There are two views on how to create an affiliate marketing business. You can either create affiliate revenue through marketing other people’s products, and being paid a commission every time you make a sale, or you can pay others to sell your products. The person who is doing the selling is the affiliate of the person who owns the products.
Let’s consider both ways of making money through affiliate programs or what, in the real world, used to be called commission selling. There is no reason why you should not use both of these methods to make money on the internet, especially if you have a product that others can sell for you.
First, let’s assume that you have a product to sell. It makes no difference whether it is a tangible products that has to be delivered physically to the purchaser, or an electronic product such as an ebook or piece of software. Actually, it does in a way, since electronic delivery is ideal for affiliate marketing systems.
If you have a product to sell, you have to advertise and have people visit your website. You can employ sales personnel to sell the product for you purely on commission. But not only one or two. Consider how many more visitors you could have if you had hundreds, or even thousands, of salesmen working for you, offering your product on their websites and in their mass emailings to their list. That is how the internet gurus do it. You simply persuade people that yours is a good product and that they will be able to sell it on their website. Commissions are typically up to 50% of the sales price for electronically delivered goods, and a bit less that that for hard goods.
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