Home > ArticlesWhat is Affiliate Marketing All About?
It is not new to you that there are millions of affiliate sites out there in the World Wide Web. Internet online marketing has been so on the rise since it was introduced more than 10 years ago. What is affiliate marketing? This is an agreement between two parties to promote and sell a product, where the owner of the product is the merchant and the other is an affiliate marketer. The merchant pays the affiliate marketer a commission for every closed sale he generates. The duties and responsibilities of a merchant are: The duties and responsibilities of an affiliate marketer are: What are the three methods of compensation? There are three types of compensation methods that are associated with affiliated marketing. The first type is Cost per Click (CPC) or Cost per Mil (CPM.) Basically, the affiliate earns by how many clicks the advertising on his/her site generates, or by just having the advert published on the website. But because of click fraud and many other questionable tactics, CPC is no longer the general form used for affiliate marketing. Second type of compensation is the CPA (Cost per Action). It is based on how much the advert generates interest by the clicker to actually buy or register at the advertised site. The third compensation method is based strictly on sales. In other words, an affiliate is paid if the clicker actually purchases something on the advertised site. Marketing of affiliate internet programs is a win-win situation for both the merchant and the affiliate. Each one has its own benefits and advantages. Bottom line is both parties have the opportunity to increase their income. © Orlando Racelis, All rights reserved. Resources: To know more about affiliate marketing, go to: http://affiliateinternetmaster.ws/index.php Please get your free e-books from here: http://affiliateinternetmaster.ws/FreeDownloads Submitted on Feb 27, 2009 |