Is Affiliate Marketing?
Affiliate marketing has
many descriptions, yet all have the same
meaning. Affiliate marketing is a huge business piece on the Internet.
It is a cooperative effort between merchants and an
For many years now,
has proved to be a cost-efficient, measurable method of delivering
long-tern results. It has become famous for Internet sites who are
trying to make some extra or additional income for their site.
Every day, people get interested to affiliate marketing and want to
make money out of it. But in many cases, these new affiliates do not
fully understand the affiliate world and make costly mistakes. In other
words, affiliate marketing has often been misunderstood.
One of the common misconceptions that are being associated about
affiliate marketing is “selling”, though selling is
an important activity of affiliate marketing and the central function
of a business operation. Another is that affiliate marketing is
commonly linked with “advertising”. While the
importance of advertising in marketing a certain product is not to be
underestimated, the fact of the matter is, advertising like selling, is
merely a part of the many functions of marketing.
In affiliate marketing, an affiliate is compensated for every visitor,
subscriber and/or customer provided through his efforts. The said
compensation may be made based on a certain value for each visit. The
most attractive aspect of affiliate marketing from the
merchant’s viewpoint is that no payment is due to an
affiliate until results are appreciated.
Affiliate marketing is typically being run by affiliate networks and
this affiliate networks are composed of two functional bodies, the
group affiliates and the group merchants. Each has their special
function and role when it comes to affiliate marketing. The affiliate
network acts as a third party between the merchant and the associated
affiliates. The network provides the technology to deliver the
merchant’s campaigns and offers. The affiliate network also
collects commission fees from the merchant and then pays the affiliates
which are part of the program.
The merchant is any web site owner that wants or desires to take
advantage of performance based marketing. The benefits to the merchant
are many. First, the merchant maintains and operates the affiliate
program. If it would be extracted, the merchant needs to do their part
by researching interested affiliate websites to ensure that they are a
good fit for that particular website.
Finding a fit for their merchandise would be the key to more generated
income. The merchant has access to markets and customers without him
spending valuable time searching out. Banner ads on affiliate sites are
not distracting to the site user. It might produce interest for that
product and drive the consumer to the merchants’ website. It
is also the merchant who decides how much he is willing to pay for each
sale that results from a visitor sent from an affiliate.
The affiliate or the affiliate marketer also sees a lot of benefits.
The affiliate is a web site owner that promotes one or more merchants
and their affiliate programs. Affiliate marketing can generate a
full-time income for the affiliate. But this is not an easy task to
accomplish. The affiliate needs to have a better understanding with the
merchant what the commission will be, expected payment method and time
involved in the contract.
The affiliate has also the responsibility to stand for the merchandise
their user based would be most interested in. For example, if the site
has a user base of mainly stay-at-home mothers, then on-line job
openings such as surveys would be a good match for them. This group
would also appreciate direct links to children’s products and
informational sites. Merchandisers often provide targeted, best-seller
items and personal support to their affiliate. They often offer sales
promotions that will benefit the merchandiser as well as the affiliate.
Affiliate marketing is a great situation for both the marketer and the
affiliate. If they would work together, they can be an advantage to
both. Plus the fact that it seems to make sense, it is easy and
inexpensive way to start, and you can be up and running within a few
But there is one thing to consider, it is how to get traffic and make
your offer different than all others.
Needs in One