The Internet has become a virtual world. There is nothing that you can do in the real world that
you cannot do in the virtual world including buying and selling products. This has been a known fact for some time, and when you promote products on the net it is called Internet marketing.
There are a number of websites that sell products and a few large organizations that dominate the market. Companies like Amazon and eBay are some of the most commonly known names although there are a few others as well.
While Amazon and eBay sell products, they do not actively advertise for them. Considering their sales volume and growth – Amazon grew 16% last year when compared to 2.4% for retail sales, it is possible that they feel that they do not need to advertise. Yet everyone knows the value of advertising.
This gave birth to what is called the affiliate websites. When you are selling a product, and
someone comes to you and tells you that they are willing to promote your product, they are
vendors. When they do this online, they are called affiliates.
Affiliate marketing works because it is a win-win situation for both parties. The affiliate takes it upon themselves to promote his website. He toils hard and puts in a lot of effort to increase his ranking on Google. The result is that any product that he is promoting for you will also get the increased exposure, and you have not spent one dime, or one minute of your time to do this.
The affiliate is paid a commission that can range anywhere from 4% to 30% on profits
depending on the product that they are marketing. He is paid only if any person who he directs to your site makes a purchase. You may miss your profitability per product here, but your overall profits will increase because of the increase in sales volume.