Making Money Selling Other People’s Products
A lot of people are now getting into online businesses and
online marketing either to supplement their “real world” income or for it to
become their primary source of income.
Why? Because online marketing just
provides them a lot of benefits!
First, you can reach just about anybody in the world who has
Internet access if you market your products online. That means a wider market for you, which can
translate to larger profits. Second,
setting up an online business requires only a fraction of the cost required to
set up an actual business establishment, which means a lot of savings for the
business owner.
Another aspect that has attracted a lot of people towards
online marketing is the fact that one doesn’t have to have his own products to
get started. In online marketing, one
can start making a lot of money just by selling, or even by just trying to
sell, other people’s products. And
getting started with this kind of marketing strategy is actually quite easy. All that one needs to do is to set up an
agreement with an online retailer or merchant, and after everything is settled,
one can immediately start making money by selling the merchant’s or the
retailer’s products.
Incidentally, the most popular and the fastest growing
method of selling other people’s products online is affiliate marketing. Affiliate marketing, in its simplest
definition, is a relationship between an online merchant or retailer, who has
products to sell, and his affiliates, who are willing to promote the merchant’s
product on their website.
In a typical affiliate marketing set up, the merchant
provides his affiliates with banners and text ads that links to his site. The affiliates will then get these ads posted
on their website and they get paid whenever traffic or sales is directed to the
merchant’s website. Affiliates are often
paid on commission basis, although other online merchants would opt to pay a
fixed fee for the affiliate’s compensation.
Starting to make money online with affiliate marketing is
relatively quick and easy. All that one
has to do is to sign up as an affiliate for an online company that offers
affiliate programs. An alternative
method, and usually an easier one, is to sign up as a member of an affiliate
network—a network that hosts a variety of affiliate programs for different
online merchants or retailers. Signing
up is usually free, although other companies and networks may require you to
pay a particular fee. Such fees,
however, are made as payment for additional services that the company may
render, like providing you with tools and assistance to jumpstart your online
business.
When you sign up with an affiliate marketing program, you
are usually required to fill out a form containing information about
yourself. Some affiliate programs may
also require you to present the URL of your website and describe its
contents. This will allow the retailers
to verify that you actually have a website with contents that are relevant to
their products. Some affiliate programs,
however, won’t require you to have a website.
After filling out the form and all, you are then allowed to choose the
affiliate programs you want to promote.
After signing up with an affiliate program and being an
actual affiliate, you are now ready to start making a lot of money by selling
other people’s product online. How do
you make money? There are actually a
number of ways for you to earn money as an affiliate, and most of these ways
depends on the type of affiliate marketing program you’ve gotten into.
Many affiliate marketing programs compensate their
affiliates in either of three ways: pay-per-click (PPC), pay-per-sale (PPS), or
pay-per-lead (PPL). In pay-per-click
affiliate marketing, the affiliate is paid whenever he directs traffic to the
merchant’s site. PPS and PPL affiliate
marketing programs work rather differently.
In PPS, the affiliate only gets paid when his referral converts into an
actual sale. In typical PPS affiliate
programs, the affiliate would usually get 15% to 20% commission for each
conversion. PPL affiliate programs work
the same way, although affiliates are paid a fixed fee whenever his referral
converts into a lead for the company.
Some affiliate marketing programs are two-tier programs,
wherein the affiliate is also allowed to recommend other affiliates to the
merchant. In such affiliate programs,
the affiliate would not only be paid for the traffic or sales that he would
direct to the merchant’s site but also for the traffic or sales directed by the
affiliates who signed up with the program through his recommendation.
Yet another way of earning more profits with affiliate
marketing is through residual affiliate programs. Residual affiliate programs are affiliate
programs where the affiliate gets paid a number of times for as long as the
merchant keeps the customer the affiliate has referred to his site. One form of residual program gets the
affiliate paid a commission every time the referred customer purchases
something on the merchant’s site. Another
form of residual affiliate program gets the affiliate paid a percentage every
month for as long as the company keeps the referred customer.
With a lot of options available and a lot of ways to earn
money, affiliate marketing is undoubtedly the most popular and the easiest way
to make money by selling other people’s products online. As to how much money one can get from
affiliate marketing actually depends on the affiliate. A dedicated and hardworking affiliate would
certainly get more from the program compared to those affiliates who would
simply sign up and forget about the program later.
Making Money Selling Other People’s Products
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