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 as we know it is changing form. This is one of the new forms. It is targeted specifically, and it involves you the consumer, doing the legwork, incentivised by the shiny techno-goodies they are offering you. It’s not technically ‘free’, it involves some time, one trial, and a lot of willing friends to help you over the line.
What’s in it for the middleman, the website owner?
Considerable amounts of money, of course. He needs you, however, to make the wheels turn - the reason he comes up with salivating prizes to get you off your bum selling on his behalf. You are charged with the job of working out which of your friends would be interested in such a scheme, and more importantly which of your friends wouldn’t, and you keep pushing to reach your goal like a salesman after his bonus (iPhone). Meanwhile Mr. Site Owner sits there taking a commission for every sale her gets, and passes on a residual to you in the form of your gift. His marketing is clever, and as you can see, he is doing very well out of it.
But if everyone completed their referrals, wouldn’t the site lose money?
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.
And what about the advertisers? If everyone cancelled their free trials, would they not lose out?
Possibly, if we were living in an ideal world, but people are people, and there’s a finely balanced pool out there who all behave differently. Do differently it’s almost predicable. Many will take out free trials and cancel them, many more will forget, and some will actually enjoy and use the service they signed up for. The companies who advertise get an opportunity to get you interested in their product, and if they win, they get a customer.
So does this affiliate marketing work?
Yes, absolutely, categorically, and for all parties involved. Is it free? Not completely, but if you are wily, it won’t cost you a penny, just some time and some clever thinking. Find a list of people want a new iPhone themselves, and get them signed up ASAP.
Examples of two UK based affiliate marketing sites for you to check out are: kudos network and freebiejeebies. Click on the links below to visit the sites. And Good Luck!
go to kudosnetwork AND freebiejeebies for more information about how to start collecting your free iPhone. Also go to thebestthings.co.uk for more information and to make your affiliate selling more profitable. Don’t reprint this exact article. Instead, reprint a free unique content version of this same article.
