By K. Faram

A lot of people are starting online businesses and online marketing either to supplement their current income levels or for it to become their primary source of income. Why is this? Quite simply online marketing provides them with a lot of benefits!

First, if you market your products online you can reach just about everybody with an internet connection. This of course means a much wider market for you and therefore larger profits. Second, the savings involved – setting up an online business requires only a fraction of the cost required to set up a brick and mortar business.

Another aspect that attracts a lot of people to online marketing is the fact that you do not have to own your own products to get started. You can start making a lot of money just by promoting and selling other peoples products. And getting started with this kind of marketing is actually a lot easier than you might think. All you need to do is to set up an agreement with an online retailer or merchant, and you can immediately start making money by selling the merchants or the retailers products.

Incidentally, the most popular and the fastest growing method of selling other peoples products on the internet is affiliate marketing. Simply put affiliate marketing is a relationship between an online merchant or retailer, who has products to sell, and his affiliates, who promote the merchants product on their website or by other means of internet marketing.

In a typical affiliate marketing set up, the merchant provides his affiliates with promotional material such as banners and text ads that links to his site. The affiliates post these ads on their website and they get paid whenever traffic or sales is directed to the merchants website. Affiliates are often paid on a commission basis, sometimes on multiple tiers, although other online merchants opt to pay a fixed fee for the affiliates compensation. Signing up is usually free, although other companies and networks may require you to pay a monthly membership fee.

After signing up with an affiliate program of your choice and becoming an actual affiliate, you are now ready to start making a lot of money by selling other peoples product online. But how do you make money? There are a number of ways for you to earn money as an affiliate, and most of these ways depend on the type of affiliate marketing program youve actually gotten into.

Affiliate marketing programs tend to compensate their affiliates in one of three ways: pay-per-click (PPC), pay-per-sale (PPS), or pay-per-lead (PPL). With pay-per-click, you are paid whenever you direct traffic to the merchants site. PPS and PPL affiliate marketing programs work rather differently. In PPS, you only get paid when your referral converts into a sale. PPL affiliate programs work similarly – you are paid a fixed fee whenever your referral converts into a lead for the company.

Yet another way of earning more profits with affiliate marketing is through residual income. Residual affiliate programs are affiliate programs where you get paid over and over for each referral and as long as that customer remains a customer of the merchant. One form of residual program pays you a commission every time the referred customer purchases something on the merchants site and another form pays you a percentage every month for as long as the company keeps the referred customer.

With a lot of options available and a lot of ways to earn money, affiliate marketing is undoubtedly the most popular and the easiest way to make money by selling other peoples products online. But how much money you get from affiliate marketing actually depends on you as an affiliate. If you are dedicated and hardworking you would certainly get more from the program compared to those affiliates who simply sign up and forget about the program later.

About the Author: Kerenza Faram is the author of several informative articles on internet marketing.

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