Definitions Of Affiliate Marketing On The Web

Published Date: 02 Nov 2017

Business Made Easy by Affiliate Marketing

AUTHORS:

* K.VENUGOPAL

Faculty Member; Aditya Institute of Technology & Management, TEKKALI, Srikakulam Andhra.Pradesh, Mobile: 09866663988 E-mail: [email protected]

** SAUMENDRA DAS

Faculty Member; Aditya Institute of Technology & Management, TEKKALI, Srikakulam, Andhra Pradesh; Mobile: 09490762686 E-mail: [email protected]

***Guntuboina Ravi Kumar. L.S

Research Scholar, DCMS, Andhra University, Visakhapatnam, Andhra.Pradesh,

Mobile: 09849049820 ; E-mail: [email protected]

BUSINESS MADE EASY BY AFFILIATE MARKETING

*K.VENUGOPAL **SAUMENDRA DAS ***G.RAVIKUMAR LS

ABSTRACT

Affiliate marketing is an important source of many things. It can provide the necessary tools for the creative and hardworking individual to venture out on their own. Affiliate marketing can provide ample opportunity to earn money doing what you are good at. It also allows someone to use their skills and expertise for their own financial gain, rather than the financial gain of another person or entity. Affiliate marketing can get people started in their own business enterprises with nearly no cost or risk to themselves. Affiliate marketing can do all of those things and many more with respect to recent trends in web marketing. First, Affiliate marketing is perfect for the independent hardworking individual. Next Affiliate marketing can provide the opportunity to earn money by doing something that you are good at. And finally, Affiliate marketing can get someone started in their own business at nearly no cost or risk to themselves. To know more about the concept, here basically we emphasized on the trends and opportunities on affiliation and their use in modern business through referrals in web based marketing.

Key Words: Affiliate Marketing, SEO, Internet Marketing, Referral services, Work hours etc.

FULL PAPER

Introduction

Now a days it is inevitable for the individual for their performance based reward where the individual can easily connect large number people at a time through the help of affiliate marketing. Since affiliate marketing is becoming an important source of customer acquisition, a businessman can create a network of affiliate organizations that refer customers to its site through internet whether at home or at office. Possible affiliates include sellers of products and services, web sites connecting a group of customers with joint interests, or professional referral services. Many of the business whether it is small or big use affiliate marketing (Dysart 2002; Fox 2000; Oberndorf 1999) and as such it became popular source of customer acquisition (Fox 2000; Helmstetter and Metivier 2000; Ray 2001). When a business decides that they would like to have some help selling their product or service, they will then start an affiliate program by the help of a necessary tool like affiliate marketing.

Since affiliate marketing is an important source of many things. It can provide the necessary tools for the creative and hardworking individual to venture out on their own. Affiliate marketing can provide the opportunity to earn money doing what you are good at. It also allows someone to use their skills and expertise for their own financial gain, rather than the financial gain of another person or entity. Affiliate marketing can get people started in their own business enterprises with nearly no cost or risk to themselves. Affiliate marketing can do all of those things and more. First, Affiliate marketing is perfect for the independent hardworking individual. Many of us are stuck in day to day jobs. We work incredibly hard and receive little reward. There is nearly no incentive to work harder. When you work in the field of affiliate marketing, the world is your oyster. You paid by your performance so the harder you work, generally the better of you’ll be. When you work as an affiliate, you are working as a representative of another company. However, your reward is directly linked with what you produce. If you’re someone who frequently gets good results at work then this could be a great opportunity for you.

Next Affiliate marketing can provide the opportunity to earn money by doing something that you are good at. Those that have a knack for sales and marketing are perfect for affiliate marketing. Those that are creative and used to hard work can also make an excellent living. Your skills will be used to work for you. If you have a natural knack for these kinds of projects then why not have them increase your bank balance and not someone else’s? As an affiliate, anything that you do to increase sales or traffic if it is internet based will benefit you and you directly. The company won’t get rich while you say poor. You’re the one who will reap the rewards.

And finally, Affiliate marketing can get someone started in their own business at nearly no cost or risk to themselves. Many of us would love to work for ourselves. The two main reasons why we don’t have money or risk? You need a decent amount of capital to start even a small business. The risk involved is also tremendous with more than half of small businesses failing in the first year. Affiliate marketing can get you started working for yourself. They handle all of the products and advertising and you just concentrate on selling. If yours is an internet based program, you concentrate on increasing traffic. Most of these programs are free or involve very low initial start up costs. You’re paid according to how well you do regardless of how the company is performing.

