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Affiliate Marketing What Is It And Why Use It?



AliExpress by Alibaba.com


Affiliate Marketing is having Affiliates do your Marketing for you. What I mean by Affiliate is someone who tells people about your product/service and you pay them for a desired response, such as a purchase.

Affiliate Marketing is one of the best ways to get the word out about your product/service.

The best way to pay Affiliates is pay per sale. This means that you only have to pay your Affiliates when they actually make a sale. This reduces your advertising costs dramatically. your Affiliates take on all the risks so you don't have to worry about wasting your money on advertising which may not produce any results.

Using Affiliate is a very cheap way to advertise, however it is very effective. The software required to start up your own Affiliate program can cost only about $50 per month.

Then after that just wait for people to start promoting your product/service for you.

Please remember that 5% of your Affiliates will do 95% of the selling. What I mean by this is that most of your Affiliates will just sit there and do nothing. This can be countered if you teach them what to do, exactly how to do it and providing everything for them so they have to do as little work as possible.

To find out about teaching your Affiliates please see the "How To Super Charge Your Affiliates" article

You don't have to use this form of advertising just to sell your product or service. You can also use it to grow your opt-in mailing list. This is discussed in another article.

How Much Should You Pay Your Affiliates

How much you pay your Affiliates really depends on how much your product/service costs, its profit margin, how much you're willing to give up and what action you want to take place.

Lets say that your product is priced at $100. Lets also assume that it cost you $10 to make it. This leaves you with $90 profit.

How much of this do you want to give away to the person that made this sale possible?

Personally, I believe that you should give a rather high percentage of the profits back to the affiliate (Depending on how many sales they regularly generate), because without them, you wouldn't have made that particular sale at all, so reward them for it.

A fairly decent reward is about 50% of the revenue generated. Your product is priced at $100 so a $50 commission is quite generous. It really depends on your other costs (such as a mortgage) you have, which would help decide on a fair commission to both you and the Affiliate.

Another factor which plays a part is how much additional advertising you do, such as pay per click. For example, if you rely solely on your Affiliates to Market for you, then you may want to reduce the commission you pay to them to help you survive. However, you may want to pay them more, to encourage them to send more sales you way. It really is a judgment call.

On the other hand, if you advertise in other ways effectively, then you can afford to pay higher commissions, because you're not putting all your eggs in one basket.

In the end it's all down to how greedy or generous you are. The best advice I can give you is to pay the affiliate what you think he/she deserves. Hopefully that way everyone is happy and earning their fair share.

That is the key to a successful affiliate program.

By Stephen Warren, the creator of http://www.marketershandbook.com, the completely FREE guide to marketing online, with useful articles and links.

AliExpress by Alibaba.com


MORE RESOURCES:




Revenue for State Policy Network and State Affiliates Tops $120 Million - PR Watch
Revenue for State Policy Network and State Affiliates Tops $120 Million  PR Watch

Fox Corp Profit Beats on Higher Affiliate Revenue - The New York Times
Fox Corp Profit Beats on Higher Affiliate Revenue  The New York Times

CBS misses revenue estimates as AT&T dispute hurts ad sales - Reuters
CBS misses revenue estimates as AT&T dispute hurts ad sales  Reuters

What Happens to This Important Disney Business After the Disney+ Launch - Motley Fool
What Happens to This Important Disney Business After the Disney+ Launch  Motley Fool

3 Ways Affiliate Marketing Can Benefit Social Media Influencers - Business 2 Community
3 Ways Affiliate Marketing Can Benefit Social Media Influencers  Business 2 Community

Inside The Data-Crunching That Powers Ziff Media Group's $1 Billion Affiliate Commerce Biz - AdExchanger
Inside The Data-Crunching That Powers Ziff Media Group's $1 Billion Affiliate Commerce Biz  AdExchanger

CBS just misses third-quarter Wall Street estimates - Daily Star Trek News
CBS just misses third-quarter Wall Street estimates  Daily Star Trek News

Iterum Therapeutics PLC (ITRM) Reports Q3 Loss, Lags Revenue Estimates - Nasdaq
Iterum Therapeutics PLC (ITRM) Reports Q3 Loss, Lags Revenue Estimates  Nasdaq

Performant Financial (PFMT) Reports Q3 Loss, Lags Revenue Estimates - Nasdaq
Performant Financial (PFMT) Reports Q3 Loss, Lags Revenue Estimates  Nasdaq

