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Affiliate Marketing What Is It And Why Use It?



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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:




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Button Unveils New Capabilities, As Affiliate Marketing Finally Advances  AdExchanger

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Affiliate Tracking Software Market is Booming – Gaining Revolution in Eyes of Global Exposure  Cole of Duty

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EuropeFX Gearing up to Expand Client Base with Revamped Affiliate Program  Finance Magnates

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Five on Friday: Conversions, Unpaid Taxes and Premium Subscribers  Subscription Insider

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Your Biggest Cubs Questions? Rizzo's Adventure, Baker's Legend, META, and Other Cubs Bullets  bleachernation.com

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Global Affiliate Marketing Platform Market 2025 corporate overview, financial summary and SWOT analysis-AWIN, ShareASale, Taobao, JD, Amazon, etc.  3rd Watch News

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Affiliate Marketing Fraud To Cost $1.4 Billion Globally in 2020  PerformanceIN

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Global Affiliate Market Report 2020 Pandemic Situation to Boost Growth Top companies Everflow, LinkTrust, AffTrack, Hitpath, Impact Radius  Bandera County Courier

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Affiliate Program Software Market 2020 Industry Size, Growth, Share Evaluation, Trends, Supply, Segments, Demand, Revenue and Forecast to 2026  Jewish Life News

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Working Together for a Better Community, Please Do Not Disrespect Allen Robinson Like That, and Other Bears Bullets  bleachernation.com

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Latest Update on Affiliate Marketing Tracking Software Market : Industry Overview by Size, Share, Future Growth, Development, Revenue, Top Key Players Analysis and Growth Factors  Owned

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Can corporate affiliates that share common branding choose whether they want to be considered a unified “business” under the CCPA?  Lexology

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Virgin Trains affiliate strikes lease deal for SoCal high-speed rail to Las Vegas  Construction Dive

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Zomato: Zomato revenue doubles to $394 million in FY20  Economic Times

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Affiliate Marketing Platform Market 2020 Size, Share, Sales Revenue, Business Trends, Emerging Opportunities, Demand, Key Companies Strategies, New Applications and Forecast 2026  3rd Watch News

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Solitics: How data-driven marketing automation can help operators and affiliates  Gambling Insider - In-depth Analysis for the Gaming Industry

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Revenue Solutions Receives Investment from DC Capital Partners  FinSMEs

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For Better Affiliate Results, Embrace the Mobile App Ecosystem  PerformanceIN

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Report On Affiliate Marketing Market Statistics, Growth Rate, Industry Dynamics And Trends  Daily Research Chronicles

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Global Affiliate Program Software Market 2020 Analysis by Latest COVID19/CORONA Virus Impact with Market Positioning of Key Vendors: QualityUnit, Tipalti, LeadDyno, Offerslook, Scaleo, etc. | InForGrowth  3rd Watch News

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Market News: Affiliate Program Software Market Share, Trends and Growth 2020 to 2025: QualityUnit, Tipalti, LeadDyno  Owned

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Affiliate Software Market Analysis, Size, Regional Outlook, Competitive Strategies and Forecasts to 2025  3rd Watch News

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Highmark Inc. to affiliate with New York insurer  Pittsburgh Post-Gazette

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Sun Kissed Industries Inc.'s Numuni Subsidiary Launches Full BETA Sales Affiliate Program with a Highly Accomplished List of Initial Sales Affiliates  Yahoo Finance

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Affiliate Software Market Drivers, Revenue, Application and Industry Demand Analysis By 2027  Jewish Life News

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First Banking Platform For Creators Arrives After $4 Million Funding Round -  Talking Influence

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Are We Killing Politeness? 07/07/2020  MediaPost Communications

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Analysis: NEA's Membership May Drop, but Its Budget Continues to Grow. So Do Affiliates' Dues  The 74

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

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How to choose the best affiliate program of a bookie?  The Leader Newspaper Online

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Uber Eats and Groupon Adopt Actionable Intelligence, a New Product in the First-to-Market Button Evolution Product Suite  MarTech Series

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Minor league season's cancellation likely dooms some affiliates  Houston Chronicle

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Sur La Table was in trouble long before pandemic, retailer’s CEO writes  Seattle Times

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Stephanie Harris on COVID-19 and Why Affiliate Marketing is Viable Right Now  PerformanceIN

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Affiliate Software Market 2020- 2027 Opportunity | Demand | Share | Size | Trends | Development | Growth Factors | Major Companies | Revenue | Forecast Analysis till 2027  Owned

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Brave busted guiding user URLs to sources they profit from  CoinGeek

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Publishers see higher traffic to commerce sections, but also face affiliate fee cuts  Digiday

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Fintan Costello: Examining key differences in the US and European affiliate markets  SBC Americas

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Pop Culture Decor: Home Office Geeky Gift Guide  The Pop Insider

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Slots and sports boost Spain's online gambling revenue  CalvinAyre.com

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Migrating your affiliate programme without losing money  AffiliateINSIDER

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Instagram expands Shopping to more businesses, including creators selling their merch  TechCrunch

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The Main Street Lending Program: Which Small and Mid-Sized Businesses Are Eligible?  JD Supra

