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Is affiliate marketing legal
1. Is affiliate marketing legal
In this file, you can ref free useful materials about is affiliate marketing legal and other materials for is
affiliate marketing legal such as affiliate programs, affiliate tips…
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I. Affiliate marketing guides
Let's say that you visit my website, where I have an affiliate link to a book on Amazon's website. If you
click that link to visit Amazon's website and then end up buying something from them, I might receive
compensation from Amazon.com.
Software on the merchant's website is used to track when you clicked and when or if you purchased
something. If your purchase is a qualifying transaction, then I receive compensation.
What is an affiliate program?
An affiliate program is a relationship between a merchant and a content publisher that is defined in a
legal document. The agreement is created by the merchant. The affiliate must agree to the terms of the
program to participate.
Terms may include many things, but will always include the following:
The compensation structure - usually a percentage of the sale amount.
The cookie duration. Some affiliate programs - like the Amazon.com program - say the customer
must buy within 24 hours of clicking the link. Others give 30 days, 45 days or longer. The cookie
duration is very important to the affiliate, to ensure that payment is being received for the
results produced.
As you can see from our affiliate marketing definition - it's a lot like commission-based sales. In fact,
several state governments have passed laws that define affiliates as a "sales presence" in that state.
The first state to do this was Colorado. Colorado's law says if a merchant has affiliates that live in
Colorado, the merchant has a physical presence in Colorado and therefore must collect Colorado sales
tax. A few other states have joined the fray in an attempt to get more tax revenues.
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2. Amazon has severed relationships with many of its affiliates because of these new laws. The collection
of sales tax is very burdensome to any business, and Amazon is against having to collect sales tax.
What is an affiliate network?
An affiliate network is a third party that uses software to track affiliate transactions. An example of a
company that does this is Commission Junction.
The use of the affiliate network is transparent to the affiliate. The affiliate link still points to the
Merchant's website. However, special tracking software runs on the Merchant's web server that enables
Commission Junction to track affiliate transactions. Commission Junction bills the merchants and issue
payments to affiliates.
II. Affiliate marketingstrategies
Affiliate marketing is a low-cost
way for merchants to build
awareness and showcase their
products and services. The model
is simple; it works as a
commission-based referral
system. A partner or affiliate
markets a merchant's products
for a "piece of the pie."
Affiliate marketing experts often make an income that can tally over five figures
per month, however only 1 to 5% of thousands of marketers achieve this level.
When an affiliate reaches this elite level they are often referred to as a "super"
affiliate.
How does one become a super affiliate? Can anyone do it? Super affiliates have
common tactics that they embrace and put into place. Anyone can become a
super affiliate, but it will not come without blood, sweat, and a hefty time
commitment. The typical super affiliate possesses the following traits:
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3. Persistence
Patience
Thirst for Knowledge
These three traits combined with the following strategy gives you the formula for
the makings of a "super" affiliate.
1. Find a Unique Niche
The mistake that many affiliate marketing hopefuls have in common is that they
try to offer everything under the sun rather than focusing on a specific niche
market. Do not scatter your efforts, focus on your niche, promote it, and sell it
well.
2. Search Engine Marketing
Once you've built your affiliate storehouse you will need to promote it. Many
affiliates use pay-per-click engines. I suggest that you learn how to achieve organic
search results or hire a search engine marketing company. This will save you from
spending all your profits on pay-per-click engines. Only use pay-per-click engines
if you know what you are doing, otherwise all your profits may end in the hands of
Google Adwords or Overture.
3. Know Your Product, Know Your Audience
Create a resource. By taking the time to learn about the products and/or services
that you are offering you can create information that builds your credibility. That
credibility builds trust. If your viewers do not have trust in you more than likely
they will not purchase from your storehouse. If you want more information on the
psychological process that an online buyer goes through I suggest that you read
my article on the Five Levels of Internet Marketing and the Sales Process. This will
help you in creating a web site that converts well, which in return will increase
your cash flow.
4. Don't Put All Your Eggs in One Basket
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4. Promote products from different merchants. This way if you have a problem with
receiving payment from a merchant, or their products do not convert well the
effects on your business will be minimal. Watch out for exclusivity agreements;
remember this is your business. Protect yourself and diversify so that you do not
feel the famine effect if something goes wrong. There is absolutely nothing wrong
with promoting niche products from different merchants.
5. Seek Knowledge and Embrace Change
If you are familiar with Internet marketing at all you know that what worked three
months ago may not work today. Stay on top of the trends. Seek knowledge, start
by learning something new about affiliate marketing daily. For example remember
those marketing tools called "banner" that use to drive sales at an astronomical
rate a few years ago? Well those banners developed a term called "banner
blindness." That means most online viewers will not click on banners even if they
do pertain to what they are looking for. To be a "super" affiliate you must always
spend time reading, learning, and embracing the changes in Internet marketing.
6. Don't Give Up
It's hard to do, and most of the time those dabbling in affiliate marketing give up
way too soon. Monitor your statistics, watch to see what is working and what is
not. Make changes when necessary. Do one thing daily to promote your storehouse
and be patient. Before you know it you will start getting payments.
Remember that it will not happen overnight. Encompass and develop the
persistence, patience, and knowledge. Then follow the tactics I've mentioned
above and you are on your way to becoming a "super" affiliate.
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