What Is Affiliate Marketing

Affiliate marketing is having Affiliates do your Marketing for you. What I mean by Affiliate is someone who tells people about your product or service and you pay them for a desired response, such as a purchase.

Affiliate Marketing is one of the best ways to get the word out about your product or service.

The best way to pay Affiliates is pay per sale. This means that you only have to pay your Affiliates when they actually make a sale. This reduces your advertising costs dramatically. Your Affiliates take on all the risks, so you don’t have to worry about wasting your money on advertising which may not produce any results.

Using Affiliate is a very cheap way to advertise,.However, it is very effective. The software required to start up your own Affiliate program can cost only about $50 per month.

Then, you just wait for people to start promoting your product or service for you.

Please remember that 5% of your Affiliates will do 95% of the selling. What I mean by this is that, most of your Affiliates will just sit there and do nothing. This can be countered if you teach them what to do, exactly how to do it and providing everything for them, so they have to do as little work as possible.

You don’t have to use this form of advertising just to sell your product or service. You can also use it to grow your opt-in mailing list. This is discussed in another article.

How Much Should You Pay Your Affiliates

How much you pay your Affiliates really depends on how much your product or service costs, its profit margin, how much you’re willing to give up and what action you want to take place.

Let’s say that your product is priced at $100. Let’s also assume that it cost you $10 to make it. This leaves you with $90 profit.

How much of this do you want to give away to the person that made this sale possible?

Personally, I believe that you should give a rather high percentage of the profits back to the affiliate (Depending on how many sales they regularly generate), because without them, you wouldn’t have made that particular sale at all. So, reward them for it.