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What is Affiliate Marketing?

This is chapter 1, What is Affiliate Marketing ?, of Successful Affiliate Marketing for Merchants.

In temporary, I often describe affiliate advertising and marketing as the net equal of Avon.

Back once I was rising up, we had the Avon woman within the neighborhood. She would promote cosmetics door to door, and if she made a sale, she earned a fee.

It's so simple as that – when utilized on-line, individuals have Web websites the place they will show commercials, and in the event that they refer a transaction from their advertisements, they earn a fee.

Affiliate advertising and marketing is a reasonably easy idea, however individuals complicate it generally.

As far as a fast historical past of affiliate advertising and marketing, it's a bit of over ten years outdated in it's on-line kind. Lots of people attribute the idea to Jeff Bezos an Amazon.com, however CDNow really launched a primitive model of an affiliate program a yr or so earlier than Amazon.com.

So CDNow had been innovators, however Amazon.com actually popularized affiliate advertising and marketing, and so they deserve recognition there.

In phrases of defining an affiliate, it was merely a content material web site. But associates have developed drastically through the years, and nowadays an affiliate might be basically any technique used to market on-line. For occasion, associates are utilizing knowledge feeds, SEO, blogs, video, ppc search engines, and so on.

The affiliate program mannequin is usually utilized to considered one of three varieties: pay per sale (income share), pay per lead, or ppc. Some affiliate packages mix these fashions to kind a hybrid affiliate program.

People usually marvel what kind of corporations have affiliate packages. Well, the highest retail Web websites, ranked by {dollars} spent (excluding public sale websites, massive company purchases and journey) for the 2006 vacation season (Nov. 1 – Dec. 26) had been as follows, in line with comScore Networks:

  • Amazon.com
  • Dell.com
  • Yahoo.com
  • Walmart.com
  • Ticketmaster.com
  • JCPenney.com
  • Apple.com
  • Bestbuy.com
  • Victoriassecret.com
  • Circuitcity.com

Affiliate packages are everywhere in the checklist of high retail websites. But they’re additionally only a frequent amongst Mom and Pop shops on-line.

That mentioned, affiliate advertising and marketing is just not simple. It's not one thing the place you may merely throw cash at it and see nice outcomes. Rather a profitable affiliate program requires numerous issues, together with creativity, focus, effort, and cash.

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