is an Internet-based marketing practice in which a business pays an affiliate marketer for each visitor or customer brought about by the affiliate's marketing efforts.

Affiliate marketing is a form of online marketing using one website to drive traffic and sales to another.

Affiliate Marketing is a revenue sharing venture between a website owner and an online merchant. The website owner will place advertisements on his/her website to either help sell the merchant's products or to send potential customers to the merchant's website, all in exchange for a share of the sales profits.

Affiliate Marketing History

Affiliate marketing online started With Amazon.com In July 1996, Amazon.com launched its "associates" program which has now grown to more than 450,000 affiliate marketing websites in its network. Basically, the Amazon.com affiliate marketing business model works something like this: A small website owner registers with Amazon.com and becomes an affiliate marketer. The small website owner would put various links, banners, and products on their "affiliate marketing" website. A visitor would go to the affiliate marketers website and click on one of the advertising links or banners that lead them to the merchant's website. When the visitor buys something from the merchant's site, the merchant pays the the affiliate marketer a "referral fee" (affiliate sales commission) for sending the visitor to the merchant's site.

Ways to earn income through affiliate marketing.

Pay Per Click. The merchant pays the affiliate marketer EVERY time a potential customer clicks on an advertising banner or text link on the affiliate marketer's website that leads them to the merchant's website. The affiliate marketer can earn an income amount ranging from a few pennies to several dollars depending on the product and commission structure.

Pay Per Sale The merchant pays the affiliate marketer EVERY time a potential customer clicks on an advertising banner or text link on the affiliate marketer's website that leads them to the merchant's website AND the potential customer converts to a paying customer by making a purchase. The affiliate marketer can earn an income amount ranging from a set dollar amount per item purchased to a percentage off total sales generated by the referred customer.

Pay Per Lead The merchant pays the affiliate marketer for EACH potential client that clicks on an advertising banner or text link on the affiliate marketer's website that leads them to the merchant's website AND the potential client registers at the merchant's website. The affiliate marketer is paid a previously determined income amount.

How The Merchant benefits from Affiliate Marketing

By utilizing affiliate marketing, the merchant can advertise on hundreds, even thousands of affiliate marketing websites all over the Internet. The more affiliate marketing websites the merchant has working for him, the more exposure his products and services will get.

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Affiliate Marketing Income

For many website owners, affiliate marketing is a great way to earn some extra income (and quite often some serious income) without actually having to "do" anything except keep visitors coming to your website. All it involves is becoming an affiliate marketer and placing an ad on your website that advertises and links to the merchants website. Affiliate marketing income can be considered "easy money" because there's no selling or promotion of any kind. An affiliate marketer who has a decent website can just sit back and wait for the income to roll in.