Affiliate marketing is essentially a website network. It is a modern variation of the practice of paying finders' fees for introducing new clients to a business. Nowadays, affiliate marketing is primarily conducted online as the number of people surfing the Internet for what they want is growing exponentially. It is a popular method of promoting web business in which an affiliate is rewarded for driving traffic (visitor, subscriber or customer) to merchants' websites through his efforts. Commission may be made depending on a certain value of registrant (pay per lead), sale (pay per sale), or any combination. Simply put, it's about paying people money for helping merchants sell products.

Let's say you created a website dedicated to promoting computer repair services/consultations and reaching out to potential customers. While your service is basically fixing PC problems, you notice that your clients also need registry cleaner utilities for the maintenance of their computers. In this case, affiliate marketing could involve contacting software developers selling registry fix or repair products, posting links to their sites on your website, and collecting a percentage of profit for each purchase those companies receive. In the long run, you can exchange links or sign contracts with the companies you are affiliated with. When someone browsing for computer maintenance or repair service on their websites clicks the link to your website and then decides to contact you for a consultation, the website that sends business your way will then receive commission.

In fact, you are not required to have your own business as far as affiliate marketing is concerned. You can make a living selling any products without having to take orders or maintain your inventory.

How is this done? Build up a website to promote the products you are interested in. Make sure to include appealing articles about the products. After your website is established, contact online companies selling similar products and set up affiliate agreements. Those who hit your site and become regular visitors will inevitably be interested in ordering the products advertised on your site. Once an advertisement link is clicked by your site visitor and a purchase is made, you will receive commission.

If you don't have a website, you can still earn money through affiliate marketing by generating targeted traffic to the websites you're affiliated with. Google Adwords is the most important PPC (Pay-Per-Click) advertising system on the Internet. It allows you to directly advertise your affiliate links in the Google search engine results and on their partner networks.

The key to being successful in affiliate marketing is simply driving traffic to your site consistently. The more hits on your website, the more chances you have of gaining profit from purchases made through your links. Promoting your website through eZine and Banner advertising and providing free newsletters for subscribers would be promising ways to generate traffic to your website. Once your site consistently achieves a lower ranking in Alexa toolbar (which means your website is popular), other website owners or companies will be more likely to join forces with you in affiliate agreements.