Affiliate Marketing is an online business model in which a business pays a commission to an affiliate for each new customer that is delivered to the business.  Though the concept of paying a fee for referred business existed long before online affiliate marketing, it didn’t really reach its present day scale until it was adopted by online merchant CDNow in 1994. Online affiliate marketing also differs from its pre-internet version in that is available to the masses on a scale previously unimaginable by traditional brick-and-mortar merchants. Any regular Joe or Jane with an internet connection, in theory, has the capability to sign up for an affiliate program, slap up a quick website and start making money.

Here’s how the process works: Someone signs up to be an affiliate by providing identifying information.  Once approved, the affiliate decides which products he or she would like promote and is then issued a corresponding ‘hoplink’ for the product(s).  The hoplink not only links shoppers to the merchant’s website, but also contains a tracking code identifying the affiliate who referred the shopper to the merchant’s website.  The merchant’s host server deposits a ‘cookie’ on the shopper’s customer’s computer that will allow the affiliate to get paid for up to a certain length of time even if the shopper leaves without purchasing and then returns at a later time as a customer to make the purchase. All of this tracking is absolutely essential to ensure that an affiliate’s efforts don’t go unrewarded.

Affiliate programs that require the least amount of conceptual understanding and the greatest payout tend to be the most popular. It’s not uncommon for programs like Dish Network and Match.com to pay commissions up to $100 per sale. This would be great were it not for that minor detail called competition.  As expected, the masses tend to follow the path of greatest reward and least resistance.  This is why finding a nich program can often be much more profitable–e.g., making $200 profit is better than losing $200 on pay-per-click ads trying to sell a product that is being intensely marketed by 50,000 other affiliates.

But whetever product you choose, try to find something in which you have at least somewhat of an interest, something that you understand.  Not being excited about something or not understanding something will tend to undermine your efforts on all levels, from designing your website, to writing pre-sales copy to how much time you put into the endeavor as a whole.  Whereas promoting something that you have an interest in will tend to keep you going in the face of obstacles.

Affiliate marketing can be quite lucrative.  It’s not uncommon for some affiliates to make 6-figure incomes, all while working from home.  Even more common are affiliates making $1,500 to $3000 a month.  Sadly, the most common type of affiliate is the one who makes alomost nothing or even loses money.  While this is not an indictment of affiliate marketing, it should serve as a note of caution to anyone thinking about trying affiliate marketing to make easy money.  Not knowing the nuances of any field of endeavor is the quickest way to fail before ever getting started.  As the saying goes, if you want to be the lest, then learn from the best, copy the best.  There are plenty of successful affiliates who offer their knowledge for free. Take advantge of these resoruces and learn as much as possible brfore diving in. It could mean the difference between working at home and getting a job.