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How to Make Money Selling Other People’s Products

You can actually start to make money online by selling other peoples product with affiliate marketing. You don’t need to have or create your product before selling, that is the most important part of Internet marketing!

What is affiliate marketing

Affiliate marketing is a type of performance based marketing and it is about promoting products and services through the internet (for example from your blog or your website).  In other words affiliate marketing is an agreement between the affiliate and the advertiser; the affiliate agrees to promote the advertiser’s product and drive targeted traffic (potential customers) to the advertiser’s site. Each time this traffic generates a product sale for the advertiser, the affiliate earns a commission. This model of payment is called CPA (cost per action). In our example the action is to buy a product but there are many more types of affiliate marketing. Read more on how to promote affiliate products

Types of affiliate marketing

There are different types of affiliate marketing and they are:


  1. PPC (Pay per click)
  2. CPA (Cost per action)
    • PPS (Pay per sale)
    • PPL (Pay per lead)

PPC

PPC is perhaps the most easy way for an affiliate to earn some money online. In this affiliate marketing type, the advertiser pays the affiliate whenever a visitor clicks on the ad which leads to the advertiser’s web page (where he further promotes his product). In PPC the affiliate will get paid even if the user that he referred does not buy the advertiser’s product.

Must Read: Google Adsense, Media.net & Addynamo: Which One is the Best?

The best PPC network is by far Google’s AdSense , how much you can actually make from PPC depends from your traffic and your niche. Different niches have different CPC (cost per click). PPC affiliate marketing is perhaps the most easy to implement to your site or blog but because the CPC could be anything between $0,05 and $10 you should perform good keyword research and choose your niche wisely.

CPA or PPP

CPA stands for cost per action, some call this type of affiliate marketing PPP (pay per performance). This type of affiliate is perhaps the most beneficial for the affiliate and the advertiser. It is a win-win scenario because the advertiser has to pay only when a referral (someone that clicked on the ad) performs some predetermined action. The action can be a sale of the advertiser’s product, a participation in a contest, an email submits – it can be a series of promoting actions.

Must Read: Ten Great Tips to Affiliate Marketing Success

Usually only people who are really interested about the advertiser’s product will actually perform the action that is needed, so the advertiser can rest assure that he pays for traffic that is very targeted. He pays only for users who are really interested about his product. On the other hand each time a referral performs the predetermined action, the affiliate earns a commission which is significantly larger than the cost per click of a pay per click advertisement.

CPA (or PPP) can be further classified to PPS and PPL

In PPS (pay per sale) the affiliate will earn a commission each time one of the referrals buys the advertiser’s product. The amount of the commission obviously depends from the value of the product and is predefined by the advertiser. Generally, the commission an affiliate can earn from PPS is much higher than the commission from PPC advertisements.

Must Read: Affiliate Marketing: How to Get Started

In PPL (pay per lead) the affiliate will earn a commission every time one of the referrals fill up a form or an application, sign up for a contest, and in other words perform a predetermined action that could lead to a sale. The amount of the commission is predetermined from the advertiser who hopes to turn some of the leads into sales. That’s why it is important to always promote affiliate products that are closely related to your niche. This way you will be able to send high quality targeted traffic which is more likely to convert to clicks, sales, leads or whatever you are promoting.

This post was last modified on December 19, 2016 9:12 PM

Categories: Business
Don Caprio: @doncaprioHusband, superdad, ubergeek, lazy writer, serious gamer, gadget collector, amateur photographer, web designer. I'm on Facebook, Google+, Twitter, LinkedIn and Instagram.

View Comments (18)

  • Frank,

    Affiliate marketing has remained the most classical way of living the Internet dream...or how do you explain selling something that is not technically your own? Welcome to the 21st century where business models have taken a 360 degrees turn.

    Thanks for sharing this awesome tips with this community and do have a great day!

    - Teungwa

  • Hi Frank, Like you stated PPC is a great way to get your affiliate sales going by laser targeting certain keywords, you can get the right customer almost right out of the gate! Thanks for sharing this. Great write up.

    Young

  • Nice and wonderful writeup bro, i really do appreciate your kind gesture sharing this information, thanks for this.

  • Nice post Frank! But the best product to sell online is and has always been ones own product. Affiliate has been great but due to the flaws in conversion tracking and inefficient promotion result, I will always advocate creating one's own product anytime.

  • Great article, very useful and practical advice that I will be putting into practice for my own site. Thanks!

  • thanks for this informative tips Frank, i never had considered this methods before, thank you.

  • Nice article, I love CPA, It works better for me personally. Their only hurdle is getting approved.

  • My adsense account is approved, but my ads won't display only to show blank boxes... Pls help what should i do?