Long before the internet was born, the concept of revenue sharing existed to benefit advertisers and merchants alike. The internet, though, and the idea of affiliate marketing, has taken it a step further into the world of big business. Affiliate marketing has become a tried-and-true method of advertising and an efficient sales technique for all types of e-commerce.
Affiliate marketing is highly advantageous to on-line merchants because there is very little, or no risk at all, for either the affiliate or the merchant. What happens with affiliate marketing is that the affiliate earns a type of commission or a fixed dollar amount based on the number of completed sales or subscriptions that the affiliate brings to the merchant. These sales or subscriptions can be brought about by on-line linking from the affiliate’s website, or through e-mail advertising, blogs, RSS feeds or other types of on-line communications.
About 1% of merchants that use the affiliate marketing system use a cost-per-click remuneration system. This means that the affiliate earns a fixed amount each time an internet searcher clicks on an advertisement offered on the affiliate’s site or on-line communication. This method is a little more risky for the merchant as there may be fraudsters that take advantage of the system. Fraudsters may create ad-ware, send spam (which is a frowned-upon practice of sending unsolicited e-mail advertising), use useless indexing sites, set up adware, or set up sites with forced clicks. The cost-per-click method sometimes becomes too risky for merchants to use.
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Have you heard of affiliate marketing but don’t know exactly what it is? Affiliate marketing is a way of promoting business on-line through affiliate programs and advertising that pay the affiliate (or ad publisher) a type of commission based on the amount of business their website brings the merchant company.