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Affiliate Marketing - the very basics.

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Author: Derek Jones

What is Affiliate Marketing?

It is a very popular business model to follow because it is probably the lowest cost method of starting an Internet Business.

The concept called Affiliate Marketing is very simple in that you sell or promote someone else's service or product in return for a commission or fee.

This business model exists in many forms, and are commonly called Affiliate Programs. You join the Affiliate Program that the Merchant is operating that is selling the particular product you are interested in promoting. The most common types of programs are as follows:

1. Pay per click - commission will be paid by the merchant for each visitor to his website.

2. Pay per lead - you are paid for each lead delivered to the merchant's website.

3. Pay per sale - you are paid for each sale completed at the merchant's website.

Each one of the above returns a certain payment for delivering the click, lead, or sale. By far the largest number of businesses online work on the Pay per Sale system.

Many Internet Marketers will guide the beginner into Affiliate Marketing because it is considered to be the simplest business model to get started as well as develop. It is also considered to be the cheapest method of starting your Internet Business.

Your prime costs will be in the promotion of the product or service. All the costs associated with the product, sales page, delivery, after sales service, as well as the merchant services set up and costs, will be to the merchant's account.

When starting your internet business through affiliate marketing there are five steps to follow to ensure success:

1. A niche market is your first target - one that preferably interests you and is large enough for you to expand your business within it.

2. Find what is deficient in the current market, a product or service, or possibly a problem that needs resolving.

3. Research the available affiliate products and services for something that will rectify the deficiency or solve the problem.

4. You must promote the product or service.

5. It helps if you have a website of your own which allows you to pre-sell the product before redirecting the visitor to the merchant's sales page. Your own website can also start generating your own opt-in list.

The requirement for your own website is something that needs careful attention as it will be the way to develop and grow your own targeted list to which you can promote other affiliate products and grow your business.

The one objective that you will need is to create a trusting relationship with your customers as well as your partners. Whether it is Affiliate Marketing, or any other business model that you base your business on, it is of paramount importance to create this trust. Honesty is the key word to be remembered when dealing with potential customers because after a short time they will come to rely on your judgment will start, then continue to buy upon your recommendation.

About the author: Derek Jones - helping online businesses get started as well as growing existing businesses into successful entities. For more information why not sign up for our free weekly newsletter at:

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