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Saturday, December 19, 2009
By Andrew Goodman Free iPhones for you and your family? Sounds too good to be true doesn't it? The latest craze sweeping the internet is affiliate marketing, and it's building up quite a head of steam. There are of course sceptics, but those who have been getting involved seem to be happy enough, and the affiliate sites themselves seem to be growing in number. They promise iPods, iPhones, digital cameras and PS3s to 'members' who sign up for a trial promotion, and get others to do the same. Are these sites for real, are they a scam and how can they afford to give stuff away for nothing? Read on and I'll explain.
Affiliate Marketing - how it works
Affiliate marketing is a means of incentivising referrals to websites, a way to get people to get other people to sign up to trials. It might be an ad (like google adwords), or a promotional link banner through your website. It's a bit like a sales commission for doing work on their behalf. If you put a link to another website on your website and someone clicks through it and then signs up to that product or service, you will get paid a commission for bringing in customers. Normally, this is a fairly small amount, but in some cases the stakes are much higher
How can they afford to give away iPhones, PS3s and digital cameras?
Because of the way that sites like kudosnetwork and freebiejeebies (see below) are structured. The reason they can give you so much more is that most everyone who signs up wants to get an iPhone for themselves, and so it's not just 18 referrals that you get, it's the 18 referrals that each of the 18 people that you referred go out and get. That's 324, and if all of those people want an iPhone, and get one, that's 5832 customers all for the cost of 19 iPhones paid out, and so on it goes. As you can see, in a very short space of time, the numbers of people, and hence the income grows exponentially, and they can afford to honour their promise.
To buy advertising is not cheap. The advertisers know this, and look towards clever ways to get their product 'out there'. With affiliate marketing the advertiser is paying the affiliate marketing site, who then passes on some of the money to you, who are actually bringing in the punters. Of course, it's not free, but it only takes a little time and a little clever thinking.
How do the site owners make money?
They make a commission for everyone who takes out a promotion. They pass on some of this to you. As you are doing the legwork, you are identifying the people and persuading them to sign up; ruling out those who it would be wasted on. You are filtering out, through your knowledge, those who would never sign up. Effectively, you are doing the donkey-work, and the site owner is just sitting there and taking his cut. So as you can see, there's quite a lot in it for him.
But if everyone completed their referrals, would the site lose money?
It is possible that if everyone suddenly did complete all their referrals, that the site might temporarily be out of pocket, but they would raise the amount of referrals required to ensure that they are always making a profit. As you come at the bottom of the chain, you are the last to get paid, so to speak, so know that the sites always have cash, and that's how they honour their contract with you, and give you your iPhone. Also remember, it pays for them to keep their reputation sweet amongst their agents (you guys), as without you and your clever efforts, they are nothing. Can they really afford to go around making promises they can't keep? Not for long, and these sites are alive and well and have been for some time, so it appears they've got the balance right.
What about the advertisers?
It is possible that if everyone suddenly did complete all their referrals, that the site might temporarily be out of pocket, but they would raise the amount of referrals required to ensure that they are always making a profit. As you come at the bottom of the chain, you are the last to get paid, so to speak, so know that the sites always have cash, and that's how they honour their contract with you, and give you your iPhone. Also remember, it pays for them to keep their reputation sweet amongst their agents (you guys), as without you and your clever efforts, they are nothing. Can they really afford to go around making promises they can't keep? Not for long, and these sites are alive and well and have been for some time, so it appears they've got the balance right.
So does affiliate marketing work?
Well, it's up to you. If your time is worth big dollars, I would say, no. If however you have a bit time to spare and like to explore clever and challenging ways to generate referrals, then why not give it a go. You really haven't got much to lose, have you?
You Game? Check out the following sites for more info: kudosnetwork & freebiejeebies. Click on the links below to visit the sites. Have fun!
About the Author:
Visit kudosnetwork AND freebiejeebies for additional information about how to start claiming your free gift. Also visit thebestthings.co.uk for additional information and to make your affiliate marketing additional profitable. You can get a unique content version of this article from the Uber Article Directory. 
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