We have received requests, from several of our readers, who would like to know more about affiliate marketing. Not just the usual overview, as is so common, but some real facts, to help them decide which to pursue.

As this is quite a lengthy response, we have had to split the topic into 4 parts. If you missed any of these parts, just go to our site at http://dersalsites.com/southafricanbusiness/ and look for the others.

In the last article we discussed attitude and an overview to working as an Affiliate Marketer. We left off with the question: What exactly is an Affiliate Program?” This article will attempt to answer that question.

What Exactly Is An Affiliate Program?

An affiliate program is also known as a reseller, associate, referral, or partnership program and is essentially a revenue-sharing arrangement, whereby you, the affiliate, receive payments, from the owner of a product, or service that you promote, on their behalf.

Affiliate programs are an excellent way, for the new internet entrepreneur, to start an online business.

Types Of Affiliate Programs

There are various types of affiliate programs. The most simple type involves you, as the affiliate, placing a banner ad, graphic, or text link on your site, which is linked to the site of the business, you are promoting. This link is coded, with your unique affiliate ID, so that the site visitor is recorded, at the target site, as having originated from your site, thereby allowing you to be credited with the sale.

Payment is generally a fixed percentage of the sale value, known as a commission, or “pay per click”, where the affiliate is paid a certain amount, every time a site visitor clicks on the link at the affiliate’s site, whether, or not a sale is made.

Some of the more sophisticated affiliate programs, are multi-tiered and allow the affiliate to earn commissions, not only on the traffic they directly refer to the target site, but also a proportion of sales generated by their sub-affiliates.

Affiliate Marketing 2.0

In this 30 page tutorial, they go over every aspect, like blogging, articles, sales copy, email marketing and numerous other important factors. Nothing has been left out. This contains all you need to know and every question you may have, is answered. They discuss list building, joint ventures, s.e.o, advertising and all the monetization methods. If you ever wanted to earn the big bucks and use affiliate marketing, to build your bank account, you simply have to see this. There is no alternative. You can carry on battling, or you can implement tried and tested principles, together with the latest technology.

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Benefits Of Affiliate Programs

The greatest benefit of affiliate programs, is that when you are just starting out, in your own online business, you don’t have to worry about creating your own products, or services. You just promote someone else’s product and get a share of the revenue, for your efforts.

You also don’t have to concern yourself, with warehousing, transport, or logistics headaches. All of this is handled by the business, whose products, or services you are promoting. All you need to concentrate on, is driving traffic to that business’s website. This means that a high proportion of your revenue, is pure profit.

The owner of the product, or service, is also responsible for collecting payments, customer service and a myriad of other details, that come up on a day to day basis, in running the business.

Disadvantages Of Affiliate Pograms

The main and most obvious disadvantage of affiliate programs, is that it is the owner of the product, or service, who earns the lion’s share of the profits, on the sales.

You’re working only on commission. You will never earn, by way of affiliate program commissions, as much as you can earn, by way of profits, from producing and selling your own products, or services.

As a result, affiliate programs represent a high opportunity cost, when you consider what you could earn, if you instead channelled the time and energy, that you spend on promoting affiliate programs, into creating and promoting your own products, or services.

For this reason, it does not make sound business sense, to rely solely on affiliate program income, for the longer term growth of your business.

Instead, think of them as a way of testing the water, when you first getting started, and a nice little sideline, once you’ve created your own products, or services. Do not build your business around affiliate programs, with the sole intention that this will always be the backbone of your business. You’ll be stunting your own growth, if you do.
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Derek Robson is a South African Internet marketer. He has a vision of empowering all fellow South Africans and other non U.S folk, to have equal opportunity and success on the internet, by finding solutions to the many obstacles facing them. He is a syndicated article writer. He and his wife Sally, have started a string of sites, resources, courses and articles, as part of Dersalsites. For daily postings and articles, on Internet marketing, South African online business, list building, affiliate marketing, article marketing, blogging, seo, the law of attraction, rugby and other general topics, visit Derek at: http://dersalsites.com/southafricanbusiness/  

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