According to Wikipedia affiliate marketing is defined as a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing effort. Examples include rewards sites, where users are rewarded with cash or gifts, for the completion of an offer, and the referral of others to the site.
So what does that mean?
1. Marketing. You get paid to promote your affiliate site. That is the main thing you do.
2. Business. An affiliate merchant rewards you. You will need to join their affiliate program. Most of the time this is free.
3. Visitors or customers. This means you could be selling or doing something else.
4. Reward sites. You are going to get paid by cash or gifts. This is your reward for doing the work.
5. Referrals. A good way to make money is to refer people to the affiliate program. 2 tier affiliate programs pay you on the efforts of the people you recruit.
I can tell you from personal experience that the hardest part of affiliate marketing is promoting your affiliate site. This is why a good affiliate program is going to reward you very well for your efforts.
For example ClickBank affiliates get paid to sell digital ebooks. Commission rates generally run around 50% or higher. Some merchants will pay you 75% of the sale price. Where else can you go and earn a 75% commission rate?
Google Adsense is an affiliate program that pays out hundreds millions of dollars in commissions every year. You make money when a website visitor clicks on an ad that Google has sold for you.
Think about that for a minute. You do not have to sell the advertising. Google sells the ads, but they need you to get website traffic to click on them.
Lead generation has always been an important part of any business marketing strategy. In affiliate marketing you can make a lot of money getting leads for businesses.
Websites such as Commission Junction offer an excellent affiliate program. They bring all of the advertisers to you, and even provide you with marketing materials to promote.
Two-tier affiliate marketing is not for everyone. If you like working with people this is a good business model to be in. People who are good at social networking do well in 2 tier affiliate programs.
This should give you some idea on what exactly affiliate marketing means. You can make money with affiliate programs in many different ways!
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