IsoRay (ISR) Reports Q1 Loss, Tops Revenue Estimates - Nasdaq
IsoRay (ISR) Reports Q1 Loss, Tops Revenue Estimates  Nasdaq

Disney Delivers Earnings Magic for Investors - Motley Fool
Disney Delivers Earnings Magic for Investors  Motley Fool

CBS Q3 Earnings Surpass Estimates, Revenues Increase Y/Y - Nasdaq
CBS Q3 Earnings Surpass Estimates, Revenues Increase Y/Y  Nasdaq

Algo Affiliates Is Making Referral Marketing Easier Than Ever - CryptoGlobe
Algo Affiliates Is Making Referral Marketing Easier Than Ever  CryptoGlobe

BuzzFeed UK has hired 6 affiliate writers to fuel diversification efforts - Digiday
BuzzFeed UK has hired 6 affiliate writers to fuel diversification efforts  Digiday

AMC Networks Sees Lower 3Q Ad, Affiliate Fee Revenue 10/31/2019 - MediaPost Communications
AMC Networks Sees Lower 3Q Ad, Affiliate Fee Revenue 10/31/2019  MediaPost Communications

CBS Ups All Access, Showtime OTT Revenue 39% - Media Play News
CBS Ups All Access, Showtime OTT Revenue 39%  Media Play News

The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2019 - Business Wire
The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2019  Business Wire

O'Reilly's Trump Interview Available To Affiliates - Radio Ink
O'Reilly's Trump Interview Available To Affiliates  Radio Ink

Affiliate Marketing Ranked #1 for Customer Acquisition and is Critical to Revenue Growth - Yahoo Finance
Affiliate Marketing Ranked #1 for Customer Acquisition and is Critical to Revenue Growth  Yahoo Finance

Online Affiliate Marketing Programs that Drive Revenue - Coast Digital
Online Affiliate Marketing Programs that Drive Revenue  Coast Digital

Pay TV Declines Continue, But Affiliate Fees Go Higher 10/30/2019 - MediaPost Communications
Pay TV Declines Continue, But Affiliate Fees Go Higher 10/30/2019  MediaPost Communications

WeWork Third-Quarter Losses Widen to $1.25 Billion as Expansion Ramps Up - The New York Times
WeWork Third-Quarter Losses Widen to $1.25 Billion as Expansion Ramps Up  The New York Times

Affiliate Marketing Platform Market Growth and Status Explored in a New Research Report| AWIN ,ShareASale ,Taobao - One Digi Click
Affiliate Marketing Platform Market Growth and Status Explored in a New Research Report| AWIN ,ShareASale ,Taobao  One Digi Click

Why Shares of Fox Corp. Are Gaining Today - Motley Fool
Why Shares of Fox Corp. Are Gaining Today  Motley Fool

Bloomington sets water park tax plan in motion - Minneapolis Star Tribune
Bloomington sets water park tax plan in motion  Minneapolis Star Tribune

Discovery’s Profit Soars, Driven by Lower Costs and Licensing Growth - The Wall Street Journal
Discovery’s Profit Soars, Driven by Lower Costs and Licensing Growth  The Wall Street Journal

Fox Corporation Is One Of The Best Undervalued Long-Term Plays In This Shifting Media Landscape - Seeking Alpha
Fox Corporation Is One Of The Best Undervalued Long-Term Plays In This Shifting Media Landscape  Seeking Alpha

‘Google’s gonna Google’: Publishers say a Google search change is denting their coupon revenues - Digiday
‘Google’s gonna Google’: Publishers say a Google search change is denting their coupon revenues  Digiday

Trouble in Tacoma, Council Adopts Gun Tax Despite Massive Opposition - AmmoLand Shooting Sports News
Trouble in Tacoma, Council Adopts Gun Tax Despite Massive Opposition  AmmoLand Shooting Sports News

Publishers Look Beyond the Buy Button to Capitalize on Affiliate Revenue - Folio: - Folio Magazine
Publishers Look Beyond the Buy Button to Capitalize on Affiliate Revenue - Folio:  Folio Magazine

Pepperjam to Host Webinar: Research Supports Affiliate Marketing as Marketers' Top Customer Acquisition Channel and Critical Revenue Contributor - GlobeNewswire
Pepperjam to Host Webinar: Research Supports Affiliate Marketing as Marketers' Top Customer Acquisition Channel and Critical Revenue Contributor  GlobeNewswire

