Here we are at part five of our Online Advertising series. We have talked about Pay per Click Advertising, Banner Ads and Email Marketing. Today we are going to take a look at how Affiliate marketing works and how it can help you with your online advertising efforts.

Affiliate marketing falls under the category of businesses helping businesses. The affiliate relationship works to benefit both parties involved.

Affiliate marketing is an online advertising channel in which advertisers (you) pay publishers (other businesses) for results of a potential new clients visit, such as making a purchase or filling out a form. Basically this is the modern version of the “finders’-fee” model, where individuals who introduce new clients to a business are compensated.

The difference in the case of affiliate marketing is that advertisers only pay their publishers when the new client introduction results in a sale or a lead, making it a low-risk, high-reward environment for both parties.

The three ways that cost is calculated for affiliate marketing are:

• Pay per click
• Pay per lead
• Pay per sale

By placing affiliate marketing advertising on websites all over the Internet, your advertising is exposing your business to potential clients in a variety of locations. The more websites you are affiliated with, the more exposure your product or services get, and all you have to do is allow ads for your product or services to appear on someone else’s website.

Before agreeing to run your advertising on their site, reputable affiliates will take the time to research your business. This is good for both parties involved. You know that the affiliate is selective about who they associate with, and they make sure you are a stable and reputable business. Generally the relationship between the affiliate and advertiser is a profitable experience for both.

The best way for you to decide where to place your advertising, is to seek out businesses that complement your services. Have your advertisement on a website that is of the same species as yours, so to speak.

The easiest way to get your product in the mainstream of sites is by joining Clickbank. Clickbank has more than 100,000 affiliate marketers waiting to promote your site.

Here’s how it works:

• You create the digital product. (What you are offering)
• Join Clickbank
• Choose the affiliate commission you are willing to pay
• Once Clickbank accepts your offer, you pay a onetime activation fee of $49.95
• Clickbank has detailed sales reports and pays out the appropriate amounts to you and your affiliates

Next up in our series is: Interactive Advertising

photo credit: zoonabar