The genuine step-child of internet marketing is affiliate marketing, an attempted and trusted method for creating sales and marketing websites or products online. Lots of e-commerce sites owe a lot to affiliate marketing techniques– particularly Amazon.com and CDNOW’s WebBuy system. Affiliate marketing is an extremely efficient method to create brand awareness and create leads and business.
Affiliate marketing encourages ‘affiliates’ to offer or promote a merchant’s products by methods of a profits share or commission system. In the early days of the web when affiliate marketing began (about late 1994) most merchants utilized a Cost-Per-Click system (known as CPC or CPM) where an affiliate made money from every click to the merchant’s site created from the affiliate’s website. Because of bad management and many fraudsters benefiting from this system in different ways, just about 1% of affiliate marketing is now done this way. 80% of affiliate marketing is now on a cost-per-sale basis, where the affiliate gets commission for each real SALE produced on the merchant’s site that is because of a recommendation from the affiliate– and the last 19% of affiliate marketing is on a cost-per-action basis, where the affiliate gets a revenue-share if the person referred from their website actually subscribes or registers with the merchant’s website.
Affiliate marketing is done through different types of strategies or publisher websites – blogs and RSS feeds becoming quite a predominant approach, along with shopping and comparison websites, loyalty sites and others.