Affiliate Marketing Described

by DebGeorge on August 8, 2009

in Internet

Affiliate internet marketing is a way of promoting internet business thru affiliate marketing programs and advertising that pay the affiliate a sort of commission based on the quantity of business their internet site brings the merchant company.

It’s a form of revenue sharing or commission based advertising. Numerous companies wish to use the term “performance marketing”, however, because “affiliate marketing” is usually associated to multi-level or internet promotion. Affiliate marketing is the most inexpensive kind of selling there’s, and is actually incredibly efficient. Because of this, many firms ( particularly those that started in the early days of e-commerce ) owe an incredible vast amount to affiliate marketing (amazon.com is an fantastic nice example) and it has now become normal for firms to include affiliate marketing in many of their plans.

There are three types of compensation methods that are related to affiliated selling. First, there’s CPC (cost per click), or CPM (cost per mil). Essentially, the affiliate earns by how many clicks the advertising on his/her site generates, or by just having the advert published on the website. CPC isn’t often used for affiliate marketing, however, thanks to fraud and other controversial tactics. Sometimes, firms now either use CPA (Cost per Action) or CPS (Cost per Sale). The former is based on the quantity of folks performing an action (such as registration) generated by the ad, while the latter relies on the amount of sales generated. Suffice to point out, the clicker needs to buy something on the site for the affiliate to get paid.

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