Affiliate marketing refers to a kind of Internet-based marketing system where a merchant allows individual marketers to advertise for them. The marketing efforts of the affiliate marketer attract visitors and customers for the merchant. Affiliates may use any kind of advertising method approved by the merchant.
Merchants provide articles, links and graphics to use for advertising to market their website. They also provide other types of marketing materials including special landing pages and pre-approved sales copy. Without the proper marketing materials, affiliate marketers would be fighting a losing battle.
Affiliate merchants create affiliate programs for a variety of reasons. More programs are developed on a daily basis. Merchants are always on the lookout for innovative ways to market and sell their products.
Affiliate Marketers Increase Business
Affiliate programs often cause increases in page rank, link popularity, visitors and sales. Each marketer utilized by the merchant company has the potential to create another sale. Affiliate marketing has become one of the biggest rages in online marketing.
Affiliate Marketing has grown and developed through the years now from the time of its inception. Marketing reports indicate that the revenue earned through affiliate marketing programs for the year 2006 alone in the United Kingdom was 2.16 billion pounds. An astounding $6.5 billion was earned by marketers in the United States.
Currently the most active business areas which use affiliate marketing are the retail, gambling and adult sectors. However the travel, electronics and finance sectors are also introducing affiliate marketing methods into their online marketing strategies. Companies may choose to make use of existing affiliate marketing models or create new programs that better suit their needs.
The usual method of compensation is commission. The Cost per Sale or Cost per Action methods support a system of paying for performance. Cost per Click or Cost per Mille programs pay for clicks to the website, or traffic.
The Cost per Sale method refers to the type of program in which the merchant pays the marketer a commission based on the amount of each sale they make. The marketer is provided an affiliate code that tracks each time their links are clicked. The same code allows merchants to track when sales are made and how much commission is due the marketer.
The Cost per Action method also more or less works on similar standards. The visitor clicks the marketer's affiliate link and visits the merchant website. The marketer gets paid based on a specific action the merchant requires. Newsletter sign-up is a very popular Cost per Action program.
The Cost per Click method was the biggest trend in affiliate marketing in previous years. Merchants would pay for each click of a link simply because it got another viewer to their website. Unfortunately some uncouth marketers discovered ways to manipulate the system and create fraudulent clicks. Merchants began losing money and most discontinued a pay per click option from their marketing strategy.
Successful Affiliate Marketing
Today both merchants and marketers alike realize that affiliate marketing programs work to the benefit of both parties. These programs provide merchants a method to advertise their products and services at a low cost. In turn they provide marketers a way to earn profits online and build their own business based on the products of other companies.
The attitude of both merchants and marketers towards affiliate marketing has gone up. Affiliate marketing is not just a secondary mode of earning money any more. Many successful affiliate marketing businesses have been created over the years.
Success in affiliate marketing lies in the hands of merchants and marketers alike. The merchant company provides the product and promotional materials. Promotional tools properly used by the affiliate marketer generate income for the merchant. The merchant pays a small commission per product sold. Affiliate marketing programs have created a win-win situation for each partner involved.
Jim Slader manages the affiliate program at Article Marketer, the largest article distribution service on the Internet. Earn commissions on a product that virtually sells itself; become an Article Marketer Affiliate today. Learn more about Article MarketerAffiliate Support here.