Affiliate Marketing – A Newbie Guide
When a company or an individual person wants to sell their products they
have to promote them to the public. They do this by using various
advertising resources such as newspapers, magazines and of course – the
The main problem they face is cost. When they advertise their products
there is no guarantee they will make enough sales to cover the cost of the
advertising. As with any kind of business, they can only grow if they are
making healthy profits.
Therefore they need a way of promoting their products to the world while
saving money on advertising. This is where Affiliate Marketing comes in.
The concept behind Affiliate Marketing is that the company makes an
agreement with an individual person to promote their products for them.
Once a sale is made then the company pays a commission to the person who
gets the sale for them. This person is known as an affiliate.
Supposing a company was selling health products. Your role as an affiliate is
to promote these health products to the general public. You do this by
referring people to the company’s website. If the person you referred
decided to buy a product costing $50 then you would get a percentage of
that $50 as commission. How much depends on what the company offers.
Top affiliates make thousands of dollars from the sales of multiple products.
Using a resource such as Clickbank they set up marketing campaigns to
promote products for various vendors. You can promote these products as if
they were your own and receive commission from them. You can even
create your own product and get other affiliates to promote it for you.
The great thing about Affiliate Marketing is that you don’t have to sell any
products. You simply encourage people to visit the company’s website which
will do the selling for you. Affiliate Marketing is also known as “Referral
Marketing” – because you have “referred” someone to the company’s
As an affiliate you are not expected to sell. Just