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There are various types of affiliate marketing. Basically it works like this: an affiliate (possibly you) refers a customer to a product/service and if that customer buys the product/service, the seller of the product/service compensates you. This is a commission. There are a numer of affiliate networks (ie: clickbank) where one can find products to promote and earn money from. Affiliate marketing is great because you simply promote and refer customers to other products and you get compensated eventhough you may not have a product/service to sell yourself.
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