Understanding The Affiliate Marketing Business Model

By Jon Allo

It’s not uncommon to hear how online entrepreneurs are generating a sizable income via the internet using the affiliate marketing business model. So what is affiliate marketing?

Basically, when you’re an affiliate, you market and sell other people’s services and products online. When you make a sale, the product owner will pay you a commission. Think of it as being like a commission paid salesperson who makes use of the internet to find customers.

The Affiliate Revenue Model.

The affiliate marketing business model is structured around you sending prospective customers to a products owner’s website via an affiliate link that is exclusive to you. When the prospective customer goes to the website via your affiliate link, you can make your commissions in 3 ways.

Pay Per Sale: This is when the website visitor actually buys something from the website and you earn a percentage of the value of that sale. This is the most common way to generate income with the affiliate marketing business model.

Pay Per Visit: This is when you earn a commission based on the number of people you send to a product owners website, irrespective of whether those people actually purchase anything or not.

Pay Per Lead: You get paid by the product owner when a visitor that you have sent to their website submits their email address in an opt-in form on the website.

What Is Affiliate Marketing On ClickBank?

ClickBank is like a digital warehouse where you can find and choose products to sell. It is straightforward to use, free to join, and there are hundreds and hundreds of products in many diverse markets. When you are looking at products and services on ClickBank, you will see some references that are important to your affiliate marketing business.

Sale Price: (Initial $/Sale): This figure shows the amount you will earn as an affiliate when you refer a customer to a product or service.

Percentage of Sale: (Avg %/Sale) This figure shows the average percentage commission that is earned per affiliate per sale.

Gravity of Product: (Grav): This shows how popular the product is. The gravity rating should be at least 10. When the rating is over 100, it shows that a lot of other affiliates are also selling the product.

The affiliate marketing business model can be hugely profitable when you follow a proven process and you promote correctly. Remember that it is a real business and it will take time, effort and resources to get it off the ground. It isn’t a hard business to learn, but you’ll still need to take the time to learn it.

Success in business is mostly about marketing, especially online. Great marketing can sell an average product but poor marketing cannot sell a great product. Discover all you need to know about affiliate marketing and starting an online business here.

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