Online affiliate marketing is a profit-sharing effort between a site owner and an online merchant. The site owner will place advertisements on their sites to help offer the merchant items or send leads to the merchant site, all in exchange for a portion of the revenue.
Affiliate Marketing Program
In some cases, an affiliate marketing program is called an affiliate program; however, it could also be described as an associate program or a pay-for-performance program. An affiliate program is a marketing tool for e-commerce that you run, called a merchant or marketer. It is a source of income for the e-business that participates in it, called an affiliate or partner or publisher.
There are three methods of making money through affiliate marketing:
Pay-per-click or cost-per-click affiliate programs - Every time a potential customer leaves the affiliate site by "clicking" on the link that results in the merchant's site, a certain amount of cash is transferred to the affiliate's account. This amount can be in dollars or cents depending on the item and the amount of the commission.
Pay by cost per lead or lead affiliate programs - Merchant pays the affiliate a flat fee for each visitor who clicks and performs an action on the merchant website, such as completing an online survey, signing up for the website, or opting to receive an email.
Pay-per-sale or cost-per-sale affiliate programs - Every time a sale is made due to marketing on the affiliate site, a portion or commission is transferred to the affiliate's account.
The Amazon Story
The world's most excellent bookstore has one of the most significant examples of an affiliate program (called its associate program). Amazon generates more than 40% of its income through its affiliate program. As another example (relatively modest in contrast), Zealand makes more than 50% of its profits using its special affiliate program.
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