The Affiliate Marketing Business Model Explained

Affiliate marketing is one the simplest methods of starting up an online business. As an affiliate, you promote and sell services and products which have been created by another people. The product owner then pays you a commission when you make a sale. The affiliate marketing business model works very well for many online entrepreneurs around the world.

How Affiliate Marketing Works.

To start off an affiliate marketing business, you initially need to join an affiliate program. These are typically free. This is an arrangement between you and the product owner or company that has the affiliate program. Your task is to send them customers who are interested in buying their products or services and their job is to pay you a commission on each and every sale you make for them.

When you become an affiliate marketer, the product owner will allocate you a unique affiliate ID, which you then use by inserting it into their website address. It may simply be a set of numbers and letters that you add on the the end of their existing website URL or the affiliate program may allocate you a completely unique website link. This is your unique affiliate link to the product owner’s website.

When you direct a potential customer to the product owner’s website with your unique affiliate link, you will be identified as the affiliate. The potential customer will be not see any difference on the website’s product pages. Each time a prospective customer uses your link to click through to the website to buy something, you’re paid a percentage of the value of that sale.

Tracking Your Internet Affiliate Marketing Business.

You may be wondering how the product owner knows that it is you that has sent the customer to their website, especially if they have many different affiliates sending them customers for many different products (like Amazon or ClickBank).

When a potential customer clicks on your unique affiliate link, your link is automatically embedded in a small file, called a cookie, that is saved on the their computer. Cookie technology works for many things, for example when your computer “remembers” your password and user ID when you log into one of your online accounts.

When that visitor buys something from the website, the cookie shares your affiliate ID, so the product owner instantly knows that you are the affiliate and that any commission from that sale should be paid to you. ObviouslyComputer Technology Articles, it is vitally important for your affiliate marketing business that always use the correct affiliate ID on all your links to ensure you get your rewards!