Explaining Affiliate Marketing
Many of you might have heard the term “Affiliate Marketing” but don’t know what does it stand for ?
The following image taken from WikiPedia explains everything
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So if you got lost watching the arrows and other stuff on the image above, Affiliate Marketing is an online way to generate income by selling goods and services to different customers from the original sellers. Let’s get a simple example. Dell is a huge company selling computer parts. You sign up as their affiliate and you get a commission if you send buyers to them. If someone clicks on your link (which is shown on your site or landing page) and then buys something from Dell , you get let’s say 20 % of the cost of the product.
There are different way’s of Affiliate Marketing
- PPC (Pay Per Click)
At PPC, you get paid for every clicks generated from your sites. The biggest PPC Company out there is Google Adsense. So you get the ad code from Google and you add it on your site. If you have a good site with a lot of useful content and good amount of traffic, chances are you are going to make cash out of it. The more the traffic the more the income from any PPC company. Make sure that there are different strict rules (especially in Google Adsense) and if you are caught cheating you can lose your account
- CPA (Cost per Action)
There are different companies who pay their affiliates for different CPA’s made from their referrals or affiliates. Below I’m explaining the most know CPA’s
Sale – You get paid a fixed rate or percentage after every successful sale
Lead – You get paid a fixed rate when a visitor simply completes a free registration form or enters some details. There are some Surveys programs which pay from $1 to $7 for every completed survey. There are also some Zip / Submit Offers where you get paid when your visitor has successfully added his zip number
In the recent years Affiliate Marketing has been growing rapidly and the demand will always be high because its a strong connection between the seller and the buyer and we, the affiliate marketer’s connect them and get our share.
Of course many webmasters have tried different ways to make money from affiliate sites and they have used even ways which break the TOS of a company. Those ways are categorized in BlackHat Marketing
Doing blackhat doesn’t mean you are doing something illegal, simply you are doing something against the ethics. There are greedy people out there who don’t care too much about ethics and moral when it comes to dollars!
A well known blackhat method is e-whoring. Pretending to be a girl in different forums and chatrooms so you can get male signups at your dating affiliate links.
Many webmaster’s have been generating good income from PPI too. PPI stands for Pay Per Install where a user must install a spyware toolbar and you get something under a dollar for it
So the possibilities are endless. You can either earn money via PPC or CPA. Whatever you do just make sure you do it correctly and you do not break any companies TOS as the consequences might be really harsh for each of you
Thanks for your attention
Olgi Zenullari
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October 27, 2008 at 6:48 am | Mario
Thanks a lot for sharing your knowledge.
Actually this is a very nice post and
very easy for anyone to understand about
Affiliate Marketing PPC and CPA.
Mario
http://www.mariolist.com
November 2, 2008 at 6:14 pm | saleem khan
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April 24, 2009 at 1:57 am | John Taylor
Interesting blog post. What would you say was the most important marketing factor?
June 14, 2009 at 1:58 pm | quick loans
Thank you for your help!