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Affiliate marketing is actually a form of performance-based selling where a company compensates one or more affiliates for every customer or visitor brought about by their affiliate marketing efforts. This concept is the core of online commerce and represents a wonderful way for merchants to earn additional revenue without having to develop and implement an extensive sales force. Affiliates offer products and services and receive a portion of the revenue when a purchase is made or a lead is generated. Therefore, a marketer does not need to hire expensive sales staff or pay for advertising.

Because affiliates have no inventory or face-to-face contact with consumers, the merchant does not have to worry about product recall, waste disposal or even sales tax. The affiliate marketing relationship is established between the merchant and the affiliate. This relationship develops because the merchant understands that the affiliate will refer customers to him or her, so he or she compensates the affiliate based on the results achieved. The affiliate can receive a commission for reaching a specific target audience or for referring a large number of prospects.

To succeed in affiliate marketing, it is necessary for the merchant and the affiliates to work well together. The relationship between the affiliate and the consumer is very customer-centric. The affiliate is aware that if he or she does not generate enough revenue, the website or blog will not generate any revenue either. Consequently, affiliates must understand how to use social media to effectively drive traffic and generate leads. They must know what strategies are most likely to attract the consumer and they must keep track of various activities to ensure that all of the affiliate marketing strategies being used are having the desired effect.

Marketers who do not utilize social media to promote their affiliate marketing campaigns are missing out on an opportunity to greatly expand their customer base and develop a strong fan base. The fact that social networking sites allow marketers to easily showcase their products and create forums for customer feedback is an important aspect of this form of internet marketing strategies. Although most of the participants in these forums tend to be interested in promoting affiliate products, the information provided can provide valuable insights into other useful aspects of promoting the product.

Another important factor in using social media to effectively use affiliate marketing strategies is the ability to create blogs and podcasts. These tools can help to track the progress of the affiliates' efforts and provide a means for the affiliates to earn residual commissions. Affiliates who use podcasts and blogs to promote their campaigns also have the advantage of being able to make the content available for free to the public. This gives them the ability to build significant residual income streams while building their brand names and reputations on the internet.

Affiliates may also want to consider engaging in pay per click (PPC) advertising. When used correctly, PPC can significantly increase the amount of money that a marketer can make by simply sending targeted traffic to the merchants' websites. Using PPC advertising in conjunction with social media can give marketers the opportunity to get paid for the consumer's clicks, rather than only earning a fee per consumer. The downside to pay per click advertising is that it takes a lot of time to gain a consistent stream of traffic to a website.

The last way to successfully promote affiliate marketing programs is to take advantage of the various social media platforms. By engaging in what are known as "niche" promotion methods, people involved in affiliate marketing can find a captive audience to promote their products. This method requires that marketers seek out platforms where they can target specific audiences, such as those who are interested in learning more about affiliate marketing or are looking for a particular type of product to purchase. For example, niche marketers may use email marketing to promote products within the blogging community.

One of the most important things to remember when promoting affiliate marketing programs is to focus on creating a positive image for yourself and your business. If you oversell or send mixed messages about the benefits of your affiliate products, consumers will lose interest. This means that an affiliate marketer must not only provide value to potential consumers, but must provide it in a manner that makes them want to transact with that marketer. Most importantly, the marketer must be willing to answer any questions that a consumer may have before advertising his or her affiliate products. This will help to ensure that the affiliate marketer maximizes his or her revenue percentage, while also helping the consumer to feel like he or she is making a good investment.