If you have ever considered trying to earn money online you probably didn’t have to look far to see all kinds of products and websites about Affiliate Marketing. Affiliate Marketing is one of the most common ways for the average person to earn and income on the internet. As you may already know an affiliate is simply an internet based salesperson for someone else’s products. Most of the e-books and internet marketing courses you have seen online were in fact probably advertised by an affiliate marketer. So whether you realized it or not you have already been involved with affiliate marketing, except you were the prospect or customer rather than the marketer.
What follows is an overview and some information most gurus won’t tell you. Incidentally, the reason why gurus who write these materials so highly recommend affiliate marketing is because they are the ones who produce (and profit from) the products that many affiliates sell. netsolution By encouraging their readers to become affiliate marketers (especially for their products) they build a virtual army of salespeople promoting and selling their e-books, online videos, and courses for them. Guru internet marketers create and sell products about internet marketing to others wishing to make money online. Indeed, courses and e-books about internet marketing are the top digital info products purchased online. So, lets take a look at the affiliate business.
Most affiliate programs will have a single commission compensation plan but some will utilize a multi-tiered system. Here’s the difference: A single commission plan will pay each affiliate a set percentage for each sale they make through their affiliate link. A multiple tiered program will pay the affiliate a commission on their own sales but also will pay a percentage on the sales of affiliates referred by the primary affiliate. For instance Mary promotes ‘Jumpin’ Juice’ for ABC Company. For every person that buys a bottle of the juice through her website the company pays her a commission. Mary also advertises for others to sell ‘Jumpin’ Juice’. Joe sees Mary’s affiliate link and want to be an affiliate himself. When Joe chooses to become an affiliate like Mary and signs up through Mary’s website Mary will get paid a percentage of all the sales Joe makes. If another tier is available Mary will also earn a small percentage on the sales of the people Joe signs up as affiliates. Now this may sound a little like network marketing but let me explain the difference.
Tiered affiliate programs generally will only offer one or two tiers. There will be a high percentage paid on the affiliates personal sales and then a small percentage paid on the 1st tier. One company I’m associated with for example pays me 50% on my personal sales and then 10% on the sales of the people I recruit as fellow affiliates. So you can see in multi-tiered affiliate programs there is not a big motivation to do a lot of recruiting. It is a nice feature though if so if you do happen to tell someone else about your program you will earn a little for doing so. Affiliate programs are focused on the personal sales volume, not recruiting. Network marketing on the other hand, goes beyond a retailing commission and emphasizes the recruiting of others who will both purchase/sell products and recruit others who do so. MLMs encourages perpetuation of recruiting by spreading the commission through multiple tiers (referred to as levels).