If you’ve used the internet even a little, you will be aware of affiliate marketing – you know when you get an email persuading you go to a website and sign up for a free trial. Are these sites genuine. How can they give free iPhones away? It sounds too good to be true, doesn’t it? Well, when you delve a little deeper you’ll see a business plan which does make sense, and which seems to be working. Let me explain.
What is affiliate marketing and how does it work?
Affiliate marketing is a clever way to get people to sign up to what you are offering. The most common form is google ads which appear as hyperlinks next to the google search that you just performed. When these links are clicked, a commission is paid to the person hosting the link either when someone clicks on the link, or when they buy something from the site. Typically this is small, but in the case of many sites, they can be substantially higher.
How can they afford to give away iPhones, PS3s and digital cameras?
Simple. if they persuade you to sign up to their site, and take out a promotional offer, and then persuade a number of people to do the same, then you are generating business for them. Sites like freebiejeebies and kudosnetwork (aimed at the UK, USA and Canada see below) structure their incentives this way. You sign up to the site, take out a promotional offer which is often free, and persuade a number of people to do the same. Once these have all been validated, you get your gift. But you only get credited when the people you have referred take out a promotion themselves. If you need 18 referrals and each of those 18 people need 18 referrals to get what they want, then the site has gained 324 customers. The next 18 from each of those 18 gives 5832 people, yet the site has only given away 19 iPhones. The numbers stack up very quickly, and as you can see, it makes perfect financial sense for them.
To buy advertising is not cheap. The advertisers know this, and look towards clever ways to get their product ‘out there’. With affiliate marketing the advertiser is paying the affiliate marketing site, who then passes on some of the money to you, who are actually bringing in the punters. Of course, it’s not free, but it only takes a little time and a little clever thinking.
What’s in it for the middleman, the website owner?
The website owner doesn’t have to do the hard work, as you’re doing it for them. And you only get paid by them once you reach your target referrals. Meanwhile your referrals are out there doing more work for them. It’s you who has to do the clever thinking about who would be likely to sign up to the scheme; you filter out people who you think it would be wasted on; you find clever ways of targeting those who might be in the market for a new iPhone; effectively you are doing their marketing work for them. The affiliate site sits as the middleman between the advertisers and the target audience, and takes his cut like everyone else.
But if everyone completed their referrals, wouldn’t the site lose money?
Theoretically if they gave away iPhones to everyone, then they might make a loss, but as is always the case, not everyone makes it to the number they need to get their free gift; only achieving a couple of referrals or none at all. They have contributed to the list of people signed up, yet have received nothing in return. It all balances out in the end. If it doesn’t, the number of referrals required per item goes up to reflect how savvy the customers are being, or how much revenue the site is receiving. In short they are not likely to lose out as long as the advertisers are happy, and as far as we can tell, they are.
What about the advertisers?
Possibly, if we were living in an ideal world, but people are people, and there’s a finely balanced pool out there who all behave differently. Do differently it’s almost predicable. Many will take out free trials and cancel them, many more will forget, and some will actually enjoy and use the service they signed up for. The companies who advertise get an opportunity to get you interested in their product, and if they win, they get a customer.
So, is affiliate marketing worth getting involved in?
Well, it’s up to you. If your time is worth big dollars, I would say, no. If however you have a bit time to spare and like to explore clever and challenging ways to generate referrals, then why not give it a go. You really haven’t got much to lose, have you?
You Game? Check out the following sites for more info: kudosnetwork & freebiejeebies. Click on the links below to visit the sites. Have fun!
Visit kudosnetwork AND freebiejeebies for more information about how to start collecting your free iPhone. Also visit thebestthings.co.uk for more information and to make your affiliate selling more successful. Get a totally unique version of this article from our article submission service