Parasite hosting is an old online marketing tactic that is alive and well. It takes advantage of search engines placing ranking emphasis on older, established domains. Google loves older domains, especially ones with thousands of links pointing towards them.
A savvy marketer will place a review page onto an older domain and with only marginal marketing efforts his or her parasite page will rank for the chosen keywords very quickly. Although parasite hosting frustrates a lot of companies who try very hard to market their sites, it's a quick way for the little guy trying to make a buck with online marketing.
Parasite hosting takes advantage of the semi-new term "domain trust". Essentially, the older your domain, the more Google likes it, and the higher it will rank for practically any term. I have a few domains that were originally registered in 1997 and 1998, and I can honestly say "trust rank" is very real. I can place a single page on those domains and with just a handful of back links, they will begin ranking for the keywords I choose.
The easiest way to promote any product as an affiliate marketer without spending money on advertising is to use parasite hosting. Although there are countless sites to use for your parasite hosting, the most popular right now is Squidoo.
At the time of this writing, according to Yahoo site explorer, Squidoo has 270,000 back links and over 4,000,000 indexed pages (and we all know there are significantly more back links than what search engines reveal).
So, can you imagine making a new website and trying to compete with a parasite page on a domain that already has 270,000 back links pointing towards it? It would be very tough to do, but it certainly isn't impossible, and that doesn't mean you can't rank in the top ten results. It just means that you have your work cut out for you.
If you want to try parasite hosting, I would suggest you create at least five lenses at Squidoo about the product you want to promote. Your next step would be to establish back links pointing to these lenses with the proper anchor text for the keywords of your choice. I would recommend at least a dozen social bookmarks and perhaps three or four articles distributed to a few dozen article directories.
The only downfall with parasite hosting is you do not own the domain. If the website ever shuts down, you will lose your hard work, but that's the risk you take when working with this type of marketing. I believe the risk is definitely worth the reward, especially when you don't have to work so hard at marketing when compared to building a brand new website.
Before you head over to Squidoo and start creating lenses, you should do some research and find a solid product to promote. The easiest way to get started promoting products is to sign up at ClickBank and create a user account. After you've signed up, take a look through their available products in the marketplace.
Remember, the best products to promote will be in one of three categories: health, relationships, or finance. Although you can make money in other niches, these three are the power markets that will always have an ever-increasing customer base. Any marketing work that you perform in these categories will never be lost because these niches will remain strong as long as the human race exists!
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