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Advertisers and Affiliate Programs

by W George Elliott

posted in Internet and Businesses Online

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One of the easiest ways to earn money from home with a website or blog is with advertisers. Affiliate marketing allows you access to a large pool of potential advertisements that can generate a stream of income. An affiliate program is a performance-based online advertising program where an advertiser pays commissions to website owners who promote products on their websites.
There are essentially four partners in the equation that make up affiliate marketing. They include the company with the products for sale, the source of the advertising, the website owner who becomes the affiliate and the website visitor who becomes the customer. A simpler way to look at it would be the banner ad you see under this paragraph.
The client selling the product advertised is the first part of the partnership. They would be using an affiliate advertising network as part of their marketing strategy. That network is the second partner and would be the place I registered to access online advertising for this website.
As I am providing access to the advertiser's products on my website I am known as the affiliate which makes me the third partner. If you click on the ad and purchase the product you complete the partnership as the customer. If you buy the product I am rewarded with a commission by the advertiser for bringing them business from a customer visiting my website.
Different Kinds of Affiliate Programs
There are different kinds of online advertising programs but I'll stick to the ones you would likely encounter with a blog or website. In these instances you would see three main formats. They are commonly called pay-per-click, pay-per-lead and pay-per-sale programs. With pay-per-click affiliate marketing, the commission is very low. Pay-per-lead programs provide higher commissions with pay-per-sale at the top of the scale.
How Much Does Affiliate Marketing Pay?
There are a number of factors that come into play with the earning potential of online advertisements. A lot will have to do with the kind of program you choose and what affiliate source you have registered with. Each of these online advertising networks will provide a complete breakdown on what commissions are being offered by their member advertisers.
While it is tempting to just feature banner ads and text links to the highest paying commission sources on a website or blog, there is a bit of science required to make the correct fit for all four parts of the affiliate equation. In my business, newspaper marketing, we refer to it as target marketing. This is a form of advertising that matches advertisements with potential customers based on subject matter.
Target Marketing Provides the Best Return
The target marketing I used with this website was easy. I designed it to feature a handful of internet subjects that I could explain in simple terms to help teach others without being too technical. I also purposely applied to affiliate programs that would be a good fit for each page of this website.
For example, the page featuring web hosting details has affiliate marketing for web hosting companies. The page outlining how to start a blog has online advertising from companies that host blogs. This is what target marketing is about. If you have an interest in learning more about how to pick a domain name you would be attracted to that page.
A person interested in the subject matter would more likely click on the banner ad because it matches their interest on that page than someone who was not looking for that information. The same goes for having banner ads for a pharmacy on a page about search engine optimization. It would not be a good match and would produce poor results in the long run.
Affiliate advertising also produces well when the ads are on websites with extremely high amounts of visitor traffic. The more people exposed to the banner ads and text links means a higher percentage of those website visitors becoming customers. This in turn translates into more commissions earned by you from your online advertisers.
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