Affiliate marketing is one of fastest growing ways to make money on Internet. You can become an affiliate for any number of thousands of companies. Most of time it is quick, easy, and free to join.
To start with, you basically sign up as an affiliate and agree to receive a commission on every sale that you refer to company. You can refer customers from a website, newsletter, advertisements, or almost any other way that you can think to promote a product.
You can get started very quickly and cheaply compared to almost any other business opportunity. Although it isn't as easy as putting up some banners and waiting for checks to roll in, affiliate programs do avoid problems of inventory, shipping, customer service, or variety of other issues that a business must address.
Second Stream Income
Affiliate programs make a great way to supplement you income if you already have a product or service that you are selling. Half battle is getting people to visit your website, so if you are already generating a good amount of traffic, then adding related affiliate programs and promoting them correctly can add a good sized stream of income to your business.
Pick a Program
One of most important steps in starting an affiliate program is making sure that you sign up with right company. There are a number of factors to consider.
1. Commission - Some companies pay as low as 2% commission, while others can reach upwards of 60-70%. Obviously you aren't going to make any money promoting a product that you receive a very small percentage of sale. Your best off making sure to get at least 20% of sale.
2. Product Price - You also want to pay attention to how much product costs. You might make 50% commission, but if product only costs $6, then you are only going to get $3 a referral. You can do much better, you should be able to get at least $20 per referral for any good paying affiliate program.
Find a product with both a decent commission and a decent price. Your primary goal is making money, so make most of your time spent referring customers.
3. Two-Tier Programs - There are programs that pay you a commission on direct referrals, and then they pay you a smaller commission on all referrals from affiliates that you signed up. This is a great perk, although previous two factors are more important.