Free IPhone’ Offers – All About Affiliate Marketing

The latest craze for those clever minded ‘internauts’ is free electronic goodies in the form of Christmas candy items such as iPhones, iPods, HDTV’s, Playstation 3, Xbox 360s, digital cameras, Tomtoms etc. The type of goods listed reflects in no small part the target audience; young people who want the latest gizmos and gadgets and are web mobile. When affiliate marketing starts to catch on in the middle aged community and the silver surfers, expect the type of gifts offered to change substantially.

What is affiliate marketing and how does it work?

Affiliate marketing is a means of incentivising referrals to websites, a way to get people to get other people to sign up to trials. It might be an ad (like google adwords), or a promotional link banner through your website. It’s a bit like a sales commission for doing work on their behalf. If you put a link to another website on your website and someone clicks through it and then signs up to that product or service, you will get paid a commission for bringing in customers. Normally, this is a fairly small amount, but in some cases the stakes are much higher

How can they afford to give away iPhones, PS3s and digital cameras?

Simple. if they persuade you to sign up to their site, and take out a promotional offer, and then persuade a number of people to do the same, then you are generating business for them. Sites like freebiejeebies and kudosnetwork (aimed at the UK, USA and Canada see below) structure their incentives this way. You sign up to the site, take out a promotional offer which is often free, and persuade a number of people to do the same. Once these have all been validated, you get your gift. But you only get credited when the people you have referred take out a promotion themselves. If you need 18 referrals and each of those 18 people need 18 referrals to get what they want, then the site has gained 324 customers. The next 18 from each of those 18 gives 5832 people, yet the site has only given away 19 iPhones. The numbers stack up very quickly, and as you can see, it makes perfect financial sense for them.

To buy advertising is not cheap. The advertisers know this, and look towards clever ways to get their product ‘out there’. With affiliate marketing the advertiser is paying the affiliate marketing site, who then passes on some of the money to you, who are actually bringing in the punters. Of course, it’s not free, but it only takes a little time and a little clever thinking.

What’s in it for the site owner?

The website owner doesn’t have to do the hard work, as you’re doing it for them. And you only get paid by them once you reach your target referrals. Meanwhile your referrals are out there doing more work for them. It’s you who has to do the clever thinking about who would be likely to sign up to the scheme; you filter out people who you think it would be wasted on; you find clever ways of targeting those who might be in the market for a new iPhone; effectively you are doing their marketing work for them. The affiliate site sits as the middleman between the advertisers and the target audience, and takes his cut like everyone else.

But if everyone completed their referrals, wouldn’t the site lose money?

Theoretically if they gave away iPhones to everyone, then they might make a loss, but as is always the case, not everyone makes it to the number they need to get their free gift; only achieving a couple of referrals or none at all. They have contributed to the list of people signed up, yet have received nothing in return. It all balances out in the end. If it doesn’t, the number of referrals required per item goes up to reflect how savvy the customers are being, or how much revenue the site is receiving. In short they are not likely to lose out as long as the advertisers are happy, and as far as we can tell, they are.

And don’t the advertisers lose out when people cancel their free trial offers?

Possibly, if we were living in an ideal world, but people are people, and there’s a finely balanced pool out there who all behave differently. Do differently it’s almost predicable. Many will take out free trials and cancel them, many more will forget, and some will actually enjoy and use the service they signed up for. The companies who advertise get an opportunity to get you interested in their product, and if they win, they get a customer.

So, is affiliate marketing worth getting involved in?

Well, it’s up to you. If your time is worth big dollars, I would say, no. If however you have a bit time to spare and like to explore clever and challenging ways to generate referrals, then why not give it a go. You really haven’t got much to lose, have you?

The two main sites for UK, USA and Canada are Kudos Network and freebiejeebies Enjoy!

Go to www.thebestthings.co.uk to get more info about affiliate marketing and viral marketing tips, and how to start on the path to getting your free iPhone.