Section 1: Affiliate Marketing 101 –
Preparing for Success
In this section you will learn the basics of affiliate marketing. You will learn what it is,
how it works, and most importantly, how you can make money as an affiliate.
If you are brand new to affiliate marketing, or just getting started, I recommend that you
take time to read this section so that you can build a strong foundation for further
If you are already comfortable with the basics of affiliate marketing, you can skip ahead
to Section 2.
1.1 - What is Affiliate Marketing?
In simple terms, affiliate marketing is where you refer visitors from your website to a
merchant's website. A merchant is any individual or company that sells products or
services online. Wal-Mart®, Home Depot®, eBay®, and Yahoo® are all examples of
merchants with affiliate programs. These companies pay their affiliates to promote their
products and services online. Merchants with affiliate programs range in size from small
businesses to Fortune 500 companies.
You earn commissions when the visitors you refer complete some type of action on a
merchant's website. For example, you may earn a commission if the visitor you refer
makes a purchase, completes a lead form, or downloads some software.
1.2 - How Does Affiliate Marketing Work?
When a visitor comes to your website and clicks on one of your merchant's links, a
tracking cookie is set on the visitor's computer. A cookie, in Internet terms, is nothing
more than a small text file that is placed on a user's computer when they visit a website.
This cookie tells a merchant that a visitor was referred by your website. When that visitor
makes a purchase, or completes some other action on a merchant's website, the merchant
gives you a commission. That's it!
You don't have to fulfill any products, handle customer service issues, or do anything
else. All you're doing is referring visitors from your website to a merchant's website
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