Right then lets cut out the jargon and speak in the simplest terms… Affiliate marketing is a way of making money online without having to supply any goods of services. You as an affiliate marketer will be rewarded for promoting a businesses product, service or site.
There are a number of forms of affiliate marketing, but the most popular model involves earning commission through driving traffic to another website. When customers complete a purchase you the affiliate would then be rewarded commission percentage. Affiliates marketers are often rewarded per conversion (or every time a user buys something) this is called ‘pay-per-conversion’. This can be a fixed amount or a percentage.
Another popular affiliate marketing model involves a visitor taking some kind of action. A common example includes, when a customer signs up for something or enters into an email list after for instance, completing a survey. This is called ‘pay-per-lead’.
How does it work?
So you have successfully directed traffic to your affiliate website. The customer has bought something and now you want to get paid for that conversion. You’re probably wondering how the sales you make are tracked to you? The answer is that the link to your affiliate website will include a unique tracking code. This is usually traced through cookies, which are dropped into the customer’s browser directory.
Not all affiliate plans operate the same way. Some plans enable affiliate marketers to place text or image hyperlinks to products or a Web site, others allow webmasters to host a store page that offers relevant products. Some affiliate plans simply require you to place general advertising banners or buttons.
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