Understanding Affiliate Marketing

“What is affiliate marketing?” We are all bowled over by the same question when we hear that people are making a huge amount of money in this field. We kind of get inferiority back when we see that people are actually implementing something that we haven't even heard of! So let's not stay ignorant any further and try and explore this mesmerizing field. Let's start from the basics.

Consider an example of a simple business ‘A'. ‘A' needs to advertise his products, so he convinces ‘B', who knows a lot of people, to promote his business. In return, ‘A' will pay him commission according to a bond they sign (it can be share per walk in, or percentage per customer, etc.). This was a simple example in layman terminology. To understand the basic of Affiliate Marketing, replace ‘A' and ‘B' by websites.

Website ‘A' chooses website ‘B' to advertise its products. ‘A' can pay ‘B' either through Pay-per-Click (for each visitor), or Pay-per-Lead (for each registration), or Pay-per-Sale (commission for each sale).

Now that we've understood the essence of Affiliate Marketing, another very common query that arises is that “How do I go about implementing it in my business”?

The first obvious step to do that would be, create your website.

Once you're done with that, you can choose out of a variety of choices available in the affiliate network. For example, search engine affiliates who essentially rely upon the Pay-per-Click commission, Retail sites that compare various products of the same category, booking a site exclusively for your advertisements, Review sites, Blogs and the list extents with your creativity and business thought process.

Being a business person, the next question that I would put forward is “How will it enhance my sales?” Visualize it this way, you have just built a website for your business and obviously, not many people know about it. Being a global business person you cannot call each of your clients to inform. That would not be a practical thing to do! Instead, hunt for a website that it already a hit amongst the internet surfers, and also use your business wit and look for sites whose contents relate to your product. This way, many people would be directed to your site, and in turn you would have to pay a minimal amount to the site.

Apart from the various promotion techniques that are available, why only Affiliate Marketing? The advertising techniques can be as many as you can think of. Promoting business is nothing but using your resources to the utmost. But then the question is “what are the reasons that Affiliate Marketing is such a hit”? This is so because; it is a “Pay per Performance” technique. You get pamphlets and hoardings printed, but you never know if you will have any walk ins or not. But in case of Affiliate Marketing, you pay only after you get a query or a customer!

Wishing you a very prosperous business!!


Tarang Bhargava is the CEO of Vexat Inc. and has an affiliate marketing experience of six years. Currently promoting CPA offers from vCommission(http://www.vcommission.com)

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