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A lot of Internet marketers use affiliate marketing as their business model. Most of them sign up to these programs without actually understanding what it’s all about. All they know is that they will get paid if somebody buys the product that they are marketing as affiliates.
The reason why affiliate marketing is so attractive to the Internet marketer is that he will not have to have a product or service to sell. This makes it easy. In the offline world many people sell products produced by others, for instance, we sell sodas at our restaurant and all of them are not been manufactured by us, the brand it is very known, if you said "Coca-Cola", then you are clairvoyant, cause it is very true. This is the same principle but online.
It does mean that the affiliate is able to get going right away. There is no big time required to make a product or to design a service that is marketable online. Of course it may be understood that selling your own product could be more profitable, since you keep all the profit.
For the Internet marketer that developed a business with his own products, using affiliate marketing to promote their product is a very viable business solution. Many Internet marketers offer affiliate options right from their site. The bigger online merchants are able to handle their own affiliate programs.
To assist the smaller merchants an entire secondary tier of service providers has mushroomed up. There are now Affiliate Management Agencies, Super-Affiliates and Specialized Third Parties vendors all playing around in this space.
Internet marketers who have produced an eBook which they feel is worth selling will be more inclined to submit their product to an online service such as Clickbank rather than trying to set up their own backend solution.
It is really only worthwhile for the big merchants to go it alone when it comes to handling all the elements of the affiliate business model. For the internet marketer with one product for sale, having to get involved in handling a network of affiliates could require too much technical knowledge.
Many affiliate marketers work on a multi-tier program. This is also called MLM which stands for multi level marketing. That means that affiliates get rewarded for signing on other affiliates. In a way this is similar to the offline world of Amway for instance.
The danger here is that if an MLM business offers higher rewards for new members rather than for the product sales, then it could be considered a pyramid or Ponzi scheme.
It requires a huge amount of work to keep this kind of business model running smoothly. It is quite difficult to keep the downline growing and to keep the participants motivated and selling. This does not imply that these schemes does not work, there are many successful MLM marketers such as Mike T Glaspie.
There are some two tier affiliate programs available as well, but in most cases the affiliate business model seems to prefer a one tier approach, maybe because it represents more profit for you, since you don´t have to do any more splitting of your profits. That is you have a one on one relationship with the affiliate merchant.
Therefore, choosing which system you might want to use as an affiliate marketer hoping to sell your own products will depend on the type of product and the resources and skills available to you. For most entry level Internet marketers the straight forward one tier affiliate program will in all probability be the best option and the less complicate, you make a sale, you rip your commission, can not be easier than this.
How huge are you as a Marketer? Did you qualified to have your own affiliate system to market your products?
To Your Success,
Luis TorresIf you like the Free Info in this Post, please consider to buy me a coffee