The Internet has become a popular vehicle for people to make money online. It has opened doors for thousands of people to start small businesses from their home. Many times they are easy to set up, and maintain. Many take very little money to start while others will require some capital to get going. One of the more popular ways is through affiliate marketing online.

Affiliate marketing online is simple. A manufacturer, product supplier or distributor will build an army of advertisers to help them promote their products or lines. In turn, they will give them a percentage of each sale that is derived from the traffic they send to the sale’s website. The percentages can vary wildly. They can be as low as 1 percent all the way up to 60 percent in some cases. Typically, physical products with higher price tags will offer lower percentages. Alternatively, informational products, like eBooks, will offer higher percentages. But, the sales tags are much lower.

One of the early adopters of this form of advertising was Amazon, and they are still using affiliates today. They pay out hundreds of thousands of dollar every month to their affiliates for the work they do. They are not losing money because they do not have as big an advertising budget because they are able to leverage their affiliates more. It must be working because Amazon is one of the most famous brands in the world, and they have been growing since their inception.

Typically, a person will sign up for an affiliate program that offers products that tie in with a website or email list they have already. Or, they will sign up with the idea of building traffic in a given niche. Many affiliate programs do look for existing traffic before considering applications so that needs to be kept in mind before applying. They will want to make sure that the affiliates they approve will actually be able to send them targeted traffic that will be meaningful. Some will have pretty rigid standards, and will not even accept a person who cannot show existing traffic.

Once accepted into an affiliate program, the company will usually offer some form of tracking code or link to install on the advertiser’s website. Whenever anyone clicks on the link they will be diverted to the product website. However, the destination website will tag the visitor as someone coming from the affiliate’s website. If the visitor ends up making a purchase while there, the company will know to credit the advertiser with a commission.

Affiliate marketing online has grown in popularity for people, and will continue to grow as more companies realize the value in offering these programs to marketers. It is a win-win situation. The product maker is able to tap into a vast array of knowledge and manpower to promote their product. And, the advertisers are able to focus their talents on promotion, and not have to worry about supplying anything, shipping or other issues. Everyone can concentrate on what they are good doing.