The latest craze for those clever minded 'internauts' is free electronic goodies in the form of Christmas candy items such as iPhones, iPods, HDTV's, Playstation 3, Xbox 360s, digital cameras, Tomtoms etc. The type of goods listed reflects in no small part the target audience; young people who want the latest gizmos and gadgets and are web mobile. When affiliate marketing starts to catch on in the middle aged community and the silver surfers, expect the type of gifts offered to change substantially.
What is affiliate marketing and how does it work?
Affiliate marketing is a clever way to get people to sign up to what you are offering. The most common form is google ads which appear as hyperlinks next to the google search that you just performed. When these links are clicked, a commission is paid to the person hosting the link either when someone clicks on the link, or when they buy something from the site. Typically this is small, but in the case of many sites, they can be substantially higher.
How do these sites make money and still give away iPhones and PS3s?
It's easy to understand when you study it a bit. To claim your 'free' gift, you need to join up to a site such as kudosnetwork or freebiejeebies (for UK, USA and Canada) and sign up to a promotion such as an online film rental trial. Once you've done this, you select a gift that you want which will have been attributed a certain number of referrals. The higher the number of referrals the higher the value of the gift. Say you needed 18 referrals for your gift, you would need to get 18 people to sign up via your link. By the time your 18 friends have managed to get 18 more friends to sign up, the site has 324 customers, by the next 18, that number has risen to 5832. In a very short period of time, the numbers stack up very quickly, making a lot of money in commission for the site owner.
To buy advertising is not cheap. The advertisers know this, and look towards clever ways to get their product 'out there'. With affiliate marketing the advertiser is paying the affiliate marketing site, who then passes on some of the money to you, who are actually bringing in the punters. Of course, it's not free, but it only takes a little time and a little clever thinking.
How do the site owners make money?
The website owner doesn't have to do the hard work, as you're doing it for them. And you only get paid by them once you reach your target referrals. Meanwhile your referrals are out there doing more work for them. It's you who has to do the clever thinking about who would be likely to sign up to the scheme; you filter out people who you think it would be wasted on; you find clever ways of targeting those who might be in the market for a new iPhone; effectively you are doing their marketing work for them. The affiliate site sits as the middleman between the advertisers and the target audience, and takes his cut like everyone else.
But if everyone completed their referrals, wouldn't the site lose money?
In theory, if everyone achieved their referrals targets, got 18, or however many, people to sign up and claimed their free iPhones, the site might make a loss. But in practice, this never happens. Some sign up themselves then forget about it, some sign up a few people and then lose interest, These people have signed up and received nothing in return. There are many people who fall into this category. It all comes out in the wash. If it didn't, the number of referrals required per 'gift' would rise until the site was making money. The sites always make money. That's good news because it means you get paid too.
And don't the advertisers lose out when people cancel their free trial offers?
Again, they probably would lose customers (and money) if all people cancelled, but this is never the case. There are always people who forget, or who don't know how to cancel. More importantly, the company gets one very important thing; your attention. They get a chance to make a good impression. Think of it as a 'loss-leader', a sales call. If they can convince you that what they are selling you is good, then you will buy it and they will have a happy customer and a revenue stream. The reality is that some will stay, some will go, and some will forget to cancel their direct debit (and so remain 'gym' members by default)
So does this affiliate marketing work?
Well, it's up to you. If your time is worth big dollars, I would say, no. If however you have a bit time to spare and like to explore clever and challenging ways to generate referrals, then why not give it a go. You really haven't got much to lose, have you?
You Game? Check out the following sites for more info: kudosnetwork & freebiejeebies. Click on the links below to visit the sites. Have fun!
What is affiliate marketing and how does it work?
Affiliate marketing is a clever way to get people to sign up to what you are offering. The most common form is google ads which appear as hyperlinks next to the google search that you just performed. When these links are clicked, a commission is paid to the person hosting the link either when someone clicks on the link, or when they buy something from the site. Typically this is small, but in the case of many sites, they can be substantially higher.
How do these sites make money and still give away iPhones and PS3s?
It's easy to understand when you study it a bit. To claim your 'free' gift, you need to join up to a site such as kudosnetwork or freebiejeebies (for UK, USA and Canada) and sign up to a promotion such as an online film rental trial. Once you've done this, you select a gift that you want which will have been attributed a certain number of referrals. The higher the number of referrals the higher the value of the gift. Say you needed 18 referrals for your gift, you would need to get 18 people to sign up via your link. By the time your 18 friends have managed to get 18 more friends to sign up, the site has 324 customers, by the next 18, that number has risen to 5832. In a very short period of time, the numbers stack up very quickly, making a lot of money in commission for the site owner.
To buy advertising is not cheap. The advertisers know this, and look towards clever ways to get their product 'out there'. With affiliate marketing the advertiser is paying the affiliate marketing site, who then passes on some of the money to you, who are actually bringing in the punters. Of course, it's not free, but it only takes a little time and a little clever thinking.
How do the site owners make money?
The website owner doesn't have to do the hard work, as you're doing it for them. And you only get paid by them once you reach your target referrals. Meanwhile your referrals are out there doing more work for them. It's you who has to do the clever thinking about who would be likely to sign up to the scheme; you filter out people who you think it would be wasted on; you find clever ways of targeting those who might be in the market for a new iPhone; effectively you are doing their marketing work for them. The affiliate site sits as the middleman between the advertisers and the target audience, and takes his cut like everyone else.
But if everyone completed their referrals, wouldn't the site lose money?
In theory, if everyone achieved their referrals targets, got 18, or however many, people to sign up and claimed their free iPhones, the site might make a loss. But in practice, this never happens. Some sign up themselves then forget about it, some sign up a few people and then lose interest, These people have signed up and received nothing in return. There are many people who fall into this category. It all comes out in the wash. If it didn't, the number of referrals required per 'gift' would rise until the site was making money. The sites always make money. That's good news because it means you get paid too.
And don't the advertisers lose out when people cancel their free trial offers?
Again, they probably would lose customers (and money) if all people cancelled, but this is never the case. There are always people who forget, or who don't know how to cancel. More importantly, the company gets one very important thing; your attention. They get a chance to make a good impression. Think of it as a 'loss-leader', a sales call. If they can convince you that what they are selling you is good, then you will buy it and they will have a happy customer and a revenue stream. The reality is that some will stay, some will go, and some will forget to cancel their direct debit (and so remain 'gym' members by default)
So does this affiliate marketing work?
Well, it's up to you. If your time is worth big dollars, I would say, no. If however you have a bit time to spare and like to explore clever and challenging ways to generate referrals, then why not give it a go. You really haven't got much to lose, have you?
You Game? Check out the following sites for more info: kudosnetwork & freebiejeebies. Click on the links below to visit the sites. Have fun!
About the Author:
check kudosnetwork AND freebiejeebies for additional information about how to start claiming your free gift. Also check thebestthings.co.uk for further tips and to make your affiliate selling additional successful.
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