Earning Money at Home Through Affiliate Marketing
It could have many definitions, but affiliate marketing is just referral marketing where you get paid a commission depending on the structure that was set by the online merchant or retailer.
People delve into affiliate marketing because of the earning potential- all while doing it at the comfort of their own homes.
Today, I am going to talk about how you can get paid through affiliate marketing so that you will understand the concept even better.
How Do Affiliate Marketers Get Paid?
As mentioned at the beginning of the article, affiliate marketers are actually paid depending on the commission structure that the online merchant or retailer uses.
One of the first and once-popular commissions structures used back in the day is known as the PPC or pay-per-click scheme. This is where anytime the ad is placed on the affiliate marketer’s website and people actually click on them, they receive a small percentage in return.
However, because of the potential abuse of marketers, whereby they use a software program to generate the clicks, this commission model is scrapped in favor of other safer schemes.
Another quite popular structure that is used even to this day is the Pay-Per-Lead model which is basically where the publisher is given a commission for every person who clicks on the affiliate link and signs up for a free trial or newsletter or what have you.
For example, if you are an affiliate of an online security program, every time one of your audience signs up for a free trial, you are paid a small fee just by the fact that that person has signed up to the service.
However, the most common payment model used by online merchants today is the pay-per-sale model which is a performance-based commission structure that only pays the affiliate marketer a commission for every sale that was done using the affiliate link they were provided.
Using the latter is actually a win-win for both parties since online merchants need not worry about scummy practices and affiliate marketers are paid a larger commission based on the price of the item that was sold.
Once the affiliate marketer is paid some commissions, the money that they’ve acquired will either be wired to their bank or wired to their online payment portal of choice (Paypal is one of the most popular examples).
The Pros of Affiliate Marketing
There are plenty of reasons why people look into affiliate marketing to help them earn a considerable and passive income stream. Some reasons are as follows:
- No Initial Capital Required- if you already have a computer and internet connection and a website that has been running for a while, you can pretty much start enrolling yourself in an affiliate program
- No Need for Product Creation- your sole responsibility is to help promote the products that your affiliate program tells to you to market
- Vast Market- there are so many affiliate programs out there based on a variety of niches and industries. Seriously, just take your time to research on a particular niche and you are going to get some affiliate programs where you can potentially earn a lot of money.