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Affiliate programs: basic concepts

In this tutorial I will explain what are affiliate programs and how they can earn online. The concepts are intentionally simplified. The more specific information will in fact proposed in -depth articles .

I want to clarify that I do not promise easy money, immediate and safe for anyone who can turn on a PC, the web because there are already too many useful :-) guides of that type.
how much you can earn online?
The mechanism that allows you to get a gain can be simplified as well: you must send visitors (potential customers) to a site that sells products or services. If these visitors make purchases on the site will reward you. 
The agreement between you and the e-commerce site is called "Affiliate Program ". You are the ' Affiliate also called Publisher. The e-commerce site is called Merchant  or Advertiser.
To be more exact, the figures involved are four:
  1. Potential customers . Are people interested in buying products / services via the Internet.
  2. You / Your site . Through your website you will need to advertise products / services and bring potential customers to a site that sells them.
  3. Merchant . And 'the site you are affiliated: you send him customers, he pays you.
  4. Manager of the affiliate program . Between you and the merchant could be a broker that deals with it to check the origin of the customers, provide sales statistics procured and manage payments. Sometimes ecommerce site performs these tasks without relying on an external service.
Your profit may not be limited to a percentage of sales, but also depend on other actions taken by potential customers. The idea underlying the affiliate programs is in fact the so-called " Pay Per Action "which includes:
PPC - Pay Per Click : Earn a fixed amount for each click made ​​by visitors on the banner / link the merchant inserted into your site;
PPL - Pay Per Lead : Earn a fixed amount for each application (or filling out a form) made ​​by users from your site;
PPS - Pay Per Sale : you earn a percentage (or a fixed amount) to the value of purchases made ​​by visitors coming from your website.
Example.
Consider a site that sells mobile phones and PPC will pay $ 0.05, $ 1 PPL and PPS 5%.  
On your website you describe a phone model and put links to the site that sells it to $ 200 
100 users click on the link, 5 register on the site that sells it and one of them buys it. 
Your profit will be 100 x 0.05 = $ 5 for the click, 5 x 1 = $ 5 for the lead, 5% of $ 200 = $ 10 per sale. 
You have earned a total of $ 20.
How do you start?
To make money with affiliate programs, you must:
  1. Choose one or more merchant who to affiliate.
  2. Create contextual content to the products that you want to "sell".
  3. Bring potential customers to your web pages (via placement in the search engines, buying advertising, etc ..)
Choosing the merchant
The merchant available in the world are hundreds, each offers at least one product / service and many will offer tens of thousands. So the choice is not lacking, it is important to choose well. Factors to consider are the following:
  1. Site quality-merchant . You buy it on that site? She budget, or, alternatively, products hard to find elsewhere? It 'a site / famous brand? You inspire confidence? If you answered yes to all (or most) of these questions continue from Step 2.
  2. Type of products / services . The users of your site may be interested in some products sold by the merchant ? You are able to create content on those products? If you wish to purchase advertising on search engines quickly assesses how much competition there is (a more detailed analysis can be done at a later time).
  3. What do you pay? Estimate when you can earn per sale it is essential if you are considering buying advertising on search engines.
  4. The merchant uses cookies to store the provenance of the customer? The merchant must assign you the sales commission even if the customers buy many days (or months) after clicking the links on your site. The merchant who do not use cookies are to be avoided . 

Create targeted content
The  merchant who choose to become an affiliate is responsible for all phases of the sale: customer acquisition, order management, payment processing and shipment of goods. Your task is "only" to help potential customers find a website that sells the product they are looking for. It should say to convince potential customers to buy right in the site of the merchant that you are affiliated with. How to do? There are various more or less effective:
  1. Insert banner ads on your site or in your newsletter.
  2. Buy contextual advertising in search engines and send visitors directly to the site of the merchant .
  3. Create content on the product you wish to sell and insert a link to a site that sells. For example you can write a review, a news report the opinion of others, compare it with other products and specify what it costs in the various sites.
I deliberately wrote the various possibilities in order of increasing effectiveness:  the banners do not do much , the potential suitor looking for information about the product before buying it and also hopes to find the site with the most affordable price. Internet allows you to quickly jump from site to site in search of information. For this reason, the credibility of your site is critical , the user reading your pages must think: "I'm in the right place. I start from here to decide what and where to buy." If I were looking for a camera, would you rather buy after clicking on a banner ad on a site or where any reading on a site in the industry that "It has all the functionality of an expensive professional machine, but it allows to make beautiful photo guaranteeing an excellent quality / price ratio. The you can buy on these sites: A ($ 150.00) B ($ 145.00) C ($ 165.00) D ($ 140 with Free Shipping method) "? (These concepts are explained in detail in the following articles: " How to make money with a blog using affiliate programs "," Become a blogger authoritative and make money in a direct and indirect ")
In summary : the basic concept is to present a product on your site and insert a link to a site (to which you are affiliated) that sells it. If you get paid by how pay per click you only have to worry about sending as many visitors as possible to the site of the merchant. If you paid with a percentage of sales have acquired, you have to make sure that users of your site should be on the site the merchant only when they are really looking to buy. Otherwise you'll just free publicity.
In future articles I will explain in detail the various operating modes: insertion of contextual advertising, buying advertising adwords + landing page, creating web pages using the product catalogs etc .. 
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