Ever wondered why your favorite websites post links to other websites? Chances are they are part of an affiliate program. Affiliate programs have evolved considerably in the last decade, and enjoy an incredible amount of popularity among Internet users.
Also known as associate programs, their primary aim is to direct traffic from an affiliate website to the merchant site. The affiliate gets a fee in return if a sale takes place as a result. Affiliate programs are usually associated with Amazon, which has been using this Internet marketing strategy successfully since the late 1990's. However, other e-retailers like AutoWeb, PC Flowers & Gifts and EPage hold the earliest patents on affiliate programs.
The revenue generation model can work in more than one way. Affiliates are usually paid on the basis of sales generated, or on the number of visitors they have generated for the merchant site. Pay per lead works by getting affiliates to refer visitors with their details. These visitors then become leads for the merchant who contacts them directly. Pay per click was a popular basis earlier, but is virtually non-existent now owing to numerous click frauds. Another way is to pay the affiliate a fixed commission for simply putting up the merchant's banner ad on his site.
The biggest advantage of affiliate programs is that a website can participate in e-commerce without directly selling a product or service. For example, a blog on book reviews could specifically link to Amazon for featured books. This would allow a book-lover to read the review and also purchase it online. Amazon, in turn, would not have to worry about directly approaching this customer to sell books.
Affiliate programs are still a small proportion of online marketing strategies, since search engines and website syndication continue to dominate the scene. However, this form of marketing looks set to grow in a big way in the coming years.
Also known as associate programs, their primary aim is to direct traffic from an affiliate website to the merchant site. The affiliate gets a fee in return if a sale takes place as a result. Affiliate programs are usually associated with Amazon, which has been using this Internet marketing strategy successfully since the late 1990's. However, other e-retailers like AutoWeb, PC Flowers & Gifts and EPage hold the earliest patents on affiliate programs.
The revenue generation model can work in more than one way. Affiliates are usually paid on the basis of sales generated, or on the number of visitors they have generated for the merchant site. Pay per lead works by getting affiliates to refer visitors with their details. These visitors then become leads for the merchant who contacts them directly. Pay per click was a popular basis earlier, but is virtually non-existent now owing to numerous click frauds. Another way is to pay the affiliate a fixed commission for simply putting up the merchant's banner ad on his site.
The biggest advantage of affiliate programs is that a website can participate in e-commerce without directly selling a product or service. For example, a blog on book reviews could specifically link to Amazon for featured books. This would allow a book-lover to read the review and also purchase it online. Amazon, in turn, would not have to worry about directly approaching this customer to sell books.
Affiliate programs are still a small proportion of online marketing strategies, since search engines and website syndication continue to dominate the scene. However, this form of marketing looks set to grow in a big way in the coming years.
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