There are many different types of affiliate marketing programs. There are those that offer one time commissions off of a sale. Some of them might offer lifetime commissions, and others may pay just for leads that you can get them. Whether it is for a newsletter lead, or something else just having interested parties sign up for things for more information is another one. The type of affiliate program that you choose to have is completely up to the person that is the owner of the business. They can decide the percentage, or flat rate that they are willing to pay for a sale or a lead. Then those interested can sign up and help them make sales and get leads for a certain amount of money.

Those signing up for affiliate marketing, and different programs to sell for others, can do this many ways. They can promote the services or the products on a website that is relevant to the affiliate programs that they are a part of. Or they can also promote them on a blog. Both of these are great ways to get traffic to your affiliate programs and make sales from them. Some even use email and newsletter marketing as a way to get sales for others as well. Whichever technique and way that you decide to use is up to you.

Choosing the affiliate marketing programs that you want to go with is not hard to do at all. Choose something that you know about, and that you can be known as an expert about. The more passionate you are about the service or product, the better, as it will shine through. Once you have all of your programs in place, check out SEO, and find out how to get your website up on the first page of the search engines. This is going to take hard work and determination, but you can do it. Affiliate marketing is something that anyone can learn. Start out by reading a good eBook or blog by someone that is a pro for the best marketing tips and techniques that you can use. Learn from others that have done and accomplished what you are trying to do (Buttle, 1998).

Objectives

To make aware how easy it is to take up Affiliate marketing

To evaluate the various options of Affiliate marketing

To detail how practical Affiliate marketing can be a gateway to get started in home business

To study and evaluate rules and resources of Affiliate marketing

To analyze the things making the most from Affiliate marketing

To evaluate pitfalls to avoid when starting your Affiliate marketing business

Review on Research Literatures

The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers and Gifts launched on the Prodigy Network in 1989, PC Flowers and Gifts remained on the service until 1996. By 1993, PC Flowers and Gifts generated sales in excess of $6 million dollars per year on the Prodigy service. In 1998, PC Flowers and Gifts developed the business model of paying a commission on sales to The Prodigy network. In 1994, Mr. Tobin launched a beta version of PC Flowers & Gifts on the Internet in cooperation with IBM who owned half of Prodigy (PC Week, 1995). By 1995 PC Flowers and Gifts had launched a commercial version of the website and had 2,600 affiliate marketing partners on the World Wide Web. Mr. Tobin applied for a patent on tracking and affiliate marketing on January 22, 1996 and was issued U.S. Patent number 6,141,666 on Oct 31, 2000. Mr. Tobin also received Japanese Patent number 4021941 on Oct 5, 2007 and U.S. Patent number 7,505,913 on Mar 17, 2009 for affiliate marketing and tracking (Business, 2000). In July 1998 PC Flowers and Gifts merged with Fingerhut and Federated Department Stores. Affiliate marketing has grown quickly since its inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in 2006 was £2.16 billion in the United Kingdom alone. The estimates were £1.35 billion in sales in 2005. Marketing Sherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs.

Currently the most active sectors for affiliate marketing are the adult, gambling, retail industries and file-sharing services. The three sectors expected to experience the greatest growth are the mobile phone, finance, and travel sectors. Soon after these sectors came the entertainment (particularly gaming) and Internet-related services (particularly broadband) sectors. Also several of the affiliate solution providers expect to see increased interest from business-to-business marketers and advertisers in using affiliate marketing as part of their mix.

Definitions of Affiliate Marketing on the Web

A system of advertising in which site A agrees to feature buttons from site B, and site A gets a percentage of any sales generated for site B. It can also be applied to situations in which an advertiser may be looking for marketing information, rather than a cash sale. This is a system of revenue sharing between one site (the affiliate merchant) which features an ad or content designed to drive traffic to another site (the advertiser). The affiliate will receive a fee based on the amount of traffic generated. Affiliate marketing is the use by a Web site that sells products of other Web sites, called affiliates, to help market the products. Amazon.com, the book seller, created the first large-scale affiliate programme and hundreds of other companies have since followed (Candy, 2010).

