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The following article was published in our article directory on December 10, 2013.
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What is Affiliate Marketing?

Article Category: Advice

Author Name: Dalmahoy Partners, LLC

What exactly is Affiliate Marketing?

Affiliate marketing is a fantastic way to generate passive income. There are various opportunities to start a profitable business on the internet and for minimal startup costs, affiliate marketing could be the most popular way – but what what exactly is affiliate marketing? Affiliate marketing is an internet business model that has won plenty of favor amongst marketers because of the low start up costs and overhead of marketing other peoples products and services.

One of the reasons affiliate marketing has such low startup costs is you don't have to stock the product, ship it, or worry about anything - that's the beauty of affiliate marketing. All you have to do is promote the product. There is no need for employees if you don't want them. And you don't have to worry about customer returns or any headaches and hassles of owning your own retail store. You just need to drive traffic to your affiliate's website and they manage the rest.

Businesses that want to sell products and services will oftentimes recruit the support of others. These other people are called Affiliates. In a nutshell, affiliate marketing is nothing more than a commission-only sales agreement with one or more companies. You sign up to sell their products and services and, in the event you do, they pay you a commission for your efforts.
What are the Best Affiliate Marketing Programs?

Possibly one of the best-known affiliate marketing companies is Amazon.com. Amazon's online store has literally hundreds of thousands of products and you can choose any of these products and make a commission by promoting them on your website. Amazon's affiliate program offers new affiliates the opportunity to earn a 4 to 8% commission on the sale of literally tens of thousands of products and services.

Another well-known affiliate marketing businesses is Clickbank.com. Clickbank's library of affiliate programs is second to none. With Clickbank you can sell digital goods ranging from software like WordPress add-ons to ebooks pertaining to how to get a six pack! CommissionJunction.com manages most name-brand store lines, and PayDotCom.com offers internet marketing related items.

Keep in mind as well that it's possible to mix and match. You are not restricted to one particular affiliate program. You can become a member of Amazon.com's affiliate program and Clickbank.com simultaneously. Just keep in mind the target audience you are marketing to so that you offer products and services that are relevant to them.
How Do You Become an Affiliate Marketer?

Once you determine the affiliate products you want to promote, you'll need to apply to become an affiliate of that business. This entails giving them your basic personal information, details about your website and some tax information, to avoid having tax withheld from your commission checks. The big affiliate companies must report your earnings to the IRS. Keep in mind, however, that you are responsible for paying all taxes owed.

Once your application is approved then you'll be able to start adding affiliate banners to your website. They are all supplied by the company, it's just a matter of cutting and pasting the code. It is really that simple. Select what banners and advertisements you want and add these items to your website.

When a visitor to your site clicks on an affiliate banner, goes to the company's landing page and purchases, you'll be automatically credited with a commission for that sale. Some companies require to hit a minimum threshold before paying out commissions, but in general, companies pay out your accumulated commissions once or twice a month. Your job is to drive visitors to your site and then redirect the traffic back through your affiliate link to secure a sale. That's it. Publish, promote and profit.

You will probably be given a choice of having the commission dollars deposited directly into your bank account or via PayPal. In the event you opt to receive physical checks, there's normally a delay and perhaps a small fee. As a result, many affiliate marketers prefer to have checks deposited directly into their bank account or PayPal. Other other item to keep in mind is that many businesses have a 30-60 day return policy for their customers, so payments for commissions earned are usually made 30-60 days in arrears, once the return period has expired.

So what exactly is affiliate marketing – it's a fantastic way of creating passive income. What would you do with a higher income stream each month? That's perhaps a discussion for another day, but the opportunity is there. What will you do with it?

Keywords: Affiliate Marketing

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