Saturday, May 12, 2007

Affiliate Business or Affiliate Marketing?

For some beginners in internet marketing, it appears a little problem about two terms, affiliate business and affiliate marketing. In my opinion, notwithstanding both of them are the same, I prefer affiliate business than affiliate marketing. Affiliate business has larger sense then affiliate marketing.

Affiliate business is the best option among other internet marketing models for newbie. Even Ewen Chia ever told that affiliate marketing is still the number one way for aspiring internet entrepreneurs to get started. Because there is no inventory expense, no hassles with payment processors, and no extra time spent on processing refunds or returns. In other words, it could bring in a massive amount of cash to your bottom line with very little effort.

There are some profitable Affiliate Business models; Pay per Sale (PPS) and Pay per Lead (PPL). The imperative thing to understand about affiliate business is that it is a “pay per action” model. The meaning of “action”, however, is defined in a couple of different manner. An action can be the sale of a product or the generation of a new lead.

In other words, affiliates get on compensated based on referring either customers or potential customers. The action that visitors take is either to buy something or to fill out a form providing their contact information.

Which type of affiliate business is easiest? The reality is they are about equal, but pay per lead has more significant entity over pay per sale. It is much easier to bring prospects to fill out information—especially if the merchant is offering them some sort of bonus in exchange for the information—then offer them to buy something.

PPS is what most people think of when they think of affiliate business. The affiliate is tasked with sending traffic to the merchant in order to help him/her acquire new customer. Whenever one of the visitors you refer buys a product from that merchant, you are credited with the sale and you receive a commission.

Meanwhile, under PPL model you generate commissions by generating leads. Rather than referring people directly to a product, you refer them to fill out information.

How about Pay per Click (PPC)? Do you also consider this as an affiliate model? I say, yes. And this is why I prefer term affiliate business then affiliate marketing. Because affiliate doesn’t mean as referring people to purchasing only, but also bring people to visit other website. Google AdSense, for example, through presenting Google AdSense in your website and you earn money whenever your visitors click on them.

Whatever you are thinking now, it is exact time to start building your own online business.

An internet marketer and newbie developing specialist.

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