Is Affiliate Marketing the Next Internet Explosion?

It’s not a new concept at all. In fact, people have made money as middlemen for thousands of years. But recently, this ancient concept has taken on a new form of life. Today, a unique kind of middleman is making money on the Internet. These people are known as “Affiliates”.

What is an Affiliate?

An “Affiliate” is a company or a person that connects the seller of products or services with buyers of products or services. 

According to the Affiliate Summit held in early November 2003 in New York City, affiliate marketing is a $14 billion industry (Source: Marketing Sherpa). Forester Research reports that affiliates deliver 13% of retail sales today. In fact, the National Retail Federation's Shop.org cites that affiliate marketing is one of the most effective methods for enabling online retail commerce, a $95 billion industry. This industry is expected to grow to approximately $230 billion by 2008. (Source: Forrester Research, August 2003).

A Viable Income Source

Affiliate programs are a viable way for website owners to earn commissions. In most affiliate relationships, one web site owner (the merchant or affiliate provider), agrees to pay another web site owner (the affiliate), a commission simply for referring customers.  This type of affiliate business can be a viable income source that is well-suited to people who wish to work from home.  A key feature is that the affiliate can earn money without ever having to handle any merchandise, process orders or speak to customers.

One of the most effective means of creating income this way is to become an affiliate of a large, well established internet company. In this way, an affiliate can potentially earn commissions on every sale, as many affiliate providers will pay a percentage of each sale when a customer clicks through from the affiliate’s website to the provider’s web site. Others will pay “finder’s” fees when potential customers are referred to their on-line business. And some providers will even pay for repeat or future purchases made by customers who originally come to their web site through a link from an affiliate’s web site. In essentially all cases, the details of an affiliate’s payouts are usually detailed on the Terms and Conditions section of their website. 

Free Affiliate Programs

Unlike pre-Internet days, contemporary Internet middleman-affiliates have the power to reach millions of customers all over the world. Yet, most people who want to earn money from home are unaware that many of the most successful companies on the Internet offer free affiliate programs.  Did you know that Amazon.com and eBay.com are among the most popular affiliate providers in the world? However, taking advantage of affiliate programs requires that you own or create a viable website. With starting prices at less than about $150 dollars, World Market Systems will build their customer a website that is suited to promoting affiliate programs. And, World Market Systems even includes interesting content such as Newsfeeds and Weather.  And, they enable their clients to customize their sites at no additional charge.