Clearway Energy, Inc. (CWEN) Q3 Earnings and Revenues Lag Estimates (Revised) - Nasdaq
Clearway Energy, Inc. (CWEN) Q3 Earnings and Revenues Lag Estimates (Revised)  Nasdaq

CBS misses predictions but remains positive - TBI Vision
CBS misses predictions but remains positive  TBI Vision

Region’s largest public company to be acquired for $5.4B - Business Observer
Region’s largest public company to be acquired for $5.4B  Business Observer

MSG Networks (MSGN) Q1 2020 Earnings Call Transcript - The Motley Fool
MSG Networks (MSGN) Q1 2020 Earnings Call Transcript  The Motley Fool

How to Get Your Affiliate Program Featured in Seasonal Gift Guides - PerformanceIN
How to Get Your Affiliate Program Featured in Seasonal Gift Guides  PerformanceIN

Information Technology ETF (VGT) Hits New 52-Week High - Nasdaq
Information Technology ETF (VGT) Hits New 52-Week High  Nasdaq

TerraForm Power (TERP) Q3 2019 Earnings Call Transcript - Nasdaq
TerraForm Power (TERP) Q3 2019 Earnings Call Transcript  Nasdaq

Navistar Impacted By UAW'S Strike At General Motors - PRNewswire
Navistar Impacted By UAW'S Strike At General Motors  PRNewswire

TV Station Blackouts Are Accelerating; Here’s Why - Forbes
TV Station Blackouts Are Accelerating; Here’s Why  Forbes

When Less is Actually More: Behind Bauer Media's Print Success - Folio: - Folio Magazine
When Less is Actually More: Behind Bauer Media's Print Success - Folio:  Folio Magazine

Discovery +10% after Q3 profits beat - Seeking Alpha
Discovery +10% after Q3 profits beat  Seeking Alpha

The America’s Test Kitchen recipe for profitable media - Digiday
The America’s Test Kitchen recipe for profitable media  Digiday

Why Shares of Camping World Traded Higher Today - Nasdaq
Why Shares of Camping World Traded Higher Today  Nasdaq

Cars.com Inc. (CARS) Q3 2019 Earnings Call Transcript - Motley Fool
Cars.com Inc. (CARS) Q3 2019 Earnings Call Transcript  Motley Fool

Hemisphere Media Group Announces Third Quarter 2019 Financial Results - Yahoo Finance
Hemisphere Media Group Announces Third Quarter 2019 Financial Results  Yahoo Finance

Cars.com Reports Third Quarter 2019 Results - Yahoo Finance
Cars.com Reports Third Quarter 2019 Results  Yahoo Finance

Affiliate Marketing Ranked #1 for Customer Acquisition, Study Finds - PerformanceIN
Affiliate Marketing Ranked #1 for Customer Acquisition, Study Finds  PerformanceIN

‘We’re playing offense’: Verizon pivots its publishing strategy to focus on commerce - Digiday
‘We’re playing offense’: Verizon pivots its publishing strategy to focus on commerce  Digiday

Disney Ends Fiscal 2019 With Strong Fourth Quarter - Morningstar.com
Disney Ends Fiscal 2019 With Strong Fourth Quarter  Morningstar.com

CarGurus on course to overtake Cars.com revenue any day now - AIM Group
CarGurus on course to overtake Cars.com revenue any day now  AIM Group

Better Collective CEO praises Q3 performance as revenue soars - Gambling Insider - In-depth Analysis for the Gaming Industry
Better Collective CEO praises Q3 performance as revenue soars  Gambling Insider - In-depth Analysis for the Gaming Industry

2019 International Performance Marketing Awards Winners Announced - PerformanceIN
2019 International Performance Marketing Awards Winners Announced  PerformanceIN

Report: NBCU Considers Making Peacock Free To All 11/04/2019 - MediaPost Communications
Report: NBCU Considers Making Peacock Free To All 11/04/2019  MediaPost Communications

Hemisphere Media Group Inc (HMTV) Q3 2019 Earnings Call Transcript - Motley Fool
Hemisphere Media Group Inc (HMTV) Q3 2019 Earnings Call Transcript  Motley Fool

JPMorgan Chase's Preferred Stock, Series BB Crosses Above 6% Yield Territory - Nasdaq
JPMorgan Chase's Preferred Stock, Series BB Crosses Above 6% Yield Territory  Nasdaq

