If you’re planning on earning money through the Internet, and yet you don’t have the resources to go big like some deal sites and online shopping portals, then you can always start small through what we call, affiliate marketing. Basically, affiliate marketing is a marketing practice where websites drive traffic to other websites. In layman’s term, affiliate marketing is when a smaller website drives traffic to a larger, more popular one and earns money in the process. How do they get paid? Well, there are many compensation methods which include revenue sharing, Pay Per Sale (PPS), Cost Per Action (CPA), or Cost Per Click (CPC).
Affiliate marketing is a form of online marketing that overlaps with other Internet marketing methods which may include display advertising, search engine optimization, email marketing campaigns and outsourced content development like blogs and articles. If you’re planning to enter affiliate marketing, it’s best to understand that there are four key players in this particular industry: the merchant (the owner of the website your driving traffic into), the network, the publisher (affiliate marketer) and the customer.
Many merchants prefer affiliate marketing because of the “pay per performance” concept which focuses on getting results first before any marketing expense is considered. In other words, when it comes to affiliate marketing, you only pay when you get results. This concept of giving incentives only when you get the results is the core of an efficient and effective affiliate marketing. Getting individuals and companies to advocate your site and increase online exposure is a solid marketing tool often overlooked by advertisers. Examples of sites practicing affiliate marketing include coupon and rebate websites, weblogs, email list affiliates as well as content and niche market websites.
Unlike the use of traditional advertising channels, affiliate marketing generates contacts and networks that are extremely valuable because they are derived from domains. Simple text links used in affiliate marketing can already help boost traffic to your website. This is especially helpful when you’re selling products and services because if your website can be found in more place or affiliate channels, chances are you’d have more customers dropping by your page. Simple.
Affiliate marketing definitely plays a vital role in the world of electronic retail. This method of rewarding affiliates to build more traffic and create a solid web presence is invaluable and can seep through channels which usually cannot be reached by traditional methods of advertising. File-sharing services, retail industries as well as the adult and gambling sectors heavily rely on affiliate marketing, and soon even more industries will consider harnessing the unique online tool as part of their marketing mix.
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