Affiliate Marketing Basics
Starting an affiliate business from home is one of the best ways to start making money on the internet and can be rewarding if you go about it in the right way. An affiliate program offers you the opportunity of entering into an agreement with a merchant in which you, the affiliate, earn a commission for referring sales and/or leads to the merchant. A good affiliate agreement must always offer a win-win solution for both the affiliate and the merchant.
What’s in it for the affiliate?
Ten Advantages of building a home based affiliate business:
No need to develop your own product or service
It can take a long time and lots of money to develop a good product or service. In fact, many companies spend millions of dollars on product development every year. A good affiliate program offers you the opportunity to make money with someone else’s product or service.
Most affiliate programs, especially on the internet, will allow and even encourage you to start your business immediately after you have signed up as an affiliate. Some companies may take a day or two to approve your application. Either way, you can be in business within a very short period of time.
No investment required to get started
There is normally no cost involved in joining an affiliate program. Most companies don’t even expect you to buy their product or service before starting to promote it. It can obviously be to your advantage to buy the product or service. After all, it is easier to promote a product or service that you are using yourself and it gives you a lot more credibility as well.
Very low risk
Starting a new business can be very risky and most new companies do not survive the first year in business. By becoming an affiliate of an established company you significantly reduce your risk. In addition, your home based affiliate business can and should handle more than one affiliate program. Don’t put all your eggs in one basket.
No or very limited selling
The trick is to pre-sell a product or service. This is accomplished by gently referring potential customers to the company you are affiliated with. Let the merchant do the actual selling and pay you a commission for the referral. Not only do most people not like the idea of selling something but by leaving the selling up to your principle you don’t have to deal with payments, deliveries, complaints, etc. This is one of the great advantages of having a home based affiliate business.
Your own business
Being an affiliate does not mean you lose your freedom to do as you please. You remain in charge of your own home business and can do whatever you want to promote your business as long as you abide by the rules of your principle.
Write your own check
As with any home business, what you put in is what you get out. The harder you work and the more committed you are the more money you can earn in commissions. Remember, if you treat your business as a hobby it will only pay you as a hobby.
High commission rates
What would you think is a reasonable commission rate? 5%? 10%? Well, an affiliate can earn a good living from commissions. It is actually possible to make more money from a sale than the company who developed the product or service! For products that can be digitally downloaded, such as e-books and software, the commission rate is often anything from 20% to 75%.
Join multiple affiliate programs
You can have multiple income streams by joining various affiliate programs. It is obviously to your advantage if these programs are complimentary as it will save you time marketing them. However, be careful not to spread yourself too thinly. Only select a couple of really good programs. Briana Booker has explained really good what are the best affiliate marketing programs on her article published on New Theory.
Receive training and support
Perhaps the most important advantage of a good affiliate program is the training and support you will receive. Starting a business on the internet can be a daunting task, especially for someone that has no or very limited knowledge or experience. It can cost you thousands of dollars trying to find your way. Any good affiliate program will offer you free training and as much support as you need. Why? Because they want you to succeed and make lots of money.