What Is Affiliate Marketing? A Simple Definition For Dummies

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The Basics

Affiliate marketing is a multi-billion industry, you would probably be amazed about how widely spread it is. But what is this thing? Nothing that special, it is simply: selling other people’s stuff, that’s all! No need of fancy and complicated definitions. And it is also one of the most lucrative ways to make money online. It has made hundreds of thousands of people millionaires and many more make a living this way. But it’s not as easy, as a walk in the park… I don’t want to make such an impression. It is a business like any other and if you want to be profitable, you need to take it seriously. However, the purpose of this article is not to deeply explore affiliate marketing, but to give you a basic idea about what it is and how you can make money with it.

What Exactly Affiliate Marketing Is…

What Is Affiliate Marketing, pic sxc.hu

An official definition: Affiliate marketing is a performance based way of selling a product or service. The business/person that owns the right for the product pays a per sale affiliate commission to the affiliates that sell the product on their own.

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The more the affiliates sell, the more they get paid and the more income for the product owner. This is how everyone is happy.

An Example

To be clearer, lets take a look at an example… Imagine that John is an expert in making websites. He has a something valuable – knowledge, that can help other people to make their own sites themselves. So John decides to create an e-book titled “Build a Site in 5 Steps!”. That’s great, he writes it in a couple of weeks and puts a price tag of $50 for it. As a main marketing strategy, he chooses to use affiliate marketing. So he creates a site for his product and offers anyone the opportunity to sell his book for a commission of 50% of the price or $25. Michael comes across this offer, and he thinks that he can offer this book to the visitors of his site about web design. He writes an article about the reading, describing it as a great way for all newbies to have their own web place and puts a link (containing his affiliate id) to the product site of John in it. Some of his visitors come across the article and after reading it, they click on the link and go straight to the e-book’s offer page. If someone decides to buy, she pays $50 for the book to John, and then John pays $25 commission to Michael for leading the customer. And this way everyone is happy! The buyer gets the reading, the promoter gets his pay and the author without any work receives the other half.

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