4:43 PM

What is Affiliate Marketing?

Posted by Muhammad Farooq

Affiliate Marketing is a revenue sharing venture between a website owner and an online merchant. The website owner will place advertisements on his websites to either help sell the merchant's products or to send potential customers to the merchant's website, all in exchange for a share of the profits.

There are three ways to earn money through affiliate marketing:

Pay Per Click
Every time a potential customer leaves the affiliate website by "clicking" on the link leading to the merchant's website, a certain amount of money is deposited in the affiliate's account. This amount can be pennies or dollars depending on the product and amount of the commission.

Pay Per Sale
Every time a sale is made as a result of advertising on the affiliate's website, a percentage, or commission, is deposited into the affiliate's account.

Pay Per Lead
Every time a potential client registers at the merchant's website as a result of the advertisement on the affiliate's account, a previously determined amount is deposited into the affiliate's account.

For many website owners, this is a great way to earn some extra money without actually having to "do" anything. All it involves is placing an ad on the affiliate's website. There's no selling or promotion of any kind. The affiliate can just sit back and wait for the profits to roll in.

It's also beneficial to the merchant. By placing affiliate marketing advertising on websites all over the Internet, he has free advertising and doesn't need to do much selling on his own. The more websites a merchant is affiliated with, the more exposure his products get, and all he has to do is allow ads for his products to appear on someone else's website.

While affiliate marketing has its benefits, there are also a few cons. For instance, the merchant has to share the profits with an outside party. If an affiliate uses unsavory means to bring customers to his website and sell the merchant's products, the merchant will also have to contend with doing a little damage control on his reputation.

The affiliate has to do thorough research on the merchant before agreeing to affiliation. To not do so can mean ending up with a merchant who refuses to pay commission fees or packs up his business and moves on without informing any of his affiliates. This is rare, however, and most merchants and affiliates have a pleasant and profitable business arrangement.

It's important to choose wisely. In some cases, an ad can be placed on an affiliate's website for months before a potential customer "clicks" or purchases something. If the commission is only pennies, this can lead to a frustrating relationship. Both the affiliate and the merchant are well advised to ensure the relationship will be mutually beneficial.

Affiliate marketing is considered one of the best ways to earn money online. If this is an avenue you wish to pursue, you'd be well advised to research each merchant thoroughly. After that, there's not much else to do except wait for the profits to roll in!

1:26 AM

What is Forex Trading ?

Posted by Muhammad Farooq


The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:

24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.



The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.