Tuesday, December 30, 2008

Affiliate Marketing Basics

By Don Bethune

Affiliate marketing are a group of marketing programs which allow advertisers to reimburse webmasters for putting up advertisements on their webpage or within the e-mails they send. In the same way an particular company would pay for space in the newspaper or on a billboard, they pay for space on your website.

Due to its simplicity of operation the affiliate marketing program has become the most famous methods of how to make money from home. This program can suit to anyone and everyone on this planet. Even housewives who dream of a ahome business work at homea can earn from this.

From the above lines a simple question arises. How and why do advertisers pay to webmasters for just putting up their advertisements? Well the answer is more than simple. Webmasters who receive several thousands hits a day on their webpage are among the top that are posted on various search engines.

The more traffic the site sees, the more likely a user is to click through the ad link on a website. Paying for ad space on these popular sites can potentially result in hundreds of new customers each day. Advertising space is therefore priced based on the hits that the website receives.

Advertisers using affiliate marketing programs to place ads on a website other than their own arrange payments into several different reimbursement types or payment scales. Some of the most common pay scales are referred to as per click, per thousand, per action, per lead, and many others.

Similar analogies stand for the others. For example cost per thousand means getting paid for a thousand clicks of the advertisers adds and cost per action means getting paid everytime a certain action is performed. Cost per lead is similar to cost per action.

How do webmasters choose the right affiliate marketing program for their websites? Many simply search the internet! The best way to determine which program best suits a webmaster is to search for affiliate programs, evaluate the payments schedules, and determine if ad placement is suitable for their site (size and location requirements).

Income from affiliate marketing can vary widely and is highly dependent on the number of hits your website receives. Another consideration is that part or all of the income generated may be considered taxable income on the city, state, or federal level; it is best to check with your local tax office. Regardless, the income potential is boundless and worth looking into if you have the space on your website.

About the Author:

No comments: