What is Online Affiliate Marketing? A Beginner’s Guide

What is Online Affiliate Marketing?

What is online affiliate marketing?  Great question, and if you’re asking, you’ve probably been researching how to make money online.

This is a great way to make money online.  Better yet, you can make money while you sleep…

Imagine waking up one morning and seeing this report on your computer…

how is online affiliate marketing making money?

That’s what you call passive income.  The commissions came in while you slept.  This is an example of affiliate marketing.  It’s a form of revenue sharing between you and a merchant.

Let’s take a better look at what it is, and how it works.

And if you’d like to know where I learned all this, click here.

 

 

Definition of Affiliate Marketing

Wikipedia defines it as “a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts”.

Simply put, affiliate marketing is an agreement between you and a company, to promote their product and receive a commission if someone buys that product.

So…. you get paid for selling other people’s stuff.

Why Online?

E-commerce has grown rapidly over the past 20 years. Many retail businesses have an online component while others are strictly online with no brick and mortar store.  Think of Amazon and eBay.

After the start of the World Wide Web, many businesses like Amazon, for instance, began to see the benefit of paying commissions to their “associates” who sent them potential buyers from the associate’s own online business. If a sale occurred, the commission was paid to the associate.

This “pay for performance” model is very beneficial for merchants. The only cost the merchants incurred is the commission. There are no salary or advertising budgets required.

Today, online shopping is one of the most popular activities on the Internet.  In 2017 alone, worldwide e-retail revenue amounted to 2.3 trillion US dollars. The projected revenue by 2021 is 4.88 trillion US dollars.