Basic Things on Online Affiliated Marketing

Online Affiliate Marketing functions as revenue for sharing ventures between a website owner and a certain online merchant. The website owner places advertisements on his websites to either aid in selling the merchant’s products or simply send potential customers to the merchant’s website in exchange for a share of the profits grained through it.

Affiliate Marketing Program

Affiliate marketing programs are sometimes called an affiliate program; but can be sometimes referred to as a pay-for-performance program or associate program. Basically, an affiliate program is a marketing tool for the e-business that makes it function, which is called merchant or advertiser that functions as a source of revenue for the e-business that participates in it, which is called an affiliate, associate or publisher.

There are practically three ways in earning money through affiliate marketing:

1) Pay per Click or Cost-per-click affiliate programs:

Each time a potential customer leaves the affiliate website through a click on the link that leads to the merchant’s website, a certain amount of money is then deposited into the affiliate’s account. This amount is dependent on the amount of the commission.

2) Pay per Lead or Cost-per-lead affiliate programs:

The merchant gives the affiliate a fixed set amount depending on the visitors clicking on the link; this applies to this such as completing an online survey, registering at the site and other alternatives to it.

3) Pay per Sale or Cost-per-sale affiliate programs:

Every time a sale is made from advertising on the affiliate’s website, a certain percentage is given to the affiliate’s account.

The Amazon Story is practically the world’s largest bookstore that has one of the most successful examples of an affiliate program (which is called their associate program). Amazon currently has over 1 million affiliates, which basically means that over 1 million sites are actively promoting their products each single day. If you do the computations Amazon generates over 40% of its revenue through its affiliates program, this is over 3 billion dollars in revenue each year.

Affiliate Programs used as a Marketing Tool

The two major advantages to merchant:
1. being able to tie marketing effort directly to a lead or sales.
2. The merchant pays only for the acquired results.

The Advantages to affiliate:
1. Additional sources of revenue for affiliate who also sells products/services are gained
2. A primary source of revenue for affiliate/s who offers services or information

Here are two approaches for operating A Successful Affiliate Marketing:

1. Try to acquire a huge and affiliate membership. The Amazon associates programs have over 1 million members which are very much diverse:
- RVPart – Sells parts related to recreational vehicles and motor homes.
- Dilbert – Functions as a site for viewing cartoons, playing games, sending electronic greeting cards and so much more.
- Books for Managers – Is a site for business related reviews and lists of the current top-selling business-related books by Business week, the Wall Street Journal, The New York Times, USA Today, and other publications.

2. Try to acquire a smaller number of highly effective affiliates that possess a high volume of website traffic and offers web page content, products as well as services that are directly related to the merchant’s genre of products and services.

by, ThemeLib