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What Is Affiliate Marketing?

Affiliate marketing is basically a cooperative effort between a merchants and an affiliate’s website.
What does that mean?
The affiliate (you) is a web site owner that promotes one or more merchants and their affiliate programs on their website. It is a revenue sharing (rev share) business relationship between the affiliate who agrees to promote the products or services, and the merchant who offers them.

To make money online, the affiliate advertises the merchant's services or products on their own website (or through other forms of internet promotion) and earns a commission for every successful referral. When you refer a customer to the merchant's website, and that visitor makes a purchase you, the affiliate, get a share of the profit.

Affiliate marketing programs are extremely popular as an online business option for both merchants and affiliates.  Why?  The most probable reason could be the fact there has been a huge increase in people purchasing online. The financial benefits of affiliate marketing have become a lot greater now than they were before. Today, both the merchants and the affiliates can see clearly that affiliate marketing can make money for both of them. 

The merchant sees it as the chance to advertise their products at a lower cost.  By taking advantage of performance based marketing the merchant has access to markets and customers without spending valuable time searching for them.
For no up front investment (unlike paid advertising) they can produce interest for their product or service and drive the consumer to their website. For many years now, it has proved to be a cost-efficient, measurable method of delivering long-tern results.

The affiliates sees it as an easy way of earning profits online without having provide their own product or service or face high set up and investment costs. Affiliate programs are usually fee to join and an internet marketing business can me run by investing as few or as many hours as you wish, usually working form home. The affiliate can promote one or more merchants and their affiliate programs. Dependant of course on the time and energy invested, affiliate marketing can generate a high full-time income for the affiliate. Earnings are based on either of the following:
1.The number of visits (Pay-per-click. PPC) 2.Registrant (Pay-per-lead PPL) 3.A commission for each sale (Pay-per-sale PPS or Rev Share - RS)

Affiliate marketing is a great situation for the marketer and the affiliate. If they work together, it can be of a financial advantage to both.
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