What is Affiliate Marketing?

There are various methods to earn money online. Affiliate Marketing is one of them. At present affiliate marketing is considered as one of the best means to earn money online. It is a revenue sharing venture between a website owner called an Affiliate and an online merchant having its own website. Affiliate website shall work under merchant website. Affiliate website owner will place ads on his website to either sell the merchant's products or to send customers to the merchant's website for sharing the profits.

There are three ways to earn money affiliate marketing.

1. Pay per click - When a customer visits the affiliate website and clicks on the link leading to the merchant's website, the affiliate gets some amount as commission. This may be a small amount but if the affiliate is capable of drawing a large traffic, in the end of month he gets thousands of dollars.

2. Pay per sale - When a product is sold out as a result of advertising on the affiliate's website, some amount of commission is deposited into the affiliate's account.

3. Pay per lead - Every time a client registers at the merchant's website as a result of ads on the affiliate's website, a fixed amount is deposited into the affiliate's account.

So for an affiliate by sitting at home, this is a great way to earn extra money without having to do anything. However one has to popularise his website by submitting his URL to major search engines, by writing articles or by doing press releases.

It is also beneficial for the merchants. By recruiting affiliates, he has free advertising and doesn't need to do much selling on his own. The more affiliate websites a merchant have, the more exposure his products get. He only places ads on affiliate websites.

For an affiliate it is very important to choose such a merchant from whom he gets substantial payment regularly. Otherwise he will suffer from frustration. The relationship between the affiliate and the merchant should be mutually beneficial. It should be a win - win situation for both.

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