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Affiliate
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Author: ©Bruno Auger
Affiliate Marketing can be traced to the simple concept
of revenue sharing, which has existed long before the internet
even existed. However, in it's form today, Affiliate Marketing
began just about four years after the internet was born,
when CDNOW launched their "BuyWeb" program. This
was basically a way of doing click-through purchasing at
independent storefronts. It was a very successful model
and business venture, launching e-commerce into the business
mainstream. In fact, e-commerce companies like Amazon.com
owe their success to Affiliate Marketing, and many businesses
today include it in their business plans.
Basically,
there are three types of systems used in Affiliate Marketing.
The first is the classic CPC system (cost-per-click) which,
due to click fraud, spamming and other unethical techniques,
has become the less favorable model. CPC is when the affiliate
is paid for every visit to the merchant's website that has
come through the affiliate's website or efforts. It mostly
takes the form of banner advertising, but can also be done
through e-mail and other means.
Google's
AdSense can serve as an example of the CPC model although,
strictly speaking, because Google uses contextual advertising
(the banners or adverts are related to the affiliate's website
and content) it isn't really classified as CPC. Only 1%
of the market use this model these days.
80%
of the market use the CPS model, while 19% use the CPA model.
These two are basically the same, as the affiliate is only
paid a commission based on actual SALES (CPS) or ACTION
(CPA) based on their efforts. For instance, if a visitor
clicks on a banner on the affiliate's website that takes
them to the merchant's website, the affiliate receives no
commission unless the site visitor buys something, subscribes
or gets involved in some way.
For
this reason, many people confuse CPA and CPS for Multi-level
marketing (MLM.) While many multi-tier programs within Multi-level
marketing do use Affiliate Marketing, MLM is a type of business
model whereas Affiliate Marketing is a type of marketing
model. They are mutually exclusive.
Web
2.0 has brought a lot of influence into the way business
is run, since it has made communication much easier. Word-of-mouth
has always been the strongest form of advertising, and Affiliate
Marketing is basically a word-of-mouth sort of system. This
is one of the reasons why so many types of business and
e-commerce use Affiliate Marketing such as blogs,
RSS feeds, comparison shopping sites, directories, loyalty
sites, registration sites, rebate and promotion sites etc.
There are also large CPA networks on the net, and many sites
that use registration paths; in other words, if you register
on one site, you automatically register on other sites too,
and each site pays the other a form of commission.
Affiliate
Marketing is low-risk, especially for the merchant but also
for the affiliate. In fact, the CPA and CPS models can be
classified as 'no-risk' if set up correctly. For this, and
the reasons mentioned above, Affiliate Marketing has become
an incredibly efficient and favorable way of doing marketing,
and can be incredibly profitable for both the merchant and
the affiliate.
About
the Author: Author has been working on various
web promotional campaigns and posses knowledge on
the concepts of Affiliate Marketing. Earn Online Money
by Joining Afiliate Network as an Affiliate or as
Merchant. http://yourcashaffiliate.com
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