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What Is Affiliate Marketing?

When  you  need  a  hand  at  marketing  your  goods  online,  you   would  best  get  it  from  affiliate  marketing.  In  simple  terms,  this   involves  a  revenue-­‐sharing  venture  between  a  site  owner  and   an  online  merchant.  The  merchant’s  products  are  promoted   through  the  owner’s  site  by  placing  ads  and  links.


As  mentioned  earlier,  profits  are  shared  by  both  parties.  How   this  is  done  depends  on  the  agreed  upon  method.  They  may  use   one  of  three  ways.


Pay-­‐per-­‐click  –  In  this  arrangement,  a  payout  is  made  every   time  a  potential  customer  clicks  on  a  link  placed  on  the   site.  The  amount  that  site  owners  can  earn  here  depends   on  the  agreed-­‐upon  commission  by  both  parties.  This   amount  may  be  transferred  right  away  or  through  a   regular  schedule.


Pay-­‐per-­‐sale  –  This  time,  profits  are  shared  every  time  a   customer  makes  a  purchase  on  the  merchant’s  site   through  an  affiliate  link.  In  return,  an  affiliate  might  earn  a   commission  based  on  a  flat  rate  or  a  certain  percentage  of   the  product’s  price.


Pay-­‐per-­‐lead   –  Every  time  someone  registers  on  the   merchant’s  site  as  a  potential  customer,  affiliates  earn  a   certain  amount  with  this  type  of  deal. Marketing  through  affiliates  benefits  both  parties.  Merchants   do  not  really  have  to  do  anything  in  this  arrangement.  This  also   saves  money  since  they  do  not  have  to  pay  up  if  nothing  is  happening.


On  the  other  hand,  site  owners  could  use  their   revenues  to  maintain  their  site.  With  enough  effort,  some  may   even  work  as  full-­‐time  affiliate  marketers. Of  course  there  are  a  few  drawbacks  as  well.  For  instance,   merchants  have  to  be  careful  on  which  sites  to  market  their   product.  Affiliates  need  to  be  trustworthy  enough  not  to  drag   their  partners  with  bad  publicity. Commissions  that  are  too   small  could  also  lead  to  bad  business  relationship  between   merchant  and  affiliate.

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