Affiliate Marketing Options

Have you been interested to give your current job the shove for quite some time? Do you have the tune, take this job and shove it as your cell phone ring tone? Would you love to get into your own business but you’re afraid of the risk? Well the fears of risk are nothing to be laughed at. The vast majority of small businesses fail within the first year. There are a variety of reasons but the financial risk is incredibly high. To minimize the risk many look into the field of affiliate marketing. This takes about 90% percent of the risk factor away and allows you to set up a business for yourself.

As an affiliate, you do actually work for another company or merchant. You sell either products or services depending on your particular skills and talents. Affiliate program are great for those that are creative, self motivated and not afraid of hard work. When you become an affiliate, the corporation takes on the risk. You can sign on to sell products or you can sell services. You can work to increase website traffic to other sites and receive referral payments, or you can create your own sites ad make money through ad revenue. The choice is entirely yours. If you are just starting out, you may want to join and affiliate program that has been established. You won’t be competing with other internet giants and you’ll gain some necessary skills and experience. One well known affiliate partnership is the one that exists between Bizrate and shopzilla.

Both of these two sites exist as separate entities. However they have combines their resources to make an excellent affiliate program. Bizrate functions as a comparison shopping site. If someone wants a certain item they can search for it via Bizrate. The site will tell you where to purchase it and how much it charges. They will give you a complete item description as well. Bizrate also lets the consumers know who is offering particular items for the lowest price and who offers the best value for money. Bizrate gives consumers a chance to check out merchant reviews as well (Moon, 2000). If you are creative and have sales savvy then perhaps you should consider a career in affiliate marketing. This will allow you to work for yourself with very little risk to you. It is easy to get started and the costs are next to nothing. If you have a computer and internet then you’re all set. By taking advantage of the shopzilla-Bizrate partnership, you can maximize your earning potential. By placing your content on shopzilla and having it rated on bizrate, you can gain a high level of exposure and internet traffic. If you offer a quality product and conduct yourself as a god merchant, there is no reason why these two sites can’t make you a lot of money.

Affiliate Marketing and Home Business

Many of us dream of being our own bosses. The lure of big money and flexible work hours is quite attractive. However, many are afraid to venture out on their own. They fear that they do not have the capital required to get a business started or they don’t want to lose the security of their day job. The solution could be starting a home business. The truth of the matter is that you can start your home business with no money at all. Ask yourself this, do you have a spare room or space in your house. Do you have a computer with an internet connection? Do you have a phone line? If you have these three things you have the essentials of an office from which your home business can be made.

Affiliate marketing can be a great way for you to get started in your home business. Affiliate marketing will provide you with the opportunity to sell either a product or a service. With low capital and little space you may want to concentrate on services. Once you have made the decision, you need to evaluate your skills. What services can you offer and what skills can you bring. Many people start off with affiliate marketing programs from major search engines. If you’re good at website design, you could register your page with someone such as yahoo publisher. In this way your site will get traffic with the help of the search engine Yahoo. If yours is a sales website, your traffic could translate into increased sales. The more exposure to your site is the better.

The other thing you can try to do is attract traffic to other sites. Retail sites such as Amazon and E-Bay have affiliate marketing programs. If you can generate traffic and increase sales then you make money. Both programs offer ways to increase revenues through links and blogs. These are usually free and worth using. Remember, the more you make the more they make. Finally, your site can make money in another way. When it is posted on sites such as yahoo publisher or Google ad sense, there will be ads placed. Whenever a visitor clicks on an ad you make money. The more clicks the more cash. The operators take care of all the advertising costs and placement. They also try to place appropriate ads to your page. If you’re selling rare books ads for fish food are not likely going to get clicked (Prussakov, 2007).

Affiliate Marketing Rules

So you have been interested to get into affiliate marketing, and want to know the rules. You have your website and or blog all set up and ready to go. You have chosen your niche and market that you want to promote and make money off of. You just need links to start making money. Promoting other’s services and products is not something that is difficult to do. However, you will find that with all of the many companies that offer affiliate programs, and referral options, they all have their own rules that you must follow.