Glens Falls Hospital moves to affiliate with Albany Med - The Daily Gazette
Glens Falls Hospital moves to affiliate with Albany Med  The Daily Gazette

Trecora Resources (TREC) Q3 2019 Earnings Call Transcript - Nasdaq
Trecora Resources (TREC) Q3 2019 Earnings Call Transcript  Nasdaq

Deepdotweb admin says $15.5M Bitcoin ‘kickback’ scheme didn’t exist - The Next Web
Deepdotweb admin says $15.5M Bitcoin ‘kickback’ scheme didn’t exist  The Next Web

LeoVegas' Germany revenue affected by PayPal crackdown - AffiliateINSIDER
LeoVegas' Germany revenue affected by PayPal crackdown  AffiliateINSIDER

Analyst: 3Q Pay TV ‘Worse Than Freaking Ugly’ - Broadcasting & Cable
Analyst: 3Q Pay TV ‘Worse Than Freaking Ugly’  Broadcasting & Cable

Fox CEO Relays Strategies for First Full Year as Standalone Company - Media & Entertainment Services Alliance M&E Daily Newsletter
Fox CEO Relays Strategies for First Full Year as Standalone Company  Media & Entertainment Services Alliance M&E Daily Newsletter

Wall St ends near flat; healthcare shares gain but trade deal delay weighs - Nasdaq
Wall St ends near flat; healthcare shares gain but trade deal delay weighs  Nasdaq

Sweden sees decline in gaming revenue in third quarter - AffiliateINSIDER
Sweden sees decline in gaming revenue in third quarter  AffiliateINSIDER

INTERVIEW-Soccer-Pregnant Morgan eyes Olympic return three months after giving birth - Nasdaq
INTERVIEW-Soccer-Pregnant Morgan eyes Olympic return three months after giving birth  Nasdaq

3 Strategies Learned from Accepting Ever-Greater Challenges as an Entrepreneur - Inc.
3 Strategies Learned from Accepting Ever-Greater Challenges as an Entrepreneur  Inc.

Affiliate Software Market 2019 Business Scenario – QualityUnit, Tipalti, LeadDyno, Offerslook, Scaleo - Crypto News Plus
Affiliate Software Market 2019 Business Scenario – QualityUnit, Tipalti, LeadDyno, Offerslook, Scaleo  Crypto News Plus

Brunswick (BC) Q3 Earnings and Revenues Top Estimates - Nasdaq
Brunswick (BC) Q3 Earnings and Revenues Top Estimates  Nasdaq

SaaS CRO: What You're Not Testing (but Should) - Business 2 Community
SaaS CRO: What You're Not Testing (but Should)  Business 2 Community

Star Wars: That Looks Like Boba Fett In The Mandalorian! - Screen Rant
Star Wars: That Looks Like Boba Fett In The Mandalorian!  Screen Rant

Ad Network Software Market Size, Industry Status and Share for Leading Players| AdSupply ,CJ Affiliate ,MaxBounty - ToplatestDailynews
Ad Network Software Market Size, Industry Status and Share for Leading Players| AdSupply ,CJ Affiliate ,MaxBounty  ToplatestDailynews

NYK Line Reports Profits in its Liner Division, Despite Smaller Revenues - Hellenic Shipping News Worldwide
NYK Line Reports Profits in its Liner Division, Despite Smaller Revenues  Hellenic Shipping News Worldwide

Gevo discusses plans for low-carbon ethanol, RNG - Biomass Magazine
Gevo discusses plans for low-carbon ethanol, RNG  Biomass Magazine

Publishers love getting affiliate revenue from their reviews. So is it okay for Amazon to pay to get more of those reviews upfront? - Nieman Journalism Lab at Harvard
Publishers love getting affiliate revenue from their reviews. So is it okay for Amazon to pay to get more of those reviews upfront?  Nieman Journalism Lab at Harvard

Milwaukee's Foley & Lardner has a crystal ball on esports growth - Milwaukee Business - Milwaukee Business Journal
Milwaukee's Foley & Lardner has a crystal ball on esports growth - Milwaukee Business  Milwaukee Business Journal

Fintech Startup Raises $16 Million, Buys Assets From Aon Affiliate To Administer Extended Warranties - Forbes
Fintech Startup Raises $16 Million, Buys Assets From Aon Affiliate To Administer Extended Warranties  Forbes

