How would you like to get paid for selling products that you don't own and not go to jail for doing it?

That is what affiliate marketing is all about. Somebody else goes through all of the trouble to develop a software program, service, or digital content product. They build the web site; they process the credit cards; they deliver the content and they handle the after-sale support and customer service. You collect the money!

What is affiliate marketing?

Affiliate marketing is a revenue-sharing arrangement between the product developer, called the affiliate merchant, and the affiliate marketer who is anyone willing to promote the sale of the product by independently advertising it using any legal means.

This relationship allows the affiliate merchant to grow their revenue by only paying for advertising that actually results in a sale. The affiliate marketer profits by making a commission on a sale that he does not have to manage after the fact. It's a win-win for both parties.

How do affiliate marketers get paid?

That depends upon how the affiliate program is set up. Some affiliate merchants run their own affiliate program. They have special software that assigns each affiliate marketer a special URL to be used in promoting the product or service. The software tracks sales by each affiliate marketer and the merchant pays the commission on a periodic basis using PayPal or some other method.

Other affiliate merchants use third-party affiliate management programs like ClickBank, Commission Junction, ShareASale, and others. The tracking functionality is the same but the payment process and procedures vary among the different services.

How to select a profitable product or service to promote?

Because your income is directly tied to how well the selected product or service sells, and the size of the commission that you will earn, it's important to choose carefully when it comes to choosing an affiliate merchant to partner with.

Choose programs that you're not embarrassed to promote and that you would feel comfortable recommending to family and friends if you were asked.

You will do better if you promote things that you understand and are familiar with. That way you will be able to write better ads without having to strain yourself trying to come up with good things to say.

Only promote products and services for companies who have gone through the trouble to provide you with a training program and sales aids like banners, sample classified ads, and other marketing materials that you can either use directly or model yours after.

Look for programs with commission rates of no less than 50%. Give preference to programs that pay commissions on multiple levels. That means that you will also earn commissions on sales made by people who buy the product through your link and then go on to become an affiliate themselves.

Google the company and the product to see if the company has a good reputation and to see how many affiliate ads are already out there. If the competition is too stiff, find a different product to promote.

Once you have your product just write your ads and start promoting. Remember – NO SPAMMING!

Good luck and hope that you make a lot of money!

Jim is the owner of Starting an Online Business website, the site that provides step by step guide to build a successful internet business.