Affiliate marketing is simply placing advertising on the internet, and receiving a commission for sales resulting from those ads. Sales are tracked via special links that identify the affiliate. When a consumer clicks on an advertisement and visits a website the site then tracks the consumers visit back to the affiliate and credits them with any sales. Depending on the program, the website will pay a commission to affiliate even if the consumer purchases the product a few weeks, or even a few months, from their initial visit.

How to get started?

There are three things that need to be thought of prior to starting a home based affiliate marketing business. First would be to find products to promote. There are several companies that organize websites that offer affiliate programs. The three most notable are Commission Junction, Linkshare and Clickbank. These companies provide website information, campaign stats, and distribute payments.

The second step is to decide where to advertise. The key is to highly target your advertising to find consumers who are looking to buy a particular product or service, and then getting them to buy it through your link. Google AdWords is a very popular place for affiliates to advertise and is quite easy to setup. AdWords can also be very effective and deliver a great return on your investment if used to it’s fullest potential. Many books have been written on the subject, and since Google AdWords can get expensive if not used properly, I would recommend anyone interested in starting an affiliate marketing business purchase one. Of the books available, I would say “Google Cash" is one of the top authorities in this area.

The third, and most important step, is research. What are consumers purchasing online? Where is it effective to place advertising for these products? Will the website convert visitors into buyers? Is the commission enough to cover, and ultimately, profit over the cost of advertising? Is there a lot of competition? Understanding the niche market you are selling to can significantly increase your return on investment. In affiliate marketing mistakes can be costly and learning from an expert can help you avoid mistakes and get you started on the right path. Rosalind Gardner has written a great book titled “The Super Affiliate Handbook", that helps affiliates understand how to market affiliate programs on the internet.

Remember, targeted marketing, research and websites that convert into sales are key to the affiliate marketing business. Buy a book from an authority in the business, understand what it’s all about, and then jump in and start promoting! This is definitely a business anyone can enjoy and profit from!