For those of you clueless about affiliate marketing, it is a business setup based on revenue sharing. An affiliate agreements to endorse a merchant's products or services on his website. He is provided with a unique code, clicking which directives visitors to the merchant website. The affiliate earns a commission for every customer generated via its website. Some pay for every click while others for every view, few for every lead and many for every sale. Affiliates can earn upto 25% by way of contracts with larger programs offering almost 50%.

Today, affiliate marketing is considered as one of the most trusted and lucrative methods of making money online. If you want to know why, you can read up the reasons given below.

It is easy to setup –

If you are looking to set up an online business, this one is the easiest. It requires low investment. This however does not mean that it does not need a commitment of time and effort. You have to set up a website where you can publish text adverts and banners. It requires only basic knowledge of HTML and writing content. You can hire the services of a web designer and a content writer to get the task completed for you.

You also have the liberty to choose your work hours. You can be your own boss and work at your own speed.

You do not have to create a product –

Affiliate marketing involves promoting a merchant's product. So, you do not have to create any new product or consider production costs when starting up your online business. The storage, packing and shipment costs are taken care of by the merchant. To add, you do not have to deal with the hassles of customer support and complaints.

Absence of a physical location –

This business can be run from the comfort of your home. Since it does not call for storing products and does not need an office of employees, you do not need a separate physical location from where to run your business. The only requirements are a computer, internet connection and a website.

Scope for a global audience –

With the internet, you are no longer tied down to a specific physical location. Also, as the website is available round the clock, time differences are do not matter. A global audience automatically increas the perception potential.

It's free to join –

Most affiliate marketing programs offer free membership. You have to complete a simple registration process to start earning. This gives you an opportunity to distribute yourself among different affiliate programs to see what really works for you. A few programs do have some terms and conditions with objectives to complete in a specified duration of time, yet they are manageable.

A good source of passive income –

Affiliate marketing is an online money making method that carry on without disturbing your 9-5 job. It can become a steady source of passive income supplementing your monthly budget for a few added luxuries.

Low risk –

Finally, there's nothing to lose in affiliate marketing. It proves a win-win situation for the merchant and the affiliate.

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