Affiliate marketing is a phenomenal creation of the Internet. In no other environment you do this:

Sell products you don't own, don't bother to arrange delivery, forget billing and cash collection, don't bother with after sales service, still get paid and yet not go to prison!

Imagine a whole team of people take care of all the setting up of a web site(s), product sales literature, software systems, billing, delivery and after sales service.

And hat do you do? You just collect a big chunk of money! Wow! OK, it sounds great so lets see what the actual arrangement is in affiliate marketing.

The process is about sharing income between the affiliate merchant (the product developer) and the affiliate marketer (anyone willing to promote the product by all legitimate means).

The relationship will allow the affiliate merchant to grow their revenue by paying only for the advertising that results in a sale. The affiliate marketer will profit by making a percentage on a sale that he does not have to manage after the sale.

*Getting paid*

Getting paid all depends upon how the affiliate program is set up. Some merchants will run their own affiliate program. They'll have special types of software that assigns each affiliate marketer a special link that's used in promoting the product.

The software tracks sales of every marketer and the merchant will pay the commission on a periodic basis using either PayPal or another method of payment.

*Selecting products or services*

Your income is directly tied to how well your selected product or service sells, and the size of the commission you earn, which makes it very important that you choose carefully when it comes to choosing the affiliate merchant you'll be partnering with.

Choose programs that you're comfortable promoting and programs that you'll happily recommend to your family and friends if they were to ask you about it.

In the early days, you'll do much better if you promote products that you fully understand and are already familiar with. This way, you'll be able to write better ads without having to strain yourself coming up with the right things to say.

Something else you should note is that the best affiliate products also include plenty of sales collateral. That means, they'll have a ready made selection of graphics, text ads, solo ads (small articles about the product) and other helpful material so you don't have to spend time creating these.

Another important factor to consider is whether the merchant provides any training for you and the potential customers. Those who do shold be at the top of your list.

Be on the lookout for programs with commission rates no less than 50%. Do give preference to programs that pay commission on multiple levels. This means you'll also earn commissions on sales made by people who buy the products through your link and then go on and become affiliates themselves later on.

Affiliate marketing is a highly rewarding way of doing business on the Internet. It has been around for quite some time in Internet terms but the best is yet to come. Learn more to earn more and prosper.