Categorized | Affiliate Marketing

What Are Affiliates And Affiliate Marketing?

Let's say someone creates a new product and is looking for ways to promote it and advertise it, so they find people or companies that are willing to market this product for a cut of the profit. This is the definition of what an affiliate is in the world of internet marketing. So if you are a product owner or a publisher looking to make money, affiliate marketing c ould easily become one of the best ways for you to make that happen.

The first person to implement the concept of affiliate marketing online was a man named William J. Tobin back in 1989, and since then, this method of generating sales has grown significantly to the point of making billions of dollars every year.

Affiliates have existed for a long time, even way before the internet was created. They could be anyone that points other people to a product, and for this they receive a percentage of the earnings made from said product or service. There are many ways in which affiliates are scouted for business. Some companies have specialized in creating affiliate networks that provide a wide variety of products and services with specific percentages for the affiliates to earn. These networks allow the publisher and the advertiser to meet up and do business in a more practical way.

The advertiser will typically upload a series of banners and textual sales promotions for the publisher to choose from. They will also state the percentage of money that the publisher will earn from each sale made. In this case, the publisher is now affiliated to the advertiser and this is basically what an affiliate really is, a person or company that gets paid to publish someone else's products and services.

There are many ways in which affiliate marketing can be performed. One of the most common is the use of a system called pay per sale (PPS) also know as cost per sale (CPS). This means that the publisher will get paid according to the amount of sales that he manages to generate from the advertisements published in his blog or website. Then there is the cost per action (CPA) system, and this one rewards the publisher for a certain kind of action taken by the potential buyer, an action that usually brings this person much closer to purchasing a product or service, but not necessarily requiring a sale in order for the publisher to get a commission. For obvious reasons, the CPA missions are usually, if not always much lower than the PPS alerting percentages.

One of the oldest systems for affiliate marketing is the pay per click method that has become famous and widely known by Google and their AdSense business. This one only requires that the visitors click on the advertisement displayed on the publisher's website or blog. The amount of action or involvement that the potential costumer has with the product or service is of no relevance when it comes to PPC. They do have a very sophisticated system that protects them from people who try to get earnings by cheating and clicking their own ads.

There are also affiliate programs that allow for publishers to recruit even more people and earn a percentage from their sales. This has created many other marketing strategies such as referral and multi-tier marketing. Both are similar to affiliate marketing but not really the same thing, mainly because of the way they are presented and the requirements asked in order to join these programs.

The world of affiliate marketing is very complex and there is a lot of knowledge that is required in order to get the most out of it. You can earn a lot of money from this kind of business if you have the required experience to get into it.

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