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Affiliate Marketing Explained!
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Affiliate Marketing is a widespread method of promoting a website, in which an affiliate is rewarded for every visitor, subscriber and/or customer provided through his efforts. It is a modern variation of the practice of paying finder's-fees to individuals who introduce new clients to a business. Compensation may be made based on a certain value for each visit (Pay-per-click), registrant (Pay-per-lead), or a commission for each customer or sale (Pay-per-Sale).
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The most attractive aspect of affiliate marketing, from the merchant's viewpoint
is that no payment is due to an affiliate until results are realized.
E-commerce sites, such as Amazon.com run their own affiliate programs while
other e-commerce vendors use a third party services provided by
CommissionJunction.com, LinkShare.com, Shareasale.com and others to track traffic or
sales that are referred from affiliates. Some businesses credit a great part of
their growth and success to this marketing technique, and many online vendors
have used it to substantially increase their sales.
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Merchants who are considering adding an affiliate strategy to their online sales
channel should research the different technological solutions available to them.
Some types of affiliate management solutions include: standalone software,
hosted services, shopping carts with affiliate features, and third party
affiliate networks.
In its early days many internet users held negative opinions of affiliate
marketing due to the tendency of affiliates to use spam to promote the programs
in which they were enrolled. As the practice has matured, many affiliate
programs now prohibit their affiliates from spamming.
The source of this article is
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