If you have heard about affiliate marketing being a great way to make money online then you are probably wondering, how does affiliate marketing work?

Affiliate marketing is a very popular way of promoting internet based businesses in which a website owner, called an affiliate, is rewarded for advertising the said business on their site. The affiliate is given a certain amount of money for every visitor, subscriber and customer that is provided through the advertising that the affiliate does on behalf of the business.

Payment is made by the business to the affiliate under three basic schemes.

Firstly there is compensation paid based on a certain monetary value for each visit. When a visitor clicks on an advertiser’s banner and is redirected to that businesses online sales pitch then the affiliate is being paid under a scheme called pay-per-click.

There is also commission that can be paid if the visitor signs up for the business, program etc. And that is called pay-per-lead.

Or the affiliate can get a commission based on any sales that are actually made, this is normally considered the largest commission and it is called pay-per-sale.

When considering how does affiliate marketing work, you should understand the relationship between the merchant and the affiliate. This system works well for the merchant because they don’t have to pay any money to the affiliate until results are being achieved.

It also works really well for the affiliate, because once they have set up the links and banners, then they don’t have to do any more hands on work for that merchant, the visitors will do the work and the affiliate will see the money.

If you are considering how does affiliate marketing work and you are considering going into the field as a merchant or an affiliate then you need to ensure that you do lots of research.

There are thousands of companies online who want to pay a performance-based commission to anyone who will encourage and drive more sales to their website by advertising and pushing their products or services.

You can do this sort of work by joining a good affiliate program which is run by the companies. With an affiliate program you can pick and choose which products you will advertise and get banners and key words to start your work with.

Affiliate marketing is a great way to make money online but it takes time and effort to succeed. There is a steep learning curve and you will have failures before you start really making great revenue – stick with it, the rewards really are worth it.

As we have discussed, there are a lot of different ways of being an affiliate and it works because it is a low risk industry. You don’t have to shell out much money to get started and there are thousands of markets and products to choose from for you to promote.

You should start by joining a good affiliate network to get yourself started. Now you know the basics of how affiliate marketing works you should get out there and start doing research into which product is right for you, and what sort of affiliate you want to be!