Knowing Affiliate Marketing For Passive Income Generation

[Johnathan Cunnings]

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Article Title: Knowing Affiliate Marketing For Passive Income Generation
Author: Johnathan Cunnings
Word Count: 511
Article URL: http://www.isnare.com/?aid=1870051&ca=Marketing
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Affiliate Marketing nowadays is steadily gaining popularity because it is an alternative means of generating money passively with relatively little effort. With just a basic knowledge of the computer and the internet, and some connections or a good website to promote products, one can generate money without actually doing a great deal of work. However, one does not venture impulsively to this lucrative opportunity without knowing the basics of it. This article is dedicated to knowing what Affiliate Marketing is and how one can make money out of it.

Affiliate Marketing simply put, is promoting the products of other companies. In this scheme, there are three main players who form a cycle or triangle of mutual connection and benefits. These players namely are the advertiser or the company, who sells the products; the publisher, or the individual who promotes the products of the company; and the consumer, who actually sees the products and makes an action like buying it.

For example, if a company wants to advertise a product, they may require the help of affiliate marketers or the publishers. These affiliate marketers will then promote the product of the company through their websites, blogs, or in their video reviews. This promotion strategy is designed to generate traffic to the company's website by redirecting the consumer if they click the link in the promotion. This, optimistically, will help the company sell the promoted products.

So, in this idea, how does an affiliate marketer generates income? One word best explains it- commission. The amount of money an affiliate marketer generates is solely dependent on the number of people that actually clicked the link or the banner of the product being promoted, and then in turn, bought the product. This link or banner embedded in the publisher's website, is specially coded so the company can track how many people are redirected by the promotion that the publisher generated through his website. The link contains a publisher website ID, an advertisement ID, and a shopper ID. The shopper ID is used to recognize the publisher's website, wherein the product is being sold. The advertisement or ad ID is the number which represents the link in the promoter's website. This ID is used to track the performance of the website and credit the publisher when a sale is made. Lastly, the shopper ID is the tracking number of the target audience and buyer. When the company received payment through the sales of the product promoted, the publisher will then receive a percentage of its sales. The payment that the publisher will receive depends on how much the consumer paid. So, this means, the higher the amount of money the consumer is willing to spend on the products, the higher the percentage potential the publisher obtains.

In this generation of computers and internet, the amount of online sales is constantly rising. And, with the essential information listed above, one can be sure to make the most out of this technology generation and generate passive income through affiliate marketing.
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