So I am asked this question a lot. “how do you make money on the internet?” of course the answer to that is as complicated as the question “how do you make money offline?” Just like the “Real World” there are thousands of ways to make money. One of the simplest ways to get started on the web is through affiliate marketing. I am going to try to explain as simply as possible how this is done. Follow these steps in order and you will soon have a wallet jam packed with George Washingtons.
1. Choose a Niche: This is easier said than done. When you really decide to start your online business spend a lot of time with this because it is probably the most important thing you can do. I will give you a hint. The best niches are very specialized. Generally speaking the more popular something is the more competitive it will be and the less you can make. My first successful stint into affiliate marketing I was pushing logo design through logoworks
2. Set up a website: the hard way to do this is to buy hosting, buy a domain name, and have a website coded. The simple, fast and very effective way is to setup a blog. There are a lot of free blogs my personal favorite is wordpress but blogger is easy too.
3. Sign up for an affiliate marketing service: The purpose of these companies is to play the roll of the middle man. In the early days you would have to establish these partnerships one at a time and have to worry about payment from every website you associate with. Now there is a middle man to solve all of those problems. When you log into the site they have a large directory of websites that you can search to find companies in the niche you have chosen. Nearly all affiliate marketing networks are based on CPA (Cost Per Action). What does this mean? You only get paid when the website you partner with gets what they want. Usually that means a sale. So if a visitor to your website clicks on the link and goes to the affiliate site you make money if that visit results in a purchase.

For example with logoworks you make 10% of everything that is sold on the website. So if you were to click on that image and then make a purchase Commission Junction would send me a check. The other affiliate network I use is LinkShare. Both are free to join.
4. Create content: you have to remember that you are not selling a product. The purpose of your content should be to convert your website traffic to traffic on the partner website. They will take care of “closing the deal” you just send them the lead.
5. Drive Traffic to your website: The most effective way to do that is with pay-per-click ads through the search engines. This is another post entirely. But this is how you can get started, click on this link and sign up for an adwords account. Google sells keywords based on bids. This is another reason you can make more money with a niche. The less competitive the keyword the cheaper it is to drive traffic to your website.
The trick is to pay less for the traffic to your website than what you are making from your affiliates. Sounds simple right? Actually it is but there is a little bit of a learning curve so start small and grow slowly.