WHY AND HOW AFFILIATE MARKETING WORKS

Affiliate marketing works on the principle that merchants need to generate traffic to his website, and for him to generate a lot of traffic to his site, he can start an “affiliate program”.
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An affiliate program is a system whereby a merchant will
provides support and all the necessary incentives to enable affiliates join the program.
Setting up the program demands that the merchant does several thing :which includes
Provision of an affiliate “tracking” system
Deciding on the affiliates commission for each referred sale .
Setting up support and resources for affiliates so they can easily market the products
The affiliate tracking systems can be run by the merchant, or through a third-party like
Clickbank or Commission Junction
“Commissions” (what affiliates are paid) are usually set as a percentage of product price.
Lastly, the support and resources include things like banners, solo ads and other pre-written
promotional material the affiliate can use.
When an Affiliate joins a particular Affiliate programme,he is given an “Affiliate Link”.
This link is unique to that individual affiliate, and all visitors referred by the affiliate through that
link are tracked and credited to the affiliate.

To sum up: when a visitor clicks through an affiliate link and purchases something, the affiliate
who referred that visitor gets credit for the sale and gets paid a commission.
Once you have the link, you can start using it on your own website, in e-mails, in Google
Adwords ads, and so on. The link will take the visitor to the merchant's sales page, while
crediting you with the referral if a sale is made.
The reason affiliate programs works so well is because of the incentive provided to affiliates,
and the cost-effectiveness provided to the merchant.
The affiliate wants to earn money. The merchant wants to save money, and he does, because
he doesn't have to pay the affiliate anything until a sale is made.
This is different from traditional advertising, where you have to pay up front for visitors and have
no guarantee of sales.
So, the relationship between an affiliate and a merchant is really a win-win situation. For the
affiliate, especially, there's no limit on income. As an affiliate, you can earn as much money as
you are able to generate in commissions.
This is unlike a regular job where you have a fixed salary our hourly wage. If you were to refer
$100,000 in sales as an affiliate on one product, and if your commission is 50%, then you get
$50,000.
It doesn't matter how long it took you to do it…or even whether you do it month after month…
You control your own financial destiny all the way
Good-Luck
Sam
www.onlinebizoptsinfo.blogspot.com