What are affiliate marketing companies? And what should you know about them? I would define an affiliate company as any company that allows others to sell their products in return for a portion of the profits.
In case you’ve never heard of this concept before, it’s a powerful idea. To the best of my knowledge, online affiliate marketing started with Amazon.com. They were the first website (that I know of) that started profit sharing with people who sent them traffic and helped them generate sales. However, the concept of affiliate marketing (offline) has been around for 100 or more years.
An Example of Affiliate Marketing Companies
Here’s how it works. Jim creates a helpful training course on power-tools. He decides to sell the training course for $199. He creates a website to sell the course. Rather than try to sell the training course all by himself, he allows others to sell the product, too. In return, he gives his affiliates a 50% commission for selling the course, and he keeps the other 50%.
When people visit his website, they can purchase the course and/or sign up as an affiliate. When they sign up as an affiliate, they get their own unique link to promote. The affiliate promotes the link on his blog, through the article or video marketing, or by using pay-per-click advertising. Anytime someone purchases the course via their unique affiliate link, they earn the commission. It really is that simple. Jim handles the payments, shipping the product and customer service. The affiliates just focus on sending traffic and generating sales.
Even better, Jim only pays people when they make a sale. He doesn’t have employees either. And he can potentially have hundreds or thousands of affiliates promoting his course for him while he does what he wants to do.
Because this concept is so powerful, lots of major companies embrace the concept of affiliate marketing companies to gain market share.
Top Affiliate Companies
1. Amazon: Amazon® is quite perhaps the largest affiliate marketing companies on the internet, and the oldest. When you join Amazon’s affiliate program, you can earn commissions from sales generated through your links. In most cases, you will earn between 3% and 6% of each sale, depending upon the product cost and category.
2. eBay: Believe it or not, eBay® has a wonderful MLM affiliate program to send traffic to their website. When people visit eBay through your affiliate link, and they sign up for an account and make a purchase, you can earn a commission.
3. ClickBank: ClickBank® is probably the second largest affiliate marketing company around behind Amazon.com. They do hundreds of millions in sales. They offer thousands of eBooks and courses covering just about any topic imaginable. All you do is a search for products to sell and place them on your website or blog. Also, if you have a product you want to convert into an affiliate product, you can do that at ClickBank. Best of all, they will manage your affiliates, process payments, and handle customer support issues. And they will send you a check each month.
4. Site Build It: I promote Site Build It® because I use and love the program. Site Build It offers generous commissions for each sale, plus a residual commission when people renew their website each year. You can also build a sales team and earn commissions and overrides from people you bring into the program.
These are just four of the thousands of affiliate companies out there. Some affiliate marketing companies simply allow other people to create their own affiliate products. And other companies simply use affiliate marketing to grow their business. As you can tell, the options are practically endless.
What You Should Do
If you are thinking about working with an affiliate marketing companies, you should do your research first. At a minimum, you should buy the products. That way you know whether or not the product is a quality product and offers a real value. In addition, you should research the company’s reputation, see if there are any complaints against them, and check their status with the Better Business Bureau.
Once you find an affiliate marketing companies you want to work with, your key to success is to send a tsunami of qualified traffic to your affiliate link. By doing so, you will generate some sales and earn some nice commissions. After you gain some valuable marketing experience, you can create your own products and affiliate program.