Affiliate marketing has quickly become one of the most popular and the most effective ways to advertise on the Internet. The premise of affiliate marketing is very simple.
A company, let’s say eBay, goes to another web site and asks them to place a banner or link to eBay on their site. Every time a user clicks on that eBay banner and visits the site, and buys the product the owner of the original site gets a commission. It’s as simple as that.
The history of affiliate marketing goes back to approximately 1994 with the trailblazing music website www.CDNow.com. They were, as far as most people know, the first site to pay other sites for directing Internet traffic to them. Internet giant Amazon.com soon caught on and became the site most associated with affiliate marketing. Today, the practice of affiliate marketing is used by essentially every major web site in the world.
Why affiliate marketing? One of the reasons that affiliate marketing has proven to be so popular is that it is completely based on performance. In most cases, the company doing the advertising doesn’t pay a single penny to the site that is carrying their ad unless there is evidence that Internet traffic has been driven to the advertising site. There are, however, other ways of doing affiliate marketing.
Some advertising sites have paid the site hosting their link based not on the number of times an original IP visits through the link, but on the number of times the banner ad was “seen.” This method presents a whole host of problems since things like hit counts can be forged and there is no way to insure that just because someone visited a web page that had your logo on it that they even saw it or if they did, that they even knew what it was.
Other methods of affiliate marketing include paying only when a link is followed AND some kind of transaction takes place. This can be tough on the site hosting the link because the attention span of the average Internet user isn’t long enough in most cases to follow a link and then either complete a purchase, or fill out a form of some kind. The conventional method simply pays a host a commission for every time an original IP is directed to their site.
In a matter of only a few years, affiliate marketing has become one of the most cost effective ways to drive traffic to a site. Since, in most cases, both the advertiser and the host profit from the set up, there is no reason to believe that affiliate marketing won’t be a dominant advertising method well into the future.
Tuesday, April 30, 2013
Is Affiliate Marketing A Pyramid Scheme? - Is Affiliate Marketing MLM?
Because affiliate marketing works so well and seems to genuinely benefit both the website that is advertising as well as the website that is hosting, people tend to look for problems that just don’t exist. One of the “problems” that has dogged affiliate marketing for years is the idea that is is a multi-level marketing scheme.
What is multi-level marketing? It’s much better known as a pyramid scheme. In most traditional cases, pyramid schemes are illegal. They work by constantly signing up new people to sell a product that doesn’t actually exist. The people at the top of the pyramid make money be collecting a commission off of all the sales that happen below them in the pyramid structure.
In recent years, pyramid schemes have tried to gain a bit of respectability by offering legitimate products like phone cards that made the whole operation legal. But, in essence, pyramid schemes are still tainted by the perception that they are inherently dishonest and, unless you start a pyramid scheme and are at the top of the pyramid, you’re earning money for someone else.
Affiliate marketing is, in no conceivable way, multi-level marketing. In most cases, a site that wants to advertise pays another site to direct traffic to them. There are multi-level affiliate marketing set ups that have one site direct traffic to another site and then that site directs people to the site that pays both previous sites, but even in this case, the customer isn’t tricked or misled and there isn’t any sort of financial transaction that takes place, either. Multi-tiered affiliate marketing is simply another way for web pages to create traffic and revenue.
The way earnings work for multi-level affiliate marketing is different than a pyramid scheme, as well. Is it true that in the end, the site that is being linked to makes the most money? Sure, but that’s because they are the ones offering the product or service. The other sites are simply steering customers to them. With multi level affiliate marketing, everyone makes money and assuming a legitimate good or service is being sold at the end of the path, the consumer ends up happy, too.
It can be a little confusing for those new to Multi level affiliate marketing to tell the difference between it and a pyramid scheme. But rest assured the two have very little in common, most importantly the fact that almost all pyramid schemes are illegal while multi level affiliate marketing is quite legal and a very effective tool in Internet advertising,
What is multi-level marketing? It’s much better known as a pyramid scheme. In most traditional cases, pyramid schemes are illegal. They work by constantly signing up new people to sell a product that doesn’t actually exist. The people at the top of the pyramid make money be collecting a commission off of all the sales that happen below them in the pyramid structure.
