Affiliate marketing is at its core a very simple concept. You, the affiliate market a product or service for a company (the merchant). Affiliates sign up with the company and begin their effort to bring clients to the merchant.

Advertising is of course the way to make people aware of the product or service. Advertising needs to appeal to the target market strongly. If your advertising is not compelling enough, it won’t attract customers for the merchant. If you can create advertising which grabs peoples’ attention, then you will get sales; which means commissions for you.

You have to advertise smart if you want to make ads which will be powerful enough to get results.

One example of smart advertising is to use other people to bring in more traffic to the site.

The way to make an affiliate marketing program cost effective is simple. It’s a matter of basic math and economics. Let’s suppose that the affiliate makes fifty cents for every visitor they can convince to fill out a form. In one day, they may get ten visitors to do this, for a total of five dollars.

Now, the affiliate can be making a lot more than this if they decide to use the manpower of others. The more visitors that the affiliate can get to make a purchase, fill out forms or best of all, recruit into the program themselves, the more money he or she will make.

To make an appreciable income through affiliate marketing, there are three things which all affiliates should do: the affiliate must find a site which is profitable, link to a company who are generous about sharing their leads and finally, the affiliate needs to find a company which is growing and get involved in their affiliate marketing program while actively recruiting other affiliates for their program.