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Affiliate Marketing is a business between a website owner and an online merchant through which part of the revenue is shared by the online merchant to the website owner. A third person who gets involved between website owner and online merchant is called as Affiliate Network.

The person who owns the website may either place an advertisement of the merchant’s product or my send potential customer through direct linking to merchant’s website for which he will get a commission or share of profit in return if the customer purchases the online merchant’s product.

Affiliate Marketing

The key terminologies in Affiliate Marketing are defined below:-

Merchant: Merchant is a person who owns the product. He cannot directly spend money on Advertisement; hence he submits the product to Affiliate Networks like Click Bank for which he pays a marginal fee.

Affiliate Networks:- Affiliate Network’s are Sites which publishes the Product submitted by Online Merchants for a small fee.

Affiliate Marketer:- Affiliate Marketer is a person who publishes through an Advertisement the Online Merchant’s product either on his website or through direct linking. He receives commission from the Affiliate Network which can go upto 75% – 80% of the procuct value.

In simple term for an Affiliate Marketer the profit is the Advertisement Cost less the Commission Earned.

Many website owners make big extra income just by publishing the links or products on their website. All what is required is placing an advertisement on the affiliate’s website. Some times he can use direct marketing techniques like publishing the advertisement in various networks like Google, MSN or Yahoo.

It’s also beneficial to the merchant. By placing affiliate marketing advertising on websites all over the Internet, he has free advertising and doesn’t need to do much selling on his own. The more websites a merchant is affiliated with, the more exposure his products get, and all he has to do is allow ads for his products to appear on someone else’s website.

Sometimes Affiliates use unethical means to bring customers otherwise called as Traffic to their website and sell merchant’s products, for which merchant has to contend with doing a small damage control on his reputation. Some times affiliates gives false promises based on which a customer would have purchased the product but in real terms it may turn out to be a fake.

If an affiliate marketer wants to really try out a product then he should do a thorough research on the merchant before starting the advertisement. He should agree clearly the terms and conditions with the merchant. By not doing this can end in merchant refusing to pay the commission or fee. This is a very rare situation as most of the merchants and affiliates share a real good relationship.

Affiliate marketing is the best and simple way to earn money online. However, if it is not done in a professional manner, it may turn out to be a big flop as it is only some 2% of the affiliates who become really successful and become super affiliates in affiliate marketing.

The author is Madhan Kumar is an affiliate marketer and can contact him at admin@madhanskumar.com.

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