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Finding ways to supplement your income or becoming your own boss usually leads to the internet. The amount of people who search for a way to make money online is endless. One of the most common paths beginners take to earn an income using the internet is through affiliate marketing programs. These programs make it easy for the average person because it allows you to make money selling other people's products and introduces you to internet marketing.

Affiliate marketing is a relationship between an online merchant or retailer, who has products to sell, and his affiliates, who are willing to promote the merchant's product on their website or any other legal means. Promoting other people's products is very attractive since all you have to do as an affiliate is drive traffic to your referral URL while the merchant handles everything else.

When you sign up to affiliate marketing programs the merchants provides affiliates with advertising tools, such as banners and text ads that links to their website. The affiliates will then post these ads on their website and they receive payment whenever traffic or sales are directed to the merchant's website. Affiliates are usually paid on a commission basis, although some online merchants would prefer to pay a fixed fee.

Here are some key tips for making good money promoting affiliate marketing programs:

Join an affiliate network - an affiliate network manages a group of affiliate programs for various online merchants and retailers. There is usually no fee to join, although other companies and networks may require you to pay a particular fee which I wouldn't recommend you do. There are way too many free programs to join. They are going to make money from your hard work already, why pay them to do so?

Have a website - although many affiliate programs do not require you to have a website because they offer one to their affiliates, you put yourself at a disadvantage because others will be promoting the same site. By having your own website will allow you to promote uniquely and maximize commissions.

Compensation structure - pay close attention to the affiliate program's payment structure. Three common ways they pay are as follows:

1. Pay-Per-Click - the affiliate is paid whenever he or she directs traffic to the merchant's site based on the visitor clicking on your referral link

2. Pay-Per-Sale - the affiliate only receives payment when his or her referral converts into an actual sale.

3. Pay-Per-Lead - similar to pay-per-sale, although affiliates are paid a fixed fee whenever their referral converts into a lead.

Maximize your opportunities - I highly recommend mixing in some affiliate programs that are two-tier. A two-tier program allows affiliates to recommend other affiliates to the merchant which would give you another source of income. When an affiliate you recommends directs traffic or sales to the merchant's website you earn a percentage from those transactions as well.

Maximize your opportunities some more - finally another type of affiliate program you should add to the mix are programs that pay residual income. Residual affiliate marketing programs are where the affiliate is paid weekly, monthly or annually, as long as your referral remains the merchant's customer. In some cases there may be payment for other purchases made.

How Does Affiliate Marketing Work?
Get the answers by visiting Jimmy's blog and download your Free eBook "Affiliate Marketer's Handbook."

Jimmy Adames is an Internet Business Building expert who provides valuable information critical to your financial and online success.

(c) Copyright - Jimmy Adames.

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