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What is Affiliate Marketing

Affiliate Marketing is a way of promoting online business through affiliate programs and marketing that pay the affiliate (or publisher) a type of payment based on the amount of business their website brings the business company.

It’s a form of revenue sharing or commission based advertising. The term “affiliate marketing,” though, is often associated with network marketing or multi-level marketing and therefore many companies prefer to use the term “performance marketing”. Affiliate marketing is the most cost effective sort of marketing there is, and is actually incredibly efficient. For this reason, many companies (especially those that started in the early days of e-commerce) owe a tremendous amount to affiliate marketing (amazon.com is a good example) and it has now become normal for companies to include affiliate marketing in many of their plans.

The Advantages of Affiliate Marketing


Online merchants find affiliate marketing highly beneficial due to the fact that it presents little to no risk both for the merchant and the ‘affiliate.’ The way it works is that the affiliate earns a type of commission or set amount based on the number of sales the affiliate brings to the merchant, either through on-line links on the affiliates website - or through email, blogs, rss feeds and many other kinds of on-line communication. Some merchants (only about 2% of affiliate marketing) use a cost-per-click remuneration system, which simply means that the affiliate earns cash every time an internet searcher clicks on an advert on their site or email. However, due to fraudsters taking advantage of this method (creating ad-ware, sending spam, or useless indexing sites) this form of compensation is not preferred and becomes too dangerous for merchants to use.

Affiliate marketing also bears no cost on the merchant in the original set-up - in other words, it costs nothing to place advertising banners on affiliate’s sites, and there is only a cost if a lead or sale has been generated (which is advantageous for all.) Merchants also get to set the parameters, and decide on the incentive schemes. Thus, it is a very inexpensive (but highly efficient way) to grow a business.

The Different Types of Affiliate Marketing


1)Pay-per click systems essentially, the affiliate displays adverts on their site and is paid when a customer or internet user clicks on that website

2)RSS feeds or blogs - even personal sites can sit under this category. Blogging is fast becoming a staple form of marketing and promotion, and affiliate marketing partners well with this form of online communication

3)Comparison sites and shopping directories - such as review sites or legit advertising sites

4)Loyalty sites - this is when a reward system is in place via a cash back or points back system (or charitable donations)

5)Coupon sites that focus strictly on marketing and promotions

6)Email lists - legit email lists to subscribers of the affiliate’s website etc - NOT spam

7)A registration path - when a person registers with a specific site, be it for a newsletter or subscription, offers from other companies are represented and advertised

8)Networks - there are many affiliate marketing networks. Some even function on a multi-tier or multi-level marketing sort of set up.


Affiliate marketing is highly cost-effective, and in effect costs both the advertiser and the affiliate nothing, while having the potential of bringing in a very large form of income for both parties. While pay per click (or cost-per-click) mentioned above can present a risk to the advertiser, the cost-per-sale (CPS) system has very little or no risk at all for both parties, and is therefore preferred.

Om forfatteren

For more information about Affiliate Marketing and how to join an Affiliate program please visit: http://www.easycash4life.com/ To Your Success Annette Lode.

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