Affiliate marketing has become one of the most effective ways to advertise online. It is also one of the easiest ways for anyone with a website to make a profit online. Affiliate Marketing is an agreement between a merchant and a website owner. The website owner, or the affiliate, allows the use of their site for the promotion of the merchant's products by linking to the merchant's website. In exchange, the merchant pays a commission to the affiliate on all sales generated by the affiliate. Every time someone clicks on the link on the affiliate website and proceeds to make a purchase, the affiliate gets a commission. The merchant will pay the affiliate only when a customer clicks on the product link and makes a purchase.

Are you a webmaster who needs funds to keep your website running?  Or is your website the only way for you to earn income?  Whichever you are, for as long as you are a webmaster or a web publisher and you need cash, affiliate marketing may work well for you.  With affiliate marketing, you may get a lot of cash pouring into your bank account easily.  And if your website is rich in great contents and you want to earn more profit, why not get into the Google Adsense program as well?

Why Affiliate Marketing?

Well, simply because affiliate marketing is the easiest and probably the best way to earn profits online, unless otherwise you are a businessman and would rather sell your own products online than advertise other businessman’s products on your site.  But even online retailers can benefit from affiliate marketing programs, because affiliate marketing actually works for merchants as well as it works for the affiliates.

Affiliate marketing, simply said, is a relationship or agreement made between two websites, with one site being the merchant’s website and the other being the affiliate’s site.  In the relationship, the affiliate agrees to let the merchant advertise his products on the affiliate’s site.  The merchant, on the other hand, would agree to pay the affiliate in whatever method they have agreed into.  This would generally mean easy income for the affiliate, as he would do nothing but place the retailer’s ad on his site.  This would also be very beneficial for the merchant, as getting affiliates to advertise their products would be a lot more affordable than hiring an advertising firm to promote their products.

There are a variety of methods on how the merchant would compensate the affiliate for his services, and for the webmaster, these methods simply translates to the method by which he would earn easy cash.  Among the more common methods of compensation are the pay-per-click method, the pay-per-lead method, and the pay-per-sale method.  The pay-per-click method is the method most preferred by affiliates, for their site’s visitor would only have to visit the advertiser’s site for them to gain money.  The other two methods, on the other hand, are better preferred by merchants, as they would only have to compensate you if your visitor becomes one of their registrants or if the visitor would actually buy their products.

Getting much profit on affiliate marketing programs, however, does not depend so much on the compensation method is it does on the traffic generated by your site.  A website that can attract more visitors would generally have the greater chance of profiting in affiliate marketing programs.

What about Google Adsense?

Google Adsense is actually some sort of an affiliate marketing program.  In Google Adsense, Google act as the intermediary between the affiliates and the merchants.  The merchant, or the advertiser, would simply sign up with Google and provide the latter with text ads pertaining to their products.  These ads, which is actually a link to the advertiser’s website, would then appear on Google searches as well as on the websites owned by the affiliates, or by those webmasters who have signed up with the Google Adsense program.

While one can find a lot of similarities between Google Adsense and other affiliate marketing programs, you can also see a lot of differences.  In Google Adsense, all the webmaster has to do is place a code on his website and Google takes care of the rest.  The ads that Google would place on your site would generally be relevant to the content of your site.  This would be advantageous both for you and for the advertiser, as the visitors of your site would more or less be actually interested with the products being advertised.

The Google Adsense program compensates the affiliate in a pay-per-click basis.  The advertisers would pay Google a certain amount each time their ad on your site is clicked and Google would then forward this amount to you through checks, although only after Google have deducted their share of the amount.  Google Adsense checks are usually delivered monthly.  Also, the Google Adsense program provides webmasters with a tracking tool that allows you to monitor the earnings you actually get from a certain ad.

So, where do all of these lead us to?

Where else but to profits, profits and even more profits!  Affiliate marketing programs and the Google Adsense program simply work, whether you are the merchant or the affiliate.  For the merchant’s side, a lot of money can be saved if advertising effort is concentrated on affiliate marketing rather than on dealing with advertising firms.  For the webmaster, you can easily gain a lot of profits just by doing what you do best, and that is by creating websites.  And if you combine all your profits from both the Google Adsense program and other affiliate marketing programs, it would surely convert to a large amount of cash.

All the same, the best benefit of being an affiliate marketer is the opportunity to increase your income; and you can make a profit even if affiliate marketing is only a sideline business. With your own affiliate business, you can earn easily earn extra income, although you do have to exert effort and use your imagination to maximize your earning potential. Indeed, affiliate marketing is one of the simplest and most effective business opportunities on the web today.