Affiliate Marketing Basics

Imagine a marketing program that can increases sales 10% to 25%--and you don’t pay a dime unless you get results. Sound too good to be true?"

That’s pretty much how affiliate marketing works. Through these online programs, you sign on with a partner that markets your product or service, often through a link or banner ad you place on their website. The affiliate then gets a commission based on sales, visits, or customers that result from those efforts. It’s the ultimate in pay for performance. “An affiliate partner will do a lot of the marketing for you. And you only owe money if they provide the outcome you want,” says Marty Fahncke, president of FawnKey & Associates, a consulting firm with expertise in affiliate marketing.

At the same time, successful affiliate marketing requires understanding some basics.