Start your own business with affiliate marketing. Affiliate marketing is an effective and easy way to earn passive income. In fact, you can even have multiple streams of income that having financial freedom is no longer just a dream. All you need to have is just a website or a blog and you can in the business of affiliate marketing.

So what is affiliate marketing? An affiliate marketing is a commercial arrangement between a trade merchant and a website owner. The website owner, that is you, allow the use of your blog or website for the promotion of the merchant’s products by linking to the merchant’s website. That’s all you need to do besides, of course, promoting your website.

The merchant pays a commission to the affiliate on all sales generated by the affiliate’s referral. Every time someone clicks on the link on your website and makes a purchase, the merchant will pay you commission, sometimes up to as much as 60 to 70 percent of the cost of the product. Affiliate marketing program is a win-win situation for the merchant, the affiliate, and the customers because all parties win. The merchant gets the sale, you get the commission and the customer gets the product of his/her choice.

Why do merchants want to have affiliates and pay off hefty commissions to you? Well, this is because there are tremendous benefits for the merchant, otherwise, the merchant will have no incentive to do so, right?

Affiliate marketing program gives the merchant a wider market to advertise their products or services. Affiliate marketing will give the product or service more exposure than it may get with other traditional advertising. On top of that, the merchant can save money advertising because they are already doing so on affiliate’s websites. In other words, affiliates like you are already carrying the merchant’s advertisement on your sites.

The more affiliates a merchant has, the more people will see the merchant’s advertisements, which can then be converted to sales. Some people equate affiliate marketing as having an army of sales representatives who will do the advertising and will only get a commission if a customer purchases.

You, as an affiliate of the merchant also enjoy many benefits. The affiliate can earn money just by simply by having an ad or link to the merchant’s website, which prospective customers will hopefully click on it and make a purchase. As soon as the customer clicks on the ad or link on the affiliate’s site, he is immediately transported to the merchant’s website.

These potential customers are referrals from your site. When more referrals make purchases, then you will make more commissions. If you have several websites, then you will have multiple streams of passive income. What a wonderful way to earn money isn’t it?

Affiliate marketing is an excellent way to earn money from the comfort of your home. It is your personal home business and there are virtually no production cost and investment risks. The product is already developed and stocked by the merchant, so all you have to do is to just get as many visitors as possible to your website to click on the merchant’s ads and make purchases.

Best of all, most affiliate marketing programs are free to join, so affiliates do not need to have any start-up investment costs. There are thousands of products and services which you can choose to market.

So if you want to start your own business without any financial risks, if you want to earn money through multiple sources of passive income, try affiliate marketing.