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Affiliate Marketing can be win win situation
by Rick Hendershot
Small-Business-Online.com
Affiliate Marketing is one of the most
popular methods of marketing products on the web. A producer or
manufacture of a product can widen his or her distribution chain
immensely by contracting with agents or "affiliates" to represent
these products to his or her customers. The affiliate normally has a
means of generating prospective buyers of the product. And these
prospects are simply referred to the producer who then gives the
referring agent (the affiliate) a commission if the referral results
in a sale. In other words, the
affiliate does not need to handle the product at all. He or she is
compensated simply for sending leads to the producer. But compensation
only happens when a referral actually results in a sale. The affiliate
is being rewarded for having a source of sales-generating traffic.
This makes affiliate marketing especially suitable for online sales,
since "traffic" is what any website owner has; and it is that traffic
which the affiliate is cashing in on.
Normally leads are sent to the producer
via affiliate links on the affiliate's website. The producer provides
a specially coded link which the affiliate "embeds" in his or her
site. When a site visitor clicks on the link, the source of the click
is recorded by the producer's ecommerce system. When a sale takes
place the affiliate gets credit. Commissions are accumulated by the
producer; and when the total commissions reach a threshold amount
(usually between $25 and $100) the producer sends a check to the affiliate.
From the perspective of affiliate a good product is one
that pays a healthy commission. This can often be as much as 50% of
the sale price for digital products, and as low as 5% or even 2% for
hard goods such as books or computers. From the perspective of the
producer of the product a good affiliate is one who generates a lot of
traffic and has a high conversion rate.
Often there is a third party affiliate agency that
stands between the producer and the affiliate. The agency handles
order taking and fulfillment, as well distributing the funds to both
producer and affiliates. This ensures that affiliates actually get
their commissions as contracted. One of the largest affiliate
agencies is ClickBank, a company that handles more than 11,000 digital
products on behalf of publishers and producers. To see the ClickBank
catalogue,
go here.
The Linknet Network is a library of
resource materials spread across more than 20 websites and a number of blogs.
You can place your link text on 30 pages spread out over at least 15 different
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and a Real Estate blog called Inside Real Estate,
Informative Real Estate articles are also maintained in an expanding
Real Estate Resource Library.
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