The latest craze for those clever minded 'internauts' is free electronic goodies in the form of Christmas candy items such as iPhones, iPods, HDTV's, Playstation 3, Xbox 360s, digital cameras, Tomtoms etc. The type of goods listed reflects in no small part the target audience; young people who want the latest gizmos and gadgets and are web mobile. When affiliate marketing starts to catch on in the middle aged community and the silver surfers, expect the type of gifts offered to change substantially.
What is affiliate marketing and how does it work?
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?
Simple. if they persuade you to sign up to their site, and take out a promotional offer, and then persuade a number of people to do the same, then you are generating business for them. Sites like freebiejeebies and kudosnetwork (aimed at the UK, USA and Canada see below) structure their incentives this way. You sign up to the site, take out a promotional offer which is often free, and persuade a number of people to do the same. Once these have all been validated, you get your gift. But you only get credited when the people you have referred take out a promotion themselves. If you need 18 referrals and each of those 18 people need 18 referrals to get what they want, then the site has gained 324 customers. The next 18 from each of those 18 gives 5832 people, yet the site has only given away 19 iPhones. The numbers stack up very quickly, and as you can see, it makes perfect financial sense for them.
Advertising is not cheap, and when the consumer is paid instead of the advertising company, it adds up to quite a lot of nice free 'stuff'. Of course they say 'free', but there is time involved although little or not money leaves the hands of the savvy. Hence the appeals to youngsters (who tend to have lots of the former and rather less of the latter).
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 wouldn't they lose money by giving away iPhones to every person?
In theory, if everyone achieved their referrals targets, got 18, or however many, people to sign up and claimed their free iPhones, the site might make a loss. But in practice, this never happens. Some sign up themselves then forget about it, some sign up a few people and then lose interest, These people have signed up and received nothing in return. There are many people who fall into this category. It all comes out in the wash. If it didn't, the number of referrals required per 'gift' would rise until the site was making money. The sites always make money. That's good news because it means you get paid too.
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 this 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?
The two main sites for UK, USA and Canada are Kudos Network and freebiejeebies Enjoy!
What is affiliate marketing and how does it work?
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?
Simple. if they persuade you to sign up to their site, and take out a promotional offer, and then persuade a number of people to do the same, then you are generating business for them. Sites like freebiejeebies and kudosnetwork (aimed at the UK, USA and Canada see below) structure their incentives this way. You sign up to the site, take out a promotional offer which is often free, and persuade a number of people to do the same. Once these have all been validated, you get your gift. But you only get credited when the people you have referred take out a promotion themselves. If you need 18 referrals and each of those 18 people need 18 referrals to get what they want, then the site has gained 324 customers. The next 18 from each of those 18 gives 5832 people, yet the site has only given away 19 iPhones. The numbers stack up very quickly, and as you can see, it makes perfect financial sense for them.
Advertising is not cheap, and when the consumer is paid instead of the advertising company, it adds up to quite a lot of nice free 'stuff'. Of course they say 'free', but there is time involved although little or not money leaves the hands of the savvy. Hence the appeals to youngsters (who tend to have lots of the former and rather less of the latter).
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 wouldn't they lose money by giving away iPhones to every person?
In theory, if everyone achieved their referrals targets, got 18, or however many, people to sign up and claimed their free iPhones, the site might make a loss. But in practice, this never happens. Some sign up themselves then forget about it, some sign up a few people and then lose interest, These people have signed up and received nothing in return. There are many people who fall into this category. It all comes out in the wash. If it didn't, the number of referrals required per 'gift' would rise until the site was making money. The sites always make money. That's good news because it means you get paid too.
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 this 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?
The two main sites for UK, USA and Canada are Kudos Network and freebiejeebies Enjoy!
About the Author:
go to kudosnetwork AND freebiejeebies for additional information about how to start claiming your free iPhone. Also go to thebestthings.co.uk for additional tips and to make your affiliate marketing additional successful. Get a totally unique version of this article from our article submission service