ffiliate marketing has many descriptions, yet all have the same meaning. Affiliate
marketing is a huge business piece on the Internet. It is a cooperative effort between
merchants and an affiliate’s website. For many years now, affiliate marketing has proved
to be a cost-efficient, measurable method of delivering long-tern results. It has become
famous for Internet sites who are trying to make some extra or additional income for their
site. Every day, people get interested to affiliate marketing and want to make money out of
it. But in many cases, these new affiliates do not fully understand the affiliate world and
make costly mistakes. In other words, affiliate marketing has often been misunderstood.
ne of the common misconceptions that are being associated about affiliate marketing
is “selling”, though selling is an important activity of affiliate marketing and the central
function of a business operation. Another is that affiliate marketing is commonly linked with
“advertising”. While the importance of advertising in marketing a certain product is not to be
underestimated, the fact of the matter is, advertising like selling, is merely a part of the many
functions of marketing.
n affiliate marketing, an affiliate is compensated for every visitor, subscriber and/or
customer provided through his efforts. The said compensation may be made based on a
certain value for each visit. The most attractive aspect of affiliate marketing from the
merchant’s viewpoint is that no payment is due to an affiliate until results are appreciated.
ffiliate marketing is typically being run by affiliate networks and this affiliate networks are
composed of two functional bodies, the group affiliates and the group merchants. Each
has their special function and role when it comes to affiliate marketing. The affiliate network
acts as a third party between the merchant and the associated affiliates. The network
provides the technology to deliver the merchant’s campaigns and offers. The affiliate network
also collects commission fees from the merchant and then pays the affiliates which are part
of the program.