In recent years, pyramid schemes have tried to gain a bit of respectability by offering legitimate products like phone cards that made the whole operation legal. But, in essence, pyramid schemes are still tainted by the perception that they are inherently dishonest and, unless you start a pyramid scheme and are at the top of the pyramid, you’re earning money for someone else.
Affiliate marketing is, in no conceivable way, multi-level marketing. In most cases, a site that wants to advertise pays another site to direct traffic to them. There are multi-level affiliate marketing set ups that have one site direct traffic to another site and then that site directs people to the site that pays both previous sites, but even in this case, the customer isn’t tricked or misled and there isn’t any sort of financial transaction that takes place, either. Multi-tiered affiliate marketing is simply another way for web pages to create traffic and revenue.
The way earnings work for multi-level affiliate marketing is different than a pyramid scheme, as well. Is it true that in the end, the site that is being linked to makes the most money? Sure, but that’s because they are the ones offering the product or service. The other sites are simply steering customers to them. With multi level affiliate marketing, everyone makes money and assuming a legitimate good or service is being sold at the end of the path, the consumer ends up happy, too.
It can be a little confusing for those new to Multi level affiliate marketing to tell the difference between it and a pyramid scheme. But rest assured the two have very little in common, most importantly the fact that almost all pyramid schemes are illegal while multi level affiliate marketing is quite legal and a very effective tool in Internet advertising,
Monday, April 29, 2013
Affiliate Marketing As A Business - A Business With No Hassel
For many people, the lure of working from home is too strong to resists. Being able to set up your own hours, your own schedule and your own your speed is an extremely attractive way of living to most people.
But the thought of setting up your own web-based business can be a huge hassle. You have to have a web design, a product and then you have to sell it, ship it and handle customers. A much easier way to work from home and run a web-based business is called affiliate marketing.
Setting up a site that works as an affiliate marketing site isn’t really that hard. There are many different web-page building programs out there that walk you through every step of the process. Once you have a functional web site, you need to come up with a list of companies that will pay you to link to them. Many major websites like Amazon have an affiliate program that you can join and then get paid for simply linking to their website.
But if you really want to cash in, you don’t want a webpage with just a list of links on it. This may earn you a buck or two, but when most web surfers stumble upon these kinds of pages after a Google search, they tend to get frustrated and leave. The best route for you to go is to provide interesting web content that relates to the company you’re linking to.
If you can’t write interesting web content yourself, there are many companies that will do it for you for a very reasonable price. Once you’ve got your content, you can weave your links throughout it. People will find your web page on search engines like Google, Yahoo and Ask.com and when they see the well-written content, they will hang around and read what’s on your site. They will, in most cases, click on the links provided and you’ll be counting the cash in no time flat.
While there is no guarantee that affiliate marketing will turn into a cash cow, with enough hard work, the odds are in your favor. When you combine a cool site design with quality content and a good mix of interesting links, you are bound to get a good number of hits that will quickly translate into dollars for you. Give it a try, you might be surprised at how well it works!
But the thought of setting up your own web-based business can be a huge hassle. You have to have a web design, a product and then you have to sell it, ship it and handle customers. A much easier way to work from home and run a web-based business is called affiliate marketing.
Setting up a site that works as an affiliate marketing site isn’t really that hard. There are many different web-page building programs out there that walk you through every step of the process. Once you have a functional web site, you need to come up with a list of companies that will pay you to link to them. Many major websites like Amazon have an affiliate program that you can join and then get paid for simply linking to their website.
But if you really want to cash in, you don’t want a webpage with just a list of links on it. This may earn you a buck or two, but when most web surfers stumble upon these kinds of pages after a Google search, they tend to get frustrated and leave. The best route for you to go is to provide interesting web content that relates to the company you’re linking to.
If you can’t write interesting web content yourself, there are many companies that will do it for you for a very reasonable price. Once you’ve got your content, you can weave your links throughout it. People will find your web page on search engines like Google, Yahoo and Ask.com and when they see the well-written content, they will hang around and read what’s on your site. They will, in most cases, click on the links provided and you’ll be counting the cash in no time flat.
While there is no guarantee that affiliate marketing will turn into a cash cow, with enough hard work, the odds are in your favor. When you combine a cool site design with quality content and a good mix of interesting links, you are bound to get a good number of hits that will quickly translate into dollars for you. Give it a try, you might be surprised at how well it works!
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