Defining Affiliate Marketing
Most people would define affiliate marketing as a way to promote an online business using advertising. affiliate programs pay affiliates (also known as publishers) based on how much business they bring to the merchant.
affiliate marketing is a form of commission or revenue sharing advertising. You should know that the words ‘affiliate marketing’ are sometimes associated with Multi-Level Marketing (MLM) or network marketing so many merchants opt to use ‘performance marketing’ instead. It doesn’t matter if you call it performance marketing or affiliate marketing, it is considered to be the most cost effective and efficient marketing method. Many companies that started when e-commerce was a brand new idea attribute a large share of their success to affiliate marketing. Amazon.com is a prime example of successful affiliate marketing and most companies now include affiliate marketing as part of their marketing strategy.
There are three distinctive methods of compensating affiliates using affiliate marketing. Cost-per-Click (CPC) or Cost-per-Mil (CPM) are methods is which an affiliate earns income when a visitor clicks on an ad or a link or when an ad appears on the affiliate site. However, because of several cases of click fraud and countless other questionable schemes, CPC is not a popular form of affiliate marketing anymore. Most merchants now use Cost-per-Action (CPA) or Cost-per-Sale (CPS). An affiliate earns income from CPA when a visitor clicks on a link to the merchant’s site then buys or registers with the merchant. With CPS, an affiliate gets paid when the visitor clicks on an ad for the merchant’s site and this visitor then buys products or services from the merchant. Basically, the visitor needs to spend money in order for the affiliate to make money.
By: Daniel Waser
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Daniel Waser is a full time affiliate marketer who makes a living online from the comfort of his home. Are You Ready for a Quick Raid on the Internet’s Biggest Hidden Cash Mountain? Check out Affiliate Payload and read a honest Affiliate Payload Review
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