Affiliate Marketing Explained

Many people looking for a work-at-home business eventually find themselves looking critically at affiliate marketing. The industry has a long history and an exciting future. The following is a brief description of those origins, along with some common terms and knowledge you should have to get started.

Affiliate Definition

Affiliate marketing is not a new concept. It actually predates the Internet and has been around since business was a concept. The basic idea is that a merchant will reward an individual or other business for bringing additional customers to them. Today’s market is very different from these early partnerships, and is much more income-based than original concepts. Today’s affiliates are driven less by a trust-based partnership and more by the pursuit of compensation.

Most companies compensate their affiliates directly, usually on a cycle of 30 days. The affiliate runs ads for these companies in an attempt to capture leads for them. Some companies pay per lead, no matter the quality, while others will pay for a conversion.  Be sure to clarify the pay cycle, and that you understand the criteria for payment.

Methods of Marketing

Typical affiliate marketing takes place on the Web or on TV. Ads are run that feature various Web URLs or phone numbers for the customer to call. Targeting is a big factor, and narrowing down who can see your affiliate ads is key to success. When a lead comes in from those locations, the conversion is tracked and the affiliate is rewarded based on the agreed upon amount of commission.

Written by Phin Upham

Phin Upham is an investor from NYC and SF.  You may contact Phin on his Twitter page.

Leave a Reply

Your email address will not be published. Required fields are marked *

Security Code: