How to Make Money From Home With Your Website Through Affiliate Marketing

There are so many ways to make money online with your website. If your main concern is how to make money from home, then one of the best ways to do it is through advertising.

Try to look at any of the popular websites. What you will immediately see is that they're displaying all sorts of banner advertisements on their pages. You can have these banners displayed on your website too and start making money from them even if your website is still not very popular. The way to accomplish this is become a member of various affiliate websites. You can do this indirectly too by joining an affiliate network, which is actually just an intermediary that allows you to select from a wide array of merchants or advertisers.

Before signing up with an affiliate website, you should first understand the different payment schemes:

• Pay per impression (CPM)

• Pay per click (PPC)

• Pay per sale or lead.

Pay per impression. This is where you get paid depending on how often the merchant's banner is displayed on your website. CPM actually stands for cost per thousand, for example if the rate is $5 CPM, it means you will receive $5 if the banner has been shown one thousand times to visitors or customers. It follows therefore that the more popular your site, the more you will earn.

Pay per click. As the name implies, you get paid only when the visitor clicks on the merchant's links or banner on your website. In general, the amount you will receive here will be greater than the CPM scheme. How high your conversion rate in this payment scheme will depend on a couple of things: how attractive your banners are or whether they're placed strategically to entice visitors to click and how high the traffic is.

Regardless of the amount of traffic you're getting, your banners should be carefully selected and positioned to encourage visitors to click on them. This sort of summarizes the whole thing about how to make money from home with your website through advertising.

Pay per sale or lead. This payment scheme has the highest rate, but among the three this also has the lowest conversion rate. You will get paid only if your visitor clicks through your affiliate links or banners and makes a purchase or signs up for a service depending on the prescribed action.Usually, you will have to wait until a certain threshold amount is reached, say $100, before you can receive the actual payment.

Never choose an affiliate program based on the payment scheme. Instead, you should base it on your audience. Ask the question: Will these banners be appealing to my visitors? If the answer is yes then go ahead and sign up.

All in all, advertising income is what is sometimes called residual income - you earn even while you sleep. It is one of the easiest ways to make money fast or make money online.

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