In order to understand how does affiliate marketing work you must first know what it is and how it works. Affiliate Marketing is basically a business activity in which a merchant, usually an internet one, compensates a site with a commission for every visitor that refers a product via their promotional efforts. The site, often called a publisher, will receive payment only when their action results in a sale. The amount of commission that is given is based on the effort and time spent on behalf of the publisher’s client. It is not uncommon to see affiliate programs that offer as much as 70% commission on sales.
One of the top uses of affiliate marketing is through Social Media. Social Media is rapidly becoming one of the most popular ways to promote your products, services and business. The use of social media as an avenue for affiliate marketing can be a very effective method but there are many things that you must keep in mind before jumping into this field. First of all, in order to make money through social media you must have a quality product or service and the social media system will reward you with visitors if you provide a consistent supply of content and information about the product or service that you are promoting.
Another major use for affiliate marketing strategies is through Email marketing. This is another great way to promote a product and it allows you to reach a specific demographic group of buyers who are often not found on the search engines. You can also target people who are likely to buy your product or service. There are many email marketing strategies that you can use and these include creating a series of emails and sending them out to your list constantly, driving traffic to your emails by writing articles about the product and linking them to your website, using email marketing tools such as Aweber and Getresponse, and using a series of autoresponders to promote your promotions. These are all good methods of promoting products through email marketing.
Another popular use for affiliate marketing strategies is Pay per sale programs. You can get paid based on the amount of sales that you generate from a visitor that clicks through from your site to another site owned by the same person. Pay per sale programs can be very lucrative and if you are successful at getting a lot of traffic through your website you can make some serious money.
Other methods of making money through affiliate marketing are through AdSense and Commission Junction. AdSense is a program that has Google advertising on your site. Commission Junction is a membership site that provides product creators with a store where they can sell their products. By promoting their products through these sites you can earn a percentage of the revenue that the product generates.
The most popular affiliate marketing program that people use today is through performance-based commission systems. Performance-based commissions are tied to the level of performance that a product or service delivers. If your site generates a lot of traffic, but its functionality isn’t up to par, you won’t earn a good commission. If it’s perfectly functional but receives a lot of traffic, however, you’ll earn a better commission.