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What is affiliate marketing?

Affiliate marketing has quickly become one of the most popular and the most effective ways to advertise on the Internet. The premise of affiliate marketing is very simple. A company, let’s say eBay, goes to another web site and asks them to place a banner or link to eBay on their site. Every time a user clicks on that eBay banner and visits the site, the owner of the original site gets a commission. It’s as simple as that.

The history of affiliate marketing goes back to approximately 1994 with the trailblazing music website www.CDNow.com. They were, as far as most people know, the first site to pay other sites for directing Internet traffic to them. Internet giant Amazon.com soon caught on and became the site most associated with affiliate marketing. Today, the practice of affiliate marketing is used by essentially every major web site in the world.

Why affiliate marketing? One of the reasons that affiliate marketing has proven to be so popular is that it is completely based on performance. In most cases, the company doing the advertising doesn’t pay a single penny to the site that is carrying their ad unless there is evidence that Internet traffic has been driven to the advertising site. There are, however, other ways of doing affiliate marketing.

Some advertising sites have paid the site hosting their link based not on the number of times an original IP visits through the link, but on the number of times the banner ad was “seen.” This method presents a whole host of problems since things like hit counts can be forged and there is no way to insure that just because someone visited a web page that had your logo on it that they even saw it or if they did, that they even knew what it was.

Other methods of affiliate marketing include paying only when a link is followed AND some kind of transaction takes place. This can be tough on the site hosting the link because the attention span of the average Internet user isn’t long enough in most cases to follow a link and then either complete a purchase, or fill out a form of some kind. The conventional method simply pays a host a commission for every time an original IP is directed to their site.

In a matter of only a few years, affiliate marketing has become one of the most cost effective ways to drive traffic to a site. Since, in most cases, both the advertiser and the host profit from the set up, there is no reason to believe that affiliate marketing won’t be a dominant advertising method well into the future.

What are Two-tier affiliate sites?

Most experienced web users are familiar with affiliate marketing and how it works. You provide a link on your website and when someone follows it and buys a product, you get a piece of the profit. It’s easy. But there is a new way to make some serious bucks when it comes to affiliate marketing. It’s called two-tier affiliate marketing. Don’t let the complicated name fool you. It’s just as easy to make money from two-tiered marketing as it is from the traditional style.

The way two-tier affiliate marketing works is that not only do you make a buck or two when someone follows a link from your site and then buys a product or service, but you also make a buck whenever someone follows the link from your site and then signs up to become an affiliate marketer just like you! It’s like getting double the profits for no extra work!

And the best part? It’s the gift that keeps on giving. Every time that new affiliate marketer makes a sale of a product or service, you continue to make a few extra bucks. Not only that, but when they get someone to sign up for affiliate marketing, you get a piece of their profits too! It may sound too good to be true, but it isn’t. If you can get a whole host of people to sign up for affiliate marketing through you, you continue to make money off of their sales as long as they are in the program.

And don’t worry about any legality problems. You’re selling legitimate products and services so anyone that suggests that what you’re doing is multi-level marketing is dead wrong. The set up may be somewhat similar, but it is completely legitimate and you are rewarded on how good of a job you do signing people up, exactly like a real job. You only make what you earn!

And the best part of it all is there is no limit on how much money you can make. If you are a wiz at getting people to sign up for affiliate marketing through your site, the amount of commission you could be chalking up is staggering. Two-tier affiliate sites might just be the best and easiest way for you to run a business from home that is profitable and has almost no hassle. So, what are you waiting for? Join up today and start collecting commission now!

Is affiliate marketing MLM?

Because affiliate marketing works so well and seems to genuinely benefit both the website that is advertising as well as the website that is hosting, people tend to look for problems that just don’t exist. One of the “problems” that has dogged affiliate marketing for years is the idea that is is a multi-level marketing scheme.

What is multi-level marketing? It’s much better known as a pyramid scheme. In most traditional cases, pyramid schemes are illegal. They work by constantly signing up new people to sell a product that doesn’t actually exist. The people at the top of the pyramid make money be collecting a commission off of all the sales that happen below them in the pyramid structure.

In recent years, pyramid schemes have tried to gain a bit of respectability by offering legitimate products like phone cards that made the whole operation legal. But, in essence, pyramid schemes are still tainted by the perception that they are inherently dishonest and, unless you start a pyramid scheme and are at the top of the pyramid, you’re earning money for someone else.

Affiliate marketing is, in no conceivable way, multi-level marketing. In most cases, a site that wants to advertise pays another site to direct traffic to them. There are multi-level affiliate marketing set ups that have one site direct traffic to another site and then that site directs people to the site that pays both previous sites, but even in this case, the customer isn’t tricked or misled and there isn’t any sort of financial transaction that takes place, either. Multi-tiered affiliate marketing is simply another way for web pages to create traffic and revenue.

The way earnings work for multi-level affiliate marketing is different than a pyramid scheme, as well. Is it true that in the end, the site that is being linked to makes the most money? Sure, but that’s because they are the ones offering the product or service. The other sites are simply steering customers to them. With multi level affiliate marketing, everyone makes money and assuming a legitimate good or service is being sold at the end of the path, the consumer ends up happy, too. It can be a little confusing for those new to Multi level affiliate marketing to tell the difference between it and a pyramid scheme. But rest assured the two have very little in common, most importantly the fact that almost all pyramid schemes are illegal while multi level affiliate marketing is quite legal and a very effective tool in Internet advertising,

   Affiliate marketing, a business with no hassle

For many people, the lure of working from home is too strong to resists. Being able to set up your own hours, your own schedule and your own your speed is an extremely attractive way of living to most people. But the thought of setting up your own web-based business can be a huge hassle. You have to have a web design, a product and then you have to sell it, ship it and handle customers. A much easier way to work from home and run a web-based business is called affiliate marketing.

Setting up a site that works as an affiliate marketing site isn’t really that hard. There are many different web-page building programs out there that walk you through every step of the process. Once you have a functional web site, you need to come up with a list of companies that will pay you to link to them. Many major websites like Amazon have an affiliate program that you can join and then get paid for simply linking to their website.

But if you really want to cash in, you don’t want a webpage with just a list of links on it. This may earn you a buck or two, but when most web surfers stumble upon these kinds of pages after a Google search, they tend to get frustrated and leave. The best route for you to go is to provide interesting web content that relates to the company you’re linking to. If you can’t write interesting web content yourself, there are many companies that will do it for you for a very reasonable price. Once you’ve got your content, you can weave your links throughout it. People will find your web page on search engines like Google, Yahoo and Ask.com and when they see the well-written content, they will hang around and read what’s on your site. They will, in most cases, click on the links provided and you’ll be counting the cash in no time flat.

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