AFFILIATE
HOW TO SUCCEED


Affiliate

What Is It

Traditionally, the role of a salesman was to maximise his sales volume and generate new customers, for which he was rewarded accordingly.

Affiliate marketing is very similar, with the affiliate taking the role of the salesman. The main difference is that affiliate marketing is internet-based, and the affiliate is rewarded in terms of the number of visitors to the site he achieves and, accordingly, the number of customers generated.

In essence, affiliate marketing involves the use of the affiliate’s website to drive traffic to the website of the business he supports, where traffic relates to the number of visitors that view the website of that business.

How Does It Work

Revenue sharing, also known as cost per sale, is by far the most popular method by which as affiliate is rewarded. It has been suggested that around 70-80% of affiliates are paid by this method. The affiliate is paid, by the website business, an agreed percentage of the sales revenues generated by customers who have been referred, by the affiliate, as a result of his successful traffic management.

Another effective means of affiliate remuneration is called cost per action, in which the advertiser pays the affiliate for each specified action, such as submitting a form, purchasing a product. This method has been incorporated by Google in their Adsense advertising programme.

A less commonly used method of remuneration is cost per click in which the advertiser pays a specified sum of money each time a viewer clicks on one of their advertisements positioned on designated websites.

Some advertisers offer a programme that works on a multi-layer system which distributes commission by way of a referral system of sign ups. This system rewards a chain of affiliates who generate income for those higher up the chain. Such a structure forms the basis of network marketing, also known as multi-level marketing


Affiliate – How To Succeed


Peter Radford writes Articles with