Dec 302009

Affiliate marketing on the Internet is simply the latest application of a normal business practice of earning a commission for a referral.
Lawyer, real estate agents and other professionals have referred customers to colleagues, and received a commission on any business generated, for years. Affiliate marketing is simply the same principle applied on a much larger scale.
In order to survive, all businesses must attract new customers, however the process of acquiring new customers can be both difficult and expensive.

Who Can Do Affiliate Marketing?
Most people that have even a little knowledge of computers and the internet can do affiliate marketing. It’s becoming a very popular way for baby boomers to supplement their retirement income.
On the Internet, there are affiliate programs for just about any product or service you can imagine.
The process is straightforward. Just send a potential customer to the sellers web page and if they buy, you get a commission.
If you have a popular, high traffic web site, affiliate marketing can be very lucrative. It’s all a matter of conversion.

What is Conversion?
Conversion is stated as a percentage and is the number of people that complete a purchase compared to the number of people sent to the sales page. It can also be expressed as the number of people that click on your affiliate link as compared to the number that visit your web site.
You can get a rough idea of your possible sales by employing a conversion rate of 1%. You could achieve conversion rates as high as 10% or more but estimating the rate at 1% is a good starting point.
Let’s assume you have a web site that gets 10,000 visitors per week. If 1% click on your affiliate link, that means you will send 100 visitors on to your seller’s landing page. If they have a 1% conversion rate as well, then one of the prospects you send will purchase the product and you will make a commission on the sale. If you are selling, for example, a $ 50 ebook with a $ 30 commission, you can expect to make $ 120 a month from this page.

How Do I Make Real Money?
It all hinges on the numbers. Guide more people to your web site, increase your conversion and you will earn more money. Get started by carefully choosing the product you wish to sell. A lot of people start their affiliate marketing business by promoting Clickbank products. is a company that acts as the go-between for people selling digital products – software, ebooks, videos, etc. – anything that can be downloaded directly to the purchaser’s computer. All sales go through them and you can rely on them to pay your commission. Their list of available products will indicate the conversion rate of the landing page you will be sending your leads to.
Now it is up to your to presell the potential customer so you can get the highest possible conversion rate for both your affiliate link and the seller’s landing page.
Let’s try that exampe again using a 10% conversion rate. With a 10% conversion rate 10,000 visitors to your web page will result in 1,000 click-throughs. If the landing page also has a 10% conversion rate, you will make 100 sales for the week or 100 x $ 30 = $ 3,000 or $ 12,000 for the month.
Now, let’s picture having several web sites that are all getting about the same amount of traffic. That’s affiliate marketing.

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