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This is a very common way to promote offers. For example, you will often see a blog post with links to certain products or services. If the reader clicks through and makes a purchase, the blog owner will make a commission. These in-text links blend in with other content on your site and are a great way of promoting an offer within your content, without being over-the-top salesy with banners. 
The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser's website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect either a) signs the contract, or b) completes the purchase.
For beginners, it’s best to start with the basics so you don’t end up on spammy websites or being flagged for deceptive practices. First, get acquainted with the Federal Trade Commission’s guidelines for affiliate marketers. The original document is a bit heady, but there are blogs that have summaries of what to avoid. Second, vet each program fully. There can be a tendency to go after every affiliate program in your niche to make quick cash, but just make sure to be upfront with your readers and follow the rules. The last thing you want is to ruin your readers’ trust with scams.
Take advantage of marketing tools whenever possible. Many affiliate programs offer useful resources to their affiliates aimed at helping affiliates make more sales. These range from monthly newsletters highlighting upcoming sales, tips or affiliate case studies, Facebook Groups just for affiliates, private webinars explaining marketing strategies in depth and more. Ultimate Bundles does this exceptionally well.
If you are selling someone else’s product you can “sweeten the pot” by adding something that only your subscribers will get. For example, if they buy the affiliate course you are promoting, you’ll give them special access to a private Facebook group filled only with people who have purchased it through your link. If you are promoting some else’s retreat or weekend intensive, you can bundle a free hour or two of consulting after they attend the intensive or retreat. They are already on your list because they believe in you, so this makes them feel like they are getting special treatment for buying your affiliate product.
The implementation of affiliate marketing on the internet relies heavily on various techniques built into the design of many web-pages and websites, and the use of calls to external domains to track user actions (click tracking, Ad Sense) and to serve up content (advertising) to the user. Most of this activity adds time[citation needed] and is generally a nuisance to the casual web-surfer and is seen as visual clutter.[citation needed] Various countermeasures have evolved over time to prevent or eliminate the appearance of advertising when a web-page is rendered. Third party programs (Ad-Aware, Adblock Plus, Spybot, pop-up blockers, etc.) and particularly, the use of a comprehensive HOSTS file can effectively eliminate the visual clutter and the extra time and bandwidth needed to render many web pages. The use of specific entries in the HOSTS file to block these well-known and persistent marketing and click-tracking domains can also aid in reducing a system's exposure to malware by preventing the content of infected advertising or tracking servers to reach a user's web-browser.[citation needed]
The Internet is positively riddled with traffic generators. They range from low-quality autorefresh bots using proxies to appear as though they come from around the world, to sophisticated traffic exchange systems powered by real people and real advertising. Ideally, you’ll strike upon the most valuable of these networks when you’re searching, but there’s a few problems.
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