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Affiliate marketing on the Internet is just the newest application of the normal business practice of receiving a commission for a referral.
Lawyer, real estate agents and other professionals have referred customers to colleagues, and received a commission on any business generated, for years. Affiliate marketing is simply the same principle applied on a much larger scale.
All businesses need customers in order to thrive, however, the process of getting new customers can be one of the largest expenses a company has.

Can Anyone Do Affiliate Marketing?
Pretty much anyone with even a little bit of computer and internet knowledge can do affiliate marketing. It’s becoming a very popular way for baby boomers to supplement their retirement income.
In the online world, there are affiliate programs for practically any product or service you can imagine.
The process is fairly easy. Send a prospective customer to the seller’s web site and, if they purchase, you earn a commission.
If you have a popular web site, affiliate marketing can be very successful. It’s all a matter of conversion.

What is Conversion?
Conversion is expressed as a percentage and is the number of people that purchase compared to the number of people you send to the seller’s page. It is also the number of people that click your affiliate link compared to the number that visit your site.
You can get a very rough idea of your potential sales by using a conversion rate of 1%. Your actual rates may be as high as 10% or more but 1% is a good place to start.
Let’s say you have a web page that gets 10,000 visitors a week. If 1% click on your affiliate link, that means you will send 100 visitors on to your seller’s landing page. If they have a 1% conversion rate as well, then one of the prospects you send will purchase the product and you will make a commission on the sale. If you are selling, for example, a $ 50 ebook with a $ 30 commission, you can expect to make $ 120 a month from this page.

How Do I Make Real Money?
It all depends on the numbers. Guide more people to your web site, increase your conversion and you will earn more money. Get started by carefully choosing the product you wish to sell. Many people begin affiliate marketing by promoting Clickbank products.
Clickbank.com is a company that acts as the agent for people selling digital products – software, ebooks, etc. – anything that can be downloaded directly to the customer’s computer. All sales go through them and you can be certain they will pay you the commissions you have earned. Their list of available products will indicate the conversion rate of the landing page you will be sending your leads to.
Now it is up to your to presell the potential customer so you can get the highest possible conversion rate for both your affiliate link and the seller’s landing page.
Let’s try that exampe again using a 10% conversion rate. With a 10% conversion rate 10,000 visitors to your web page will result in 1,000 click-throughs. If the seller’s landing page can also generate a 10% conversion rate, then you’ll make 100 sales for the week or 100 x $ 30 = $ 3000 or $ 12,000 for the month.
Now, let’s assume that you have several web pages that are all getting a similar amount of traffic. That’s affiliate marketing.