The Nuts and Bolts of Affiliate Marketing – The Basics
Monday, August 17th, 2009Affiliate marketing is a type of marketing that takes place online where a business gives a small amount of money to a website it’s affiliated with for every transaction that comes to them as a direct result of the affiliate website’s efforts.
While many online retailers continue to shy away from this practice as an effective way to increase traffic to their sites, affiliates do play an ever-increasing role in the marketing strategies of a great many online businesses. In fact, a good deal of online retailers have adopted affiliate marketing because it rewards marketers only when they generate revenue. Furthermore, affiliate marketing often compliments the other more mainstream e-marketing practices such as search engine optimization, e-mail marketing and search engine marketing.
Indeed, affiliate marketing works best been used in conjunction parallel to these other popular online advertising methods: SEO, PPC Marketing and social networking. Sites that use Web 2.0 concepts, such as blogging, user communities and RSS feeds have found an even greater use for affiliate marketing practices.
Affiliate marketing networks tend to vary in structure. Most are one-tier and pay affiliates commission based on a hierarchy of partners and sub-partners. Some employ two-tier programs, but this is rare There are also far less requirements of becoming an affiliate, which separates them from the likes of multi-level-marketing (MLM) schemes.
In terms of affiliate revenue, it is commonplace for merchants to use the cost per sale (CPS) method. CPS works this way: if a customer visits an affiliate marketer’s website, clicks on a link sending them to the merchant’s site and then performs a transaction at the merchant’s site, the affiliate marketer is paid. Previously used methods like cost per mile currently account for less than one percent of the affiliate marketing compensation methods being used today
“Survival of the fittest” is the only real or effective regulating concept currently in place in the world of affiliate marketing. Much like the early days of the internet or of civilization itself, affiliate marketers often operate as rogue and singular practitioners which may account for the many failed attempts at creating an industry-wide standard operating procedure for affiliate marketers.
I believe that if anyone wants to make money online, they can try the route of affiliate marketing. I personally know many successful marketers who are affiliates so there is no reason why you cannot do it.
Affiliate Marketers often use services associated with Article Marketing because Unique Articles can drive massive amounts of visitors to the affiliates blog websites.