Affiliate marketing is pretty easy to follow, that is unless you have many different programs that you are a part of. When you start getting so many that you cannot remember the rules, or the guidelines that you have to follow, you might have a problem. This is because the rules for affiliate programs are as different as the companies. Each company is allowed to make their own rules. However, you might see many similarities. That does not mean that they are copying one another, or cloning their affiliate program so to speak, but yet it means that they have the same rules. Affiliate marketing rules can be so very different. They can range from not mentioning the brand names that they sell anywhere on your website, to not have that particular market in your website URL. Because they are so different for each program and company that you promote, you are going to have to be sure that you read each one well and make sure that you understand it fully. If you all ready have your URL for your website, you may not be able to participate in some of the affiliate programs. This is because you will not meet the requirements for the rules (Collins, 2000).

Keeping a spreadsheet of the affiliate marketing programs that you are a part of and their rules is a great idea. This way you are never confused and know just where you need to stand to be a part of that program. This is the best thing that you can do for your affiliate marketing business. Not only that, you will also find that some of the sites that have broken rules and have been caught have resulted in law suits. Cover your tracks and make sure that you are following the rules that are set by that company for the best results. You will also find that there is a thing that is called affiliate marketing software. If you can find a program that fits your needs and will help you keep everything straight, you may not have to worry about keeping track of them yourself. Use your software to keep track and make sure that you are doing your affiliate marketing the right way. Your efforts will pay off eventually, and you will be glad that you went by the book and followed the necessary affiliate marketing rules (Frank and Collins, 2009).

Affiliate Marketing Resources

Many of us would love to venture out on our own and work for ourselves. However, two major factors tend to get in the way. The fist being money and the second being risk. These two factors should not be taken lightly. Even small businesses need a substantial amount of capital to get them started. The risk factor is even scarier. Up to 90% of all small businesses fail within the first year. Affiliate marketing takes the risk away. It can also be started with next to money. Affiliate marketing can be quite a lucrative venture. If you have a natural knack for sales or marketing and are self motivated and prepared to work hard then an affiliate marketing scheme could be a wise move for you. Almost daily, you see advertised, courses and seminars that claim to hold the secret of instant wealth. By attending this course you will have all of the tools you need to get your business off the ground and become a millionaire. Those who want to start their own affiliate marketing business often attend these thinking that they will help their business thrive.

Courses and seminars more often than not, disappoint. First, these courses and seminars are usually quite expensive. You have the course or seminar fee. Plus any travel and hotel costs. Most of these are held in heavy tourist destinations around the country. Second, the person giving the seminar or course is usually on some kind of a promotional tour. While they do give out information at the course or seminar, their true goal is to sell you their latest book or software. The truth be told, everything you learned from that seminar was probably written in their book. You could have saved thousands if you had just bought their book and read it rather than shelling out for this course.

Magazines and newsletters are fantastic resources for affiliate marketing. Newsletters are generally free and contain good, valuable information about particular programs. You’ll hear account from people who are working in affiliate marketing. Their advice is worth having being that they are doing now what you want to be doing in the near future. Finally, one of the advantages of joining an affiliate marketing program is the support that you receive (Olim et al, 1999). Any legitimate company should want you to succeed. The more profit you make, they better for them. They should have their own advice and support network that is available to you. This could be in the form of an agent whom you can contact or advertising materials. They may offer a wide variety of things to help you build your business. They can be one of the most important resources for you to rely on. If you are considering a career in affiliate marketing, then you should find out what you are getting yourself into. Don’t waste money on expensive seminars and courses. Look for books, newsletters, online information and the companies themselves. Some of the best information is available to you for free.

Getting the Most from Affiliate Marketing

Affiliate marketing is nothing new on the internet. However, it sure is something that many come and go after. When you are looking to start your own website or blog and add some affiliate marketing links to it, there are some things that you should know. Affiliate marketing is not for everyone. It is not for anyone that is looking to make money fast, nor is it for the impatient (Murphy, 1997). You have to have two things in order to be successful with affiliate marketing, and those two things are patience, and determination. When you put those two together, there is no stopping you or what you can do with your affiliate marketing business.

Affiliate marketing can be done a few ways; it can be done through email, newsletters, websites, or blogs. By using any of these things, you can be successful if you are marketing to the right audience. Finding your readership and catching them with good content is what it is all about. To do so, you need to know where they go and what they look for. Try starting with message boards to begin with. However, use some patience and don’t come off as the newbie know it all. Take some time and peak others interest. Add the link to your website or blog in your signature line at the message board that you are visiting, and most importantly, make sure that the message board is relevant to your market. If you have a website that pertains to a market that has to do with gardening, you will not want to be visiting a message board that is all about pregnancy. It is really quite simple to understand how these two things must be relevant to get results (Gray, 1999).

