Affiliate Marketing – Internet Business Idea

Affiliate Marketing - Internet Business Idea

Affiliate Marketing - Internet Business Idea

A performance-based marketing, Affiliate Marketing promotes the rewarding of one or more affiliates, based on each customer brought about to the business by the sheer effort of the affiliate himself. This industry possesses four core members, primarily: the retailer, the network, the publisher, and finally, the customer. But throughout the years, with the increasing complexity of the markets, it had allowed the existence of a secondary tier of members, a few of which include: affiliate management agencies, super-affiliates, and certain specialized third party vendors.

To a certain degree, Affiliate Marketing is present with other methods of internet marketing, since most of the affiliates utilize traditional advertizing methods, like organic SEO, PPC, e-mail marketing, and in some cases, display advertising. Still, Affiliate Marketing should not be confused with Referral Marketing, even if they both use third parties to increase sales for the retailer. To differentiate one from the other, their main difference is that Affiliate Marketing relies solely on money for motivation, while Referral Marketing relies on trust and personal connections.

Frequently, Affiliate Marketing is largely ignored by Business advertisers, since Search Engines, e-mail, and web syndication are often more preferred, but despite this, Affiliate Marketing continues to play a very important role in online marketing strategies, especially today, since retailers are realizing that this strategy will not incur expenses unless they get a desirable result. As was said before, this strategy is performance-based.

As for compensation for affiliates, a rough estimate of 80% of affiliate programs today utilize revenue sharing or PPS as their way of compensation. 19% use CPA, and the rest use CPC or CPM.

To summarize, Affiliate Marketing, though its existence had already been for over a decade, still needs to grow in popularity. It’s actually not that complicated, with the potential for lucrative results, but its true potential is yet to be revealed and harnessed.

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