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If you want to earn extra income online, think clearly about the opportunities you have to choose from. You can start an online business while still keeping your old job and once your new venture begins to pay off, you can turn it into a full time occupation. One method people are beginning to see as profitable is with affiliate marketing on their own blog. Blogging is becoming a way of life for many people.

They will keep their personal diary online for the world to view and others will be topic specific writing daily or weekly musings about politics, religion and other timely subjects. Once a following exists, affiliate ads can be placed on your blog in order to cash in on the trend. Even Google offers programs where you can place ads on your site and the ads that magically appear are geared towards the subject matter of your blog.

Placing your own affiliate ads on your blog makes it more of a personal choice and allows you to bypass the ads from sites that you do not agree with. For example, if your blog is about raising children, then you probably do not want ads that are geared towards adults. Affiliations with sites selling childrens clothing, furniture or educational materials will probably be a better fit. If you have a successful blog, there are some companies willing to pay you to add your thoughts to their company blogs.

Paid blogging is beginning to offer big paydays to those who can add significant, thoughtful and provoking information, while remaining true to the company that pays you. If you choose the affiliate road, keep in mind that while larger retailers may make your site look more credible, those looking to buy from those sites typically just sign into them, bypassing your site completely.

It is better to find sites that offer niche products, filling a specific needs, as many of your visitors may have never heard of them before as they find them on your site. You can start a newsletter in order to earn extra income online. It can be about things happening in your neighborhood, your community or even about your favorite hobby. If you have a blog about model trains, for example, you may end up with a model train newsletter, signing people up to have it emailed to them on a regular basis.

Once it is established, paid advertising or affiliate advertising can help pay the bills and help you earn extra cash. Regardless of the direction your earning endeavor takes you, it should be something that you enjoy doing. If it something of a passing interest, as time goes on you will find your dedication and product quality will also diminish.

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From a website owner’s point of view, affiliate marketing can add to your income as well as improve your credibility among your visitors. Signing up for affiliate programs should involve as much thought as the types of information you offer on your site, whether you sell products or services or simply have a blog site.

For example, if you have a person blog concerning dogs or cats and you place affiliate links for a pet products company on your blog, you are more likely to earn sales commissions than of your blog site promotes vitamin sales. The products offered by affiliate companies should be related to the primary focus of your site.

With the number of affiliate marketing programs available, there is no doubt you can find an appropriate site with which to be affiliated. You will want to know ahead of time the commission structure and when payments can be expected to avoid disappointment in the future. Most companies will also keep you informed of any program changes, which would include changes to commission structure or other payment options that may affect your continued affiliation with them.

When you are working with companies as an affiliate, simply placing their link on your page does not end your involvement. Many offer seasonal merchandise or services and keeping your links up to date can make your website more credible to your visitors. If someone visits your site in March or April and you are still promoting free Christmas delivery, many will believe your site is outdated and may ignore your other links.

Many times companies will have sales offering coupons you can place on your site as links, but you need to constantly monitor the coupons for going out of date or for offering products or services that maybe you do not want to promote on your site. For example, if the focus of your site is for children’s education, you may not want to promote an adult oriented site or a gambling site. This can happen when some of the smaller sites lose their domain name and another company picks it up and promotes products other than what you were used to seeing.

It has happened where a company will go out of business and their name is bought by a gambling or a dating site and all links to that name now are pointed at the new site. If you are not keeping track of your affiliated sites you could unknowingly be promoting a site that goes against your primary business focus.

If you are going through an affiliate marketing corporation that manages the programs for many companies and one goes out of business, the links on your page will typically disappear. However, if you are affiliated with a company and their own program that goes out of business, the link may remain but will give your visitors an error message. Another indication that your site may be out of date.

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If you use affiliate programs to sell other people’s products on the Internet, I have some shocking news for you. You are most likely getting ripped off and you probable didn’t have a clue it was happening?

Don’t worry, you are not getting ripped off by the companies whose affiliate programs you belong too. As long as they pay you the money you earned, and pay you on time, then you have nothing to worry about with them.

What I’m talking about here are the unscrupulous, sneaky, “petty shoplifter” customers who are taking your hard-earned commissions from right under your nose and out of your pocket… and putting that money into THEIR pockets!

Again, I am not talking here about the professional thief. I am talking about the person who thinks, “Oh great, I think I’ll save myself $15.00, $30.00 or more. Why should I give that money to John or Janet (even though they did the work to tell me about the product in the first place) when I can simply plug in my own affiliate ID instead”.

Of course, the thieves don’t have to be an affiliate themselves; there are quite a few savvy people out on the Internet who are just ordinary Joes. These ordinary Joes know what an affiliate link looks like in the address bar and so just tend to erase everything after the main web address and go to the site directly.

By now, you can see how you could be losing hundreds or even thousands of dollars every year due to affiliate link hijackers and people that just simple bypasses your affiliate links.

However, all is not lost as you can easily protect your income from the thieves. As you may or may not be aware there are a few alternatives. You can purchase outright, software that will cloak your links that is very easy to use and can be used over and over again on numerous web sites and affiliate links. Secondly you can subscribe to one or two of the companies that are around that charge you an ongoing monthly fee. You usually find that you can add any amount of affiliate links for cloaking but only associate it with one main URL address, so if you have several web sites promoting different programs, it could become quite a monthly figure that you are paying out. And lastly, you could do absolutely nothing and just keep on losing your hard earned money to the thieves. In which case you are obviously making too much money and can afford to give it away!

Therefore I strongly suggest that if you are an affiliate promoting other’s products, to further explore the possibility of disguising your affiliate links and make even MORE MONEY.

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You have enough on your plate without adding something as time consuming as affiliate marketing. Right? Nevertheless adding affiliate programs to your online portfolio is a wise move.

The just released 2007 AffStat Affiliate Marketing Benchmark report showed that the number of affiliates online is declining. Bad news? Hardly. The same report also shows that affiliate conversion rates (customers who buy) has increased anywhere from 1.6 to 5 percent. In a nutshell that means less affiliate competition and more money.

Whether you start your own program or join one that belongs to someone else, affiliate marketing can pay huge dividends. If you decide to start your own program, you will gain a highly motivated sales force that will generate free advertising for your business. The risk is negligible because your affiliates only get paid when a transaction is complete. That is unless you work out an alternative payment method.

There are four ways to set up the payment structure.

Pay per click: the affiliate is paid each time a visitor to their website clicks on the advertisement and is taken to the main sales or sign up page.

Pay per impression: The affiliate earns a profit each time the advertisement is shown.

Pay per lead: A visitor not only clicks on the advertisement but also performs an additional action like filling out a form to receive more information about your products and services. According to business experts and the internet trend lines, this form of commission payment is expected to skyrocket before the year is out.

Pay per sale: Pretty self explanatory and the most common method of payment.

The key to making your affiliate marketing campaigns work is to find affiliates with experience, a high traffic website and a proven track record. The good thing about these kinds of affiliates is they do not necessarily have to understand the business they are promoting plus they are already motivated to make money.

Or you can do some homework and find a company related to your business but not in direct competition. By finding the right approach you may be able to persuade that company to share their target audience with you. Again just make sure you are not in competition.

Setting up your affiliate marketing program is a snap. The toughest part is deciding how you are going to pay your affiliates. As a suggestion, you should probably stick with the tried and true pay per sale if you are just starting out. However you decide, get started with your own affiliate program now. The benefits greatly outweigh the risks and can go along way to putting your business on autoprofit.

Daryl Campbell is an internet business owner and affiliate marketer. Get more free tips, tools, video coaching and up to the minute internet marketing information at http://winthemarket.com