The next thing that you should know about getting the most from affiliate marketing is that you should be writing articles. Writing articles on the market that you are promoting and then submitting them to article directories or ezines is a great way to get the most from your affiliate links and programs that you are a part of. Be sure that you include a link in the articles that you are submitting that will lead the readers back to your website. Doing so will get your site more traffic, and will pay off in the end. However, you will not want to submit the same articles that you have on your site to these directories. You will want different variations of the articles to be used in the directories. This is because when you submit these articles to the directories, you are going to see that by checking your back links, there are other webmasters using your articles which is also great because they will in return give you a back link to your site. However, they are depending on you to have a different article on your site than the one that you are submitting.

Affiliate marketing is something that takes work. You cannot just set up your site and let it go. You have to work on it consistently to see a good amount of revenue come from it. However, make sure that you are doing everything that you can to get it seen. Use the best free tools that there are available to you, and pay for the ones that really work. You will find that you can get the most from the resources that are out there and available (Gerstner and James, 1995).

Pitfalls to Avoid When Starting Your Affiliate Marketing Business

Well, you have left that awful job and now are working for yourself. You have jumped on board your new venture which is affiliate marketing. You’re incredibly excited and are working all the hours God sends to make this venture a success. You checking up and monitoring your site and you see that sales are going quite well. Many of the strategies and things that you put in place have helped your affiliate company sell quite a bit. The end of the month finally arrives and you’re waiting for that first large payment. When you check your account you are slightly disappointed. You did make some money but according to your calculations you should have had more. You check your sales figures again and decide to contact the company. They inform you that some of the items sold were returned so those had to be deducted from your commission.

This is disappointing but it does happen. Companies do not pay out commission on returned goods. You need to be aware of this to avoid fall into further pitfalls. No one would expect to be paid a commission on a returned item however; some less than honest affiliate marketing companies can use this to scam some of your profits (Hoffman, 2000). You need to make sure you understand their return policy and how it will affect the amount that you are paid. A return occurs of course when a customer brings an item back. Charge backs can also happen when they dispute an amount on a credit card. Be sure you keep a close watch on which items are being chargeback or returned. See if there are any patterns that are obvious. If you notice that the orders that are charged back are always very high ticket orders then they could be giving you false information. They are doing this to keep you commission down and keep some for themselves. Keep a close eye on returns especially if you think it is happening a little too often.

You also need to be aware of which items are actually commissionable. Make sure you understand which products you will be earning money from to avoid disappointment later. Sometimes the company will offer a selection of products to put on your site, however only certain items may be commissionable. Before agreeing to anything like this checks your terms and conditions carefully. Finally, you also need to make sure that items that are sold don’t have any other conditions attached. Some will only pay a commission if the customer fills in the payment details immediately. If they select an item and continue to shop, you may not receive any commission on that item. You can also loose commission if the customer clicks on any other links before completing the order. If they order 30 of an item you promoting but click on something else then you have lost out on quite a large amount of commission.

Conclusion

All of us would love to make a little more money. Sometimes just a little to supplement an income can be a huge help. Today it is easier that you think to get a little extra cash in your bank accounts. Most of us today have our own personal websites. We can get them for free and use them as a method to keep others informed of what we are doing. You can actually turn your website into a way of making some extra cash for you. By placing some ads on your site, you have the potential to earn some cash. You’re not likely going to get rich with just your own personal website. However, it is a way to get started. There may come a time when you create another site and you can start turning this into money making venture as well. You could sign up for an affiliate program and make money through their ads. To do this well you need to think of an appropriate affiliate program that readers of your site would appreciate.

If you’re looking to make a little more money then it is easy. Why not take the first step and turn you personal website into a way to make cash. Fill up those blank spaces with advertisements and let the money roll in. you can always expand and create different websites. They more ads you can get the better. Affiliate programs are great ways to help you earn money. You can start off small with your own site and then expand into other areas. Eventually, you could build your own affiliate business. Look into affiliate marketing. It could be quite lucrative.