The concept of revenue sharing has been around for quite a
while long before the internet. But the idea of affiliate
marketing has taken it to new levels, and become a staple
form of advertising and bringing in business for all types
of e-commerce.
Online merchants find affiliate marketing highly advantageous
due to the fact that it presents little to no risk both for the
merchant and the ‘affiliate. The way it works is that the
affiliate earns a type of commission or fixed amount based on
the number of sales the affiliate brings to the merchant, either
through on-line links on the affiliates website or through
email, blogs, rss feeds and many other kinds of on-line
communication.Some merchants (only about 1% of
affiliate marketing) use a cost-per-click remuneration system,
which simply means that the affiliate earns every time an
internet searcher clicks on an advert on their site or email.
However, due to fraudsters taking advantage of this method
(creating ad-ware, sending spam, or useless indexing sites)
this form of remuneration is not preferred and becomes too
risky for merchants to use.
Affiliate marketing also bears no cost on the merchant in the
original set-up in other words, it costs nothing to place
advertising banners on affiliate’s sites, and there is only
a cost if a lead or sale has been generated
(which is advantageous for all.)
Merchants also get to set the parameters, and decide on the
incentive schemes. Thus, it is a very inexpensive
(but highly efficient way) to grow a business.
To Your Success Journey
Willard Solomon
editor/publisher
http://wsmarketingnews.com
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