Affiliate Marketing - Introduction
What is Affiliate Marketing
Affiliate marketing is a method of promoting a business on the internet
by connecting buyers and sellers,
via a third part website, and rewarding the website owner
for introducing the customer.
Who Are the Affiliate Marketers
Publishers and Salespeople are referred to as affiliates. They pass their leads to the advertisers and merchants who are then regarded as the affiliate merchants.
There are several technological solutions for advertisers, merchants and companies who wish to use affiliate marketing as an additional strategy to their business. Common types of solutions include third party affiliate networks, hosted services, stand alone software, and shopping carts with affiliate features.
Benefits for an Affiliate Merchant
By implementing an affiliate program a merchant can automate most of his advertising; generat links, accept applications, reporting and the tracking of results.
Compensation of an Affiliate Marketer
Payment is based on performances. Just as a sales person receives commission for a sale, an affiliate marketer is paid either per visitor to the merchants website (pay per click), per registration (pay per lead), or per sale (pay per sales) or any combination. In some programs the affiliate may also be rewarded for all future sales made via his introduction.
Compensation schemes are as varied as the merchants that use affiliate programs. Depending on the company, the item that is being sold, and the value of the lead, commissions ranges anywhere from 1% to 20%
To capitalise on the groth of the internet, many merchants have built programs known as affiliate networks. This marketing technique has helped many businesses succeed and grow on the internet.
What you do
· Sign up to sell merchants products.
· Advertise these products, say write a review to attract visitors to your site.
· You generate referrals and sales to the merchant
· The company pays you for visitors (pay per click), registrations (pay per lead), sales (pay per sales) or combination.
What you do not need to do
· Since you are just advertising or helping to advertise a merchant's product or service, this is a business that you do not have to have a product of your own.
· Aside from your computer, phone lines and internet connection, you do not need anything else.
· No expenditure of capital, no overhead costs, no commuting needed.
· You have total control and a free reign on your choice of products to endorse.
· No inventories, shipping, freight, sales processing: the merchant does all those functions.
· No renting of office spaces. Your office is your home.
Brief History of Affiliate Programs
Affiliate marketing started in 1996 with Amazon.com when it launched its affiliates program. Today the company has 450,000 sites in its network.
The basic idea is for a small website owner to register with Amazon. The website owner then puts up various links, banners, and products on his website. When visitors to his site buy a book from Amazon, the website owner is paid a commission for the sale generated. Simple.
The strategy proved successful with Amazon becoming one of the largest booksellers on the web. Soon other companies created their own affiliate programs. Unfortunately it was soon spoiled by some merchants getting the customers but not paying their affiliates, with affiliates clicking on their own links to defraud those merchants offering a pay per click program, and affiliates sending spam email advertising, causing problems for the merchant.
Today, affiliate marketing has become a good marketing tool that is being used by companies, both large and small, to promote and grow their online business, and by affiliates who can concentrate on building their websites knowing that they will be paid from the commission cheques at the end of the month.
The Security Affiliates of National Banks (Johns University, Studies in the Social Sciences, 85th Ser, 1949, 3)
Published: 1983-03 Hardcover
List Price: £14.07
FOCUS AFFILIATES INC.: Labor Productivity Benchmarks and International Gap Analysis (Labor Productivity Series)
Published: October 31, 2000 Unbound
List Price: £3.16
Indian National Congress: Its Affiliates in South and East Asia
Published: 1986-12 Hardcover
List Price: £13.21
1986 Directory Affiliates and Offices of Japanese Firms in the USA and Canada
Published: 1986-07 Paperback
List Price: £45.94
NOBLE AFFILIATES INC.: International Competitive Benchmarks and Financial Gap Analysis (Financial Performance Series)
Published: October 31, 2000 Unbound
List Price: £12.00
NOBLE AFFILIATES INC.: Labor Productivity Benchmarks and International Gap Analysis (Labor Productivity Series)
Published: April 25, 2000 Unbound
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