Affiliate Markeeting

Even in times that weren't that tough, Google has made moves to bite the hands that have fed it.  Namely, cost-per-action (CPA) affiliates.  All as Google finds new ways to serve the changing appetites of small and large advertisers who want sales (retailers) or business leads.  And Google isn't slowing down.

In a little-known move, Google created its own mortgage comparison shopping "super affiliate" in late 2009 .  But today we find Google on track to dominate a market that just three years ago it had no offering in. 

Cost-per-acquisition/action (sale/lead) marketing.  It's doing so using its control over Web search -- which it dominates obviously.  And it's just as big as the Geo/Local opportunity in my estimation.  Consider how the pay for performance model is even more appealing to advertisers when they pay **only on a sale or lead**. (not clicks)

Here's an explanation of what Google is now doing for its Google Affiliate Network advertisers and why it's so huge:

Google is now offering *preferred* search ad placement and superior search ad terms to the advertisers who agree to use Google Affiliate Network (GAN).  Google is literally inserting product images of GAN advertisers' products into the space occupied by cost-per-click AdWords ads.  Yes, actual product images (making them cost-per-action 'display' advertisements) that appear where (formerly) *only* cost-per-click AdSense advertisements are running. 

Ever see that before?  We haven't.  And that's what makes this a sizable shift -- for non-GAN advertisers (ie. those working with VCLK's CJ unit), GAN advertisers and, of course, Google.

Google is tapping a totally new revenue stream.  It's literally becoming, itself, an affiliate of its advertisers.  And placing ads directly in AdWords results slots.  Of course, it does this with the endorsement of its advertisers.

And here's where it gets rich for Google: Many of Google's advertisers (if not all) are competing with their own cost-per-click/Adwords campaigns in the same space.  They're participating in AdWords. 

Confused?  Don't be: Just continue to pay Google even if you're slowing down your cost-per-click AdWords spending. 

Indeed, pay Google an inflated cost-per-click price since Google itself (through the GAN division) is now competing for search terms with other advertisers.  The price of that limited amount of space, in Google's auction, now goes up... for all advertisers competing for that search term. 

Hence, although the AdWords market is slowing down Google can prop it up -- with demand it creates for itself.

Competing affiliate networks like Commission Junction (a Valueclick company) can't match these benefits.  In fact, Google's "bundling" strategy threatens to give Google a position of power in yet another online advertising market.  CPA affiliate marketing.

So while I appreciate the Geo/Local market representing an opportunity the new "GAN aspect" is also worth mentioning.

Affiliate Marketing’s Great Profit Potential

Affiliate marketing is to me one of the most wide-open income opportunities in the Internet today. For one, affiliate marketing is the type of industry that can be started by just about anyone out there. It is easy to learn, and usually, it can be the type of business that a person can start without having to invest a dime.

However, I must warn you, affiliate marketing is not a get rich quick type of endeavor. Yet, for a person that is willing to spend some time promoting the affiliate product that they signed up for, depending on the commission structure, and the cost of the product, one can earn a substantial income from affiliate marketing in a relatively short period of time.

What Exactly is Affiliate Marketing?

To those of you who are not familiar with affiliate marketing, let me give you a quick over view of what affiliate marketing is about. First, you have the online store owners. These folks have products to sell online. In order to get people to visit their online store, these folks have to find the most cost effective means possible.

They could spend thousands of dollars in advertising online, paying for clicks to their site that might or might not culminate in a product sale. Often times, unless they have a product that is not readily available online, most people come to their site for comparison-shopping and within minutes of getting to their site, the prospects leave.

So they end up paying for clicks that do not produce any income, something that can be a disaster if it happens a lot. Now, with affiliate marketing, the tide is turn. Essentially, they pay folks like you and me for referring clients to their site. Once the client makes a purchase, they pay a commission to you for referring the client.

Steps to Follow When Choosing an Affiliate Program

That is simple enough right! However, you as an affiliate need to make sure you are referring people to products that will make you a good profit; otherwise, you will be wasting your time, and sometimes your money. So here is what you need to watch for and do when becoming an affiliate:

1)      Chose an Affiliate Program that pays high commission- more on affiliate commissions.

2)      Make sure you pick a product that has a demand- more on affiliate products that sell.

3)      Ask if the affiliate program has a master affiliate program- more on down line building.

4)      Make sure the affiliate program offers free resources- more on free affiliate resources.

5)      Examine if you will represent the affiliate program as an individual or a business- more on choosing a tax status.

6)      Find out how the affiliate program pays- more on affiliate commission payouts.

7)      Check the affiliate program’s reputation- more on reputable affiliate programs.

8)      Plan how you will promote the affiliate product- more on affiliate product advertising.9)      Consider getting a website to promote your affiliate product- more on developing an affiliate site.

10)  Can the affiliate product sell well next to another affiliate product that is similar- more on selling affiliate marketing products that are similar.