So What is Affiliate Marketing?What is Affiliate Marketing? Affiliate marketing, simply put, is a system of earning commissions for referring people to buy products from on-line stores. As the affiliate marketer, You don't have to own the store. You don't have to process the order. Think of it this way: What is Affiliate Marketing? See Timmy's Lemonade Stand.
It's a hot, summer day. Timmy, your buddy 3 streets across, has set up a lemonade stand in front of his house. His lemonade is good. His stand is colorful. And at 10 cents a cup, it's a sweet deal! But he's only getting kids on his block to buy lemonade. If you hadn't come over to play Nintendo Wii with Timmy, you never would have known about his awesome lemonade! So here's what you tell Timmy - "Hey Timmy, how about I go back to my street, and tell all the kids about your awesome lemonade? Then, for each kid that comes over and says they heard about your lemonade from me, you give me 2 cents?"
Timmy thinks about it, and then says: "Well, what if no kids from your block come over?" You tell Timmy - "Well then, it won't cost you a lime. I mean dime. Or a nickel. Not even a penny, Timmy." Timmy thinks about it and then says: "Well, how will I know which kids are from your street?" You tell Timmy - "Well then, I'll give each kid that I talk to a plastic cookie from my sister's Easy Bake set. Every time they have an Easy Bake Oven cookie, then save me 2 cents." "DEAL," Timmy says, and you shake on it. What Is Affiliate Marketing, and why does it work?
Over the next week, you tell all your pals on the street about Timmy's great Lemonade. At football practice, you tell everyone as well. You even tell people in your class. The following Saturday, lots of your friends come by to have some of Timmy's lemonade. Meanwhile, you spend your Saturday hanging out with your Dad. On the next day, Timmy comes by and pays you your affiliate marketing commissions! CHA-CHING!
As sweet of a deal as this is for you... here's what happens next: The daughter of your football team coach, who's also in your class at school, decides to open up a Lemonade stand. Same lemonade, same price. She even has an affiliate program. But in a few weeks she all but puts Timmy out of business.
>> Next: Earning lifetime commissions (residual income) from an affiliate program. What Is Affiliate Marketing? The Definitive eBookWhat is Affiliate Marketing? The Masters Course (free PDF). |
