LINKS leading to customers
'Affiliate marketing' offers commissions for sales
These spam-mails, riding the tail of notes for body-part augmentation,
free legal advice and reduced mortgage rates, usually meet with
a sigh of disbelief and a quick tap of the delete key.
But this time, it's legit.
Several Boulder residents have found a way to make money on the
Internet that is all the things it claims to be: Cheap! Easy! Little
time commitment!
"It's very simple," said William Brown, owner of Harman
Research, a Boulder-based computer-consulting business. "There's
no smoke, no mirrors. I'm sure there are a lot of people making
a living doing it."
The concept has been around since people began using the Internet
to market their goods, and, on a large-scale basis, is how Amazon.com
officials make their millions: Rather than offering their own goods,
they help people find what they want to buy, then link them to that
Web site.
It works like this: A person sets up a Web page, visits several
sites that offer "affiliate marketing" links to those
sites and waits for the money to come in. If a person visiting the
Web site links to the other site, say Match.com, and signs up, the
person who linked to that site receives a commission. Some people
work a little harder by writing reviews about the products they're
linking to or by purchasing keywords on search engines, such as
Google, that cause their Web sites to show up first during searches.
For example, a person who wants to sign up for AOL's e-mail service
goes to Google.com, searches for "sign-up for AOL" and
gets a list of sites with those keywords. One of those sites is
likely to be
Brown's because he bought those keywords from Google.com. If the
person then links through to AOL from Brown's site, Brown makes
a commission.
"So all I've done is put a bunch of advertisements on my site
and let the search engines find them," Brown said. "I
just keep adding more sites."
After his wife had a baby earlier this year, Brown began as an
affiliate to bring in additional income for his family.
"With the kids and the family, I don't have a lot of time
to do customer service," he said. "With this, you just
click through my site and you're done. That's what fascinates me
is you can spend so little time and make money."
Pamela Metivier, author of "Affiliate Selling: Building Revenue
on the Web," said there are thousands of affiliate programs,
from Match.com to Netflix.com, and they've been around since about
1996.
"There are tens of thousands, probably millions of affiliates,"
she said. "Just about anyone who has a site with a lot of traffic
is an affiliate."
Affiliates begin by visiting a Web site that allows them to choose
affiliate programs. Those sites include www.befree.com, www.linkshare.com
and www.commissionjunction.com.
"You sign up for free," Metivier said. "They give
you a piece of code, and you can paste it into your Web site or
e-mail. You don't need anything but basic HTML."
David Besnette, who runs the Web site for Pedestrian Shops shoe
store in Boulder, became an affiliate for SpamArrest.com out of
loyalty to the product.
"I'd go away on vacation and get 300 e-mails for vicodin,"
he said, adding that he would never need that much pain medication.
"A friend of mine signed up for SpamArrest.com and told me
about it."
He adds a link that describes the spam-guard product to all of
his e-mails and his Web site, and, if people link through and sign
up, he makes a commission.
"It hasn't been a gold mine by any means," he said. "I've
made about $100 in three months, but I haven't been very aggressive."
Metivier said a Web-site owner's belief in the product as well
as the customer's interest in finding it is what makes affiliate
marketing effective.
"What's improving through affiliate advertising is that rather
than pushing information, you position your site so you're at the
right place at the right time: intent marketing," she said.
"Web sites are using less banner advertising, so you happen
across advertisements while you're looking for that information."
As an example, Metivier said a camera aficionado could use his
or her digital-camera Web site to link to the cameras he or she
recommends. Both the affiliate and the person selling the camera
benefit because the affiliate makes a commission, and the person
selling the camera can control the percentage of the sale that goes
to marketing.
"If I just buy $5,000 worth of ads, I might not get a single
sale," said Metivier, who said she has about 100 affiliates
linking to her Web site, www.mygoals.com. "This is like having
a billboard on the side of the highway, but I only have to pay if
someone pulls over and eats at my restaurant."
People who link through affiliate ads generally already are looking
for that information, unlike spam mail or pop-up ads that assume
all people want mini-cams for home security even if they're browsing
for information about the Amish lifestyle.
"If you want to buy a camera and you type in, 'buy a camera,'
you want to see those ads," Metivier said. "If you're
reading about giving birth, you probably don't want to buy a digital
camera."
She said some people work as affiliate marketers full time by either
creating text to interest people in their Web sites or through buying
key words through search engines so people will link to their pages
more often.
"You can make tens of thousands of dollars a month,"
she said, "and these are small home-based businesses."
There are some issues to avoid, she said. Don't buy search key
words that might be more expensive than what the affiliate site
offers in return. Don't try to market the product as your own. Don't
try to mislead people by saying the link leads somewhere it doesn't.
"What's most important to the merchant is the business relationship,"
Metivier said. "And they'll check. You shouldn't have to trick
people into linking to the site by making it look like a game. Merchants
do check for trademark and copyright abuse, so you need to reference
to the actual true merchant site."
And, she recommended linking to sites the marketer likes.
Consultant Brown, who also owns www.stopthejunkmail.com, sticks
with reputable sites and sites he uses.
"I just link to stuff that I like — stuff that I use
in business every day," he said. "There are lots of ways
to make money. Now I know why spam is such a problem."
By Kelly Kennedy, For the Camera
January 2, 2004 |