Affiliate marketing is a way of marketing someone else's product (Online Merchant) and receiving a commission on any sale made to a new customer that was introduced to the online merchant.
This type of tool benefits both the affiliate and the online merchant. The online merchant gets to reach a lot more people that he or she would not be able to on their own, and maybe reach a niche that merchant never new about. For the affiliate it allows them to use there experience in marketing, and does not have to worry about developing product, storing product, and dealing with administration issues.
A lot of the successful big companies use this type of marketing tool. Like everything in business if you what to become successful, you find a system that work and you apply it to your business. Nowadays you see a lot of companies using affiliate programs. Main reason is because they see the value in only paying for marketing when an actual sale is made. Affiliate marketing is not all about the merchant, but there are some big advantage to being an affiliate marketer. Here are few.
1. Work from home
2. You determine your income by how many hours you put in.
3. No product inventory
4. Small up-front investment compare to a traditional businesses
5. Monster earnings potential!
Hopefully this helps explain a little bit about affiliate marketing. This is a brief description of a type of marketing to that can be very powerful for the merchant and the affiliate. Like anything if you are considering this type of business, it will take some time to develop and master.