The concept of affiliate marketing is rather simple. There is a company called X. Then there is a company called Y. Both the companies are affiliated. Company X will direct its customers to company Y which will in turn result in the marketing of company Y's products and vice versa. To promote sales of all the affiliates brands is in short the definition of affiliate marketing This form of marketing is used for Internet businesses a lot.

Affiliate marketing has been utilized since the birth of Internet in the early nineties. Inspired by the traditional business format of revenue sharing that has been going on for ages, it has been very successful in promoting the online business format. Many successful online businesses from Amazon to Google have used affiliate marketing effectively towards their success.

How does affiliate marketing work? Well, especially the concept lies in the fact that you as a user will put the name of the affiliate company at a number of places on your website. These names will also have links to the other company's website. This is to encourage the visitors of your webpage to visit the affiliate websites and promote the products. It is the actual 'click' however to the promoted website that earns user some mullah! The largest trick in this form of marketing is that there is no set book of rules to be followed or processes to exist to in order to succeed in this field. Not many colleges have courses or certification on affiliate marketing So you will have to be really good in it and have a thorough understanding of how it works in order to make money out of it.

Incidentally, there is a lot of money affiliate marketing The gambling and retail sectors are the most profitable ones. The payment is generally through direct bank transfer, PayPal, checks or live wire transfer. However with competition getting tougher, more and more companies are moving away from the pay per click or pay per impression format where if a user of your website simply clicks on an affiliate's banner, you get paid to a more secured format where payments are made only if there are results.

The key to generating steady income through affiliate marketing is in understanding your business needs and putting in hours in finding a strategy to make users visit the affiliate websites. Also remember affiliate marketing can not and should not be the sole source of income from your online business. Use this strategically for a certain segment of your business but use other marketing and advertising formats to encourage the sale of your products.

The term may sound new to you, may appear difficult and complicated, but in truth the successful use of this marketing lies in reading about it in details and following the essential tips to make it work for you. Do not worry if your first few attempts do not fetch you any income – it is one field where you have to learn from your mistakes.

Source by Larry McCullough