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  • December 2008
  • November 2008

Affiliate marketing is a very wide field that includes most of the marketing principles that are done all around the internet. It is the most popular way to promote products and get them known to the customers all around the world while having a lot of websites to back up your products and increase the impact of your marketing campaign.

Let us not jump forward and get back to the beginning to know what affiliate marketing is and how this affiliate marketing works. And after that, you will be able to realize by yourself how the affiliate programs can be useful for you, whether you are a buyer or seller.

To be able to understand the process of affiliate marketing, we should first familiarize ourselves with some definitions and keywords used in this field. MERCHANT or SELLER: it is the website which has products to promote. THE AFFILIATE: it is the website which will include a link to the seller’s website on its web pages. AFFILIATE MARKETING PROGRAM: it is an agreement between the merchant and the affiliate website where the merchant agrees to pay a commission against a specific action committed by visitors who visit the affiliate web site and hit the link to the merchant’s website.

Let us browse through the possible actions and the related payment methods that would generate a commission to the affiliate marketing website. The first case is known as a (pay per sale) this case has a much known example which is the affiliate marketing of the amazon.com website. In this case the affiliate web site is only paid if the customer browsing his web site hit the link to the Amazon web site and about something from there in this case the affiliate web site is awarded a commission which is usually ranging anywhere between 10 -50 % in most of the cases and this is applied not only for Amazon but for all the affiliate marketing agreements depending on a pay per sale basis.

The second case is where the merchant website, the one selling the product , pays a commission to the affiliate marketing  when a customer who is browsing the affiliate marketing hits a link and browses through the merchant site. This is only enough for the affiliate to get paid. Of course in this case the compensation per hit will be lower than the previous case but the number of hits will dramatically increase.

The third case is a pay per lead. Consider it as a mid way between the two previous cases. You do not need the customer or the lead to purchase something in order to award the affiliate a commission. It simply requires the visitor to register with the merchant site instead. In this case, only browsing the merchant site is not enough for the affiliate website to be awarded a commission.

You can see here that whether you are a seller or a promoter, you will share a part of the profit against your efforts.

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