Affiliate Marketing Tracking Software Market Analysis -Global Demand, Opportunities, Revenue, Production, and Geographical Forecast To 2024 - Ny Telecast 24
Affiliate Marketing Tracking Software Market Analysis -Global Demand, Opportunities, Revenue, Production, and Geographical Forecast To 2024  Ny Telecast 24

Here's Why Investors Will Pay Attention to Amazon's Holiday Predictions This Week - Nasdaq
Here's Why Investors Will Pay Attention to Amazon's Holiday Predictions This Week  Nasdaq

McDonald's Global Presence and the Three-Legged Stool - Market Realist
McDonald's Global Presence and the Three-Legged Stool  Market Realist

Publishers’ affiliate businesses are also at risk from browser changes to limit tracking - Digiday
Publishers’ affiliate businesses are also at risk from browser changes to limit tracking  Digiday

Discovery Communications Inc (DISCA) Q3 2019 Earnings Call Transcript - Motley Fool
Discovery Communications Inc (DISCA) Q3 2019 Earnings Call Transcript  Motley Fool

Google may be about to kill affiliate marketing links - Fast Company
Google may be about to kill affiliate marketing links  Fast Company

Public Hearing for $53 Million to Fund 77 Unit Residential Units on Santa Clara - Fillmore Gazette
Public Hearing for $53 Million to Fund 77 Unit Residential Units on Santa Clara  Fillmore Gazette

Affiliate Marketing Programs Software Market to Reach a High revenue during 2019-2024: Impact, Skimlinks, Post Affiliate Pro, TUNE, Rakuten Marketing - Global Market Release
Affiliate Marketing Programs Software Market to Reach a High revenue during 2019-2024: Impact, Skimlinks, Post Affiliate Pro, TUNE, Rakuten Marketing  Global Market Release

How Dennis Publishing’s affiliate business boosts its ads performance - Digiday
How Dennis Publishing’s affiliate business boosts its ads performance  Digiday

Gains in Affiliate Fees Power Fox Corp. Earnings - Variety
Gains in Affiliate Fees Power Fox Corp. Earnings  Variety

Affiliate Revenue Strategies: Innovate, but Play by the Rules - RisMedia.com
Affiliate Revenue Strategies: Innovate, but Play by the Rules  RisMedia.com

Strong Q3 for Better Collective as revenue and profit grows - Gaming Intelligence
Strong Q3 for Better Collective as revenue and profit grows  Gaming Intelligence

Global Gaming loses Ninja Casino's latest Swedish licence appeal - AffiliateINSIDER
Global Gaming loses Ninja Casino's latest Swedish licence appeal  AffiliateINSIDER

Viacom Q2 Profit Rises 3% Despite Dips in Advertising, Affiliate Revenue - Variety
Viacom Q2 Profit Rises 3% Despite Dips in Advertising, Affiliate Revenue  Variety

The 25 Best Affiliate Marketing Companies in 2019 - Small Business Trends
The 25 Best Affiliate Marketing Companies in 2019  Small Business Trends

TerraForm Power Reports Third Quarter 2019 Results - Yahoo Finance
TerraForm Power Reports Third Quarter 2019 Results  Yahoo Finance

Edited Transcript of ROIAK earnings conference call or presentation 7-Nov-19 3:00pm GMT - Yahoo Finance
Edited Transcript of ROIAK earnings conference call or presentation 7-Nov-19 3:00pm GMT  Yahoo Finance

Partnership automation - the industry's best kept secret - Mumbrella Asia
Partnership automation - the industry's best kept secret  Mumbrella Asia

September revenue increases for Rhode Island sports betting - AffiliateINSIDER
September revenue increases for Rhode Island sports betting  AffiliateINSIDER

Online gaming will be a goldmine for affiliate marketing - VentureBeat
Online gaming will be a goldmine for affiliate marketing  VentureBeat

Streaming video wars are giving publishers an affiliate fee bump - Digiday
Streaming video wars are giving publishers an affiliate fee bump  Digiday

Retail Briefing: Retailers are trying to loosen Amazon’s grip on affiliate revenue - Digiday
Retail Briefing: Retailers are trying to loosen Amazon’s grip on affiliate revenue  Digiday

Ukraine gambling proposal revealed - AffiliateINSIDER
Ukraine gambling proposal revealed  AffiliateINSIDER

How to Build an Affiliate Website in 2019 - Business 2 Community
How to Build an Affiliate Website in 2019  Business 2 Community

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