Imagine you went to a new restaurant and had one of the most delicious meals in a long time. You met the owner and hit it off with him too. You go back home and meet with your friends the next day and suggest that they try out this new restaurant.
Your friend goes in that night and also enjoys their meal. This time, as your friend is settling the $50 check, the owner asks her how she heard about his new establishment when she mentions you.
The owner then writes you a check for 10% ($5 in this example). In fact the owner is so happy with the referral you gave him that every time your friend eats at the restaurant, the owner send you a check valued at 10% of your friend’s bill.
The more friends you refer to the restaurant, the more checks you receive in the mail.
This is affiliate marketing! It’s essentially an effective way for your business to have an army of salespeople working for you on a commission-only basis. The affiliate networks that have excellent high-traffic publishers and focus on smaller businesses typically take between 20-30% of the affiliates’ commission with varying one-time set up fees of between $550 to $2,500.
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