Many people make their first foray into online business with an affiliate home business. For most people, this is an excellent choice for a first online business.

Affiliate marketing is a "win/win" concept in which internet marketers pay you a commission for sales they make from your referrals. You don't need to maintain inventory, deal with customers, or even have your own web site (although it helps greatly) to be successful at affiliate marketing.

You don't need to have a product of your own to sell, because you are helping to promote someone else's products on commission. Affiliate marketing simply involves sending potential customers to the web sites of the companies you're affiliated with. Here's a great free affiliate marketing ebook to get you started on this in the right direction.

You can focus on just one or two programs, or join as many affiliate programs as you'd like - the sky's the limit. An affiliate home business is probably the quickest way to get a home business going with minimal cost.

Another point to consider is that understanding affiliate marketing is key to understanding online business in general. Why? Because you learn how to promote a web site, and how to get traffic. And when you're ready to launch your own product, you'll know how to train your own affiliates to help you sell it!

While affiliate home business is probably the easiest way to get started in online business, but it can also be a tough road to follow, because you are competing with hundreds, if not thousands, of other affiliates who are trying to sell the same product or products. On the other hand, if you are dedicated, and/or have a knack for writing good advertising copy, you can take advantage of the fact that only about 5% to 10% of the members of any affiliate program actually market the product successfully and make significant money.

Ironically, according to some sources, as many as 80% of the members of affiliate programs never even bother to post a link to the product they are allegedly promoting. The competition is not as stiff as the numbers might imply.

Most affiliate programs are FREE to join, and you simply help the merchant get visitors to his or her site. If visitors you have sent make a purchase, you are paid a commission, often in the range of 20% to as much as 50%. You can generate these referrals by word of mouth, permission e-mail, newsletter and Pay-Per-Click Search Engine advertising, or by placing banners or links on your own or someone else's web pages.

Your unique affiliate ID code issued by the affiliate manager allows tracking of your referrals, so you get credit when they buy something. Some programs also pay a smaller commission on sales made through affiliates whom you have recruited, giving you a chance to earn residual income from your referrals. Each affiliate program has its own rules, which are outlined in the affiliate program agreement or the informational pages maintained by the affiliate manager.

To learn more review our affiliate marketing FAQ.

Click here for a list of some affiliate home business ideas.