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Wednesday, 30 January 2008 |
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By Bruno Auger
 Increasingly, Affiliate Marketing has become an integrated part of company's business plans. Successful e-commerce companies like Amazon and CDNow (through their BuyWeb programme) owe their success to this simple, yet incredibly effective, marketing model.
What Is Affiliate Marketing?
In its most basic form, Affiliate Marketing is a form of revenue share where the affiliate (or publisher) is paid a commission based on visitors, sales, subscriptions or registrations that have come to the merchant through the affiliate's efforts.
How does Affiliate Marketing work?
Google's AdSense is a very well known form of Affiliate Marketing, and serves as a good example of how it works. Every time you or I click on a Google advert at a site, the site owner is paid a set amount of money for the click. This is known as a Cost-Per-Click model (CPC.) However, Google's Affiliate Marketing model is unique because it is based on contextual advertising. Every banner or advert is based on the affiliate's website content. This, and the fact that Google monitors the clicks, has made CPC work very well for Google.
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Last Updated ( Wednesday, 30 January 2008 )
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