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Amazon reportedly planning drastic cuts to affiliate commission rates starting next week  The Verge

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Affiliate Marketing Programs Software Market to Witness Explosive Rise by 2026 with Top Key Players like Impact, Post Affiliate Pro, CAKE, TUNE, Rakuten Marketing  3rd Watch News

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For Influencers, Affiliate Revenue Is Next to Disappear  The Business of Fashion

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The state of affiliate marketing post COVID-19: Interview with Stuart McLennan  Marketing magazine Australia

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Rewatch: 5 Must-Take Actions for Affiliate Success in the New Normal  PerformanceIN

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Get Deluxe Sleep with the Helix Midnight Luxe  Digital Market News

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As Amazon Slashes Affiliate Referral Rates, Publishers Consider Alternatives  Forbes

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Fox's revenue rises on advertising, affiliate fees  MarketWatch

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Global Affiliate Market expected to grow USD XX.X million by 2025: Everflow, LinkTrust, AffTrack, Hitpath, Impact Radius, Click Inc  Owned

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Sources: New Orleans TV stations WYES and WLAE are in merger talks  NOLA.com

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Winnie Harlow Strikes a '90s Pose in Puma's New Mile Rider Sunny Getaway Sneaker  E! Online

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Affiliate Tracking Software Market Share, Growth, Statistics, by Application, Production, Revenue & Forecast to 2025  3rd Watch News

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Magellan Health Data Breach Victim Tally Reaches 365K Patients  HealthITSecurity.com

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We Are Living In An Affiliate World  Forbes

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Looking at the Future of Georgia Tech Through the Lens of the Pandemic Experience  Georgia Tech News Center

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U.S. police unions approved for millions in pandemic aid  Reuters

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Shop The Best Accessories Deals at Lululemon's Warehouse Sale  E! Online

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Main Street Lending Program–Launch Update | Lowenstein Sandler LLP  JD Supra

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Here’s A Look At The Impact Of Coronavirus (COVID-19) On The Affiliate Marketing Industry  Forbes

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Federal Reserve Main Street Lending Program: Updates, Timing and...  The National Law Review

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Most actively traded companies on the TSX  Yorkton This Week

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BioHiTech Global Appoints Walter Littlejohn III as an Independent Member of Its Board of Directors  Citybizlist Real Estate

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Ad Network Software Market 2020-2024: AdSupply, CJ Affiliate, MaxBounty, Switch, Tradedoubler, AdJug  3rd Watch News

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Diversification Gains Urgency For Business Impacted By Amazon’s Reduced Affiliate Marketing Fees  Forbes

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From bidets to meat thermometers, how publishers’ commerce businesses adapt  Digiday

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

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Bookshop, a new startup, is offering publications bigger kickbacks than Amazon (and the thrill of battling Bezos)  Nieman Journalism Lab at Harvard

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Improved 4QFY20 Profitability, Deleveraging Strengthen Indian Pharma's Flexibility  Fitch Ratings

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Exclusive: Netflix in talks to source Indian content from Reliance affiliate Viacom18 - sources  Reuters

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How Affiliate Marketing Can Boost Your Tech Startup's Revenue  Forbes

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As Amazon soars during the pandemic, publishers that rely on it now feel left behind  CNBC

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J.Crew Pulled Its Affiliate Marketing Program, But It Could Backfire  Morning Brew

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NYS HFA - Affordable Housing Revenue Bonds -- Moody's assigns Aa2 rating to NYS HFA, Affordable Housing Rev. Bonds, 2020 Series E and F; outlook stable  Yahoo Finance

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Spared for now, large publishers live in fear of Amazon commission cuts  Digiday

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Everything You Need to Know About Amazon's Affiliate Program  Business 2 Community

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International Tax Cases To Watch In The 2nd Half Of 2020  Law360

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

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Alion Science and Technology Corporation -- Moody's upgrades CFR (to B1) for Alion Science and Technology following mezzanine debt repayment; assigns Ba1 and B1 ratings to new first-out revolver and term loan  Yahoo Finance

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Affiliate Software Market Impressive Gains including key players QualityUnit, Tipalti, LeadDyno, Offerslook, Scaleo, Tapfiliate, Affise Technologies  3rd Watch News

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Harmony Express remote… we hardly knew ya – The Gadgeteer  The Gadgeteer

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syncreon Group B.V. -- Moody's announces completion of a periodic review of ratings of syncreon Group B.V.  Yahoo Finance

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Inside Good Housekeeping’s affiliate commerce business  Digiday

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How Has Affiliate Fraud Evolved To Rip Performance Marketers Off?  Forbes

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Brave browser CEO apologizes for automatically adding affiliate links to cryptocurrency URLs  The Verge

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Fox Corp profit beats on higher affiliate revenue  Reuters

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Farmer Boys Market – Sophisticated Demand & Key Performers COVID-19  3rd Watch News

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NN, Inc. -- Moody's announces completion of a periodic review of ratings of NN, Inc.  Yahoo Finance

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

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Report: Walmart suspends affiliate program with MagicLinks, Rakuten  Marketing Dive

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