Affiliate Marketing What Is It And Why Use It?

Affiliate Marketing is having Affiliates do your Marketing for
you. What I mean by Affiliate is someone who tells people
about your product/service and you pay them for a desired
response, such as a purchase.

Affiliate Marketing is one of the best ways to get the word out
about your product/service.

The best way to pay Affiliates is pay per sale. This means that
you only have to pay your Affiliates when they actually make a
sale. This reduces your advertising costs dramatically. your
Affiliates take on all the risks so you don`t have to worry
about wasting your money on advertising which may not produce
any results.

Using Affiliate is a very cheap way to advertise, however it is
very effective. The software required to start up your own
Affiliate program can cost only about $50 per month.

Then after that just wait for people to start promoting your
product/service for you.

Please remember that 5% of your Affiliates will do 95% of the
selling. What I mean by this is that most of your Affiliates
will just sit there and do nothing. This can be countered if
you teach them what to do, exactly how to do it and providing
everything for them so they have to do as little work as
possible.

To find out about teaching your Affiliates please see the "How
To Super Charge Your Affiliates" article

You don`t have to use this form of advertising just to sell
your product or service. You can also use it to grow your opt-
in mailing list. This is discussed in another article.

How Much Should You Pay Your Affiliates

How much you pay your Affiliates really depends on how much
your product/service costs, its profit margin, how much you`re
willing to give up and what action you want to take place.

Lets say that your product is priced at $100. Lets also assume
that it cost you $10 to make it. This leaves you with $90
profit.

How much of this do you want to give away to the person that
made this sale possible?

Personally, I believe that you should give a rather high
percentage of the profits back to the affiliate (Depending on
how many sales they regularly generate), because without them,
you wouldn`t have made that particular sale at all, so reward
them for it.

A fairly decent reward is about 50% of the revenue generated.
Your product is priced at $100 so a $50 commission is quite
generous. It really depends on your other costs (such as a
mortgage) you have, which would help decide on a fair
commission to both you and the Affiliate.

Another factor which plays a part is how much additional
advertising you do, such as pay per click. For example, if you
rely solely on your Affiliates to Market for you, then you may
want to reduce the commission you pay to them to help you
survive. However, you may want to pay them more, to encourage
them to send more sales you way. It really is a judgment call.

On the other hand, if you advertise in other ways effectively,
then you can afford to pay higher commissions, because you`re
not putting all your eggs in one basket.

In the end it`s all down to how greedy or generous you are. The
best advice I can give you is to pay the affiliate what you
think he/she deserves. Hopefully that way everyone is happy
and earning their fair share.

That is the key to a successful affiliate program.

Paul White is a 42 year old former teacher. He now helps people
all around the world to become wealthy online. Whatever you
are selling, visit the popular site: http://www.profitmountain.
com (http://www.profitmountain.com) and if you subscribe to
Profit Mountain`s FREE wealth building newsletter, you will
also receive FREE advertising for the next 12 months! (Worth
$200!) as well as loads of other things!