Affiliate marketing is considered one of the most trusted, tried-and-true ways to increase on-line sales. Affiliate marketing is a marketing and advertising technique that is basically a revenue-share type of system. This is where an affiliate receives a commission from a merchant based on the amount of sales generated, or subscriptions sold, through advertising on the affiliate’s website.
Affiliate marketing began only four years ago after the launch of the World Wide Web. Many successful e-commerce sites have benefited from this simple, yet effective, method of advertising. Among those are amazon.com and CD-Now. Google’s Adsense is a form of affiliate marketing, but really is considered to be more like contextual advertising.
Affiliate marketing offers three types of programs that pay the affiliate (or advertiser). The first is the pay-per-click method. Payment is made when a user, or a referral to the merchant, actually clicks on an advertisement offered on the affiliate’s website. The other two methods are the pay-per-action and pay-per-sale types of programs. These are very similar in that the affiliate receives payment in either a fixed amount or a commission-based system. The amount received is based on the sales or subscriptions that the ads or referrals from the affiliate’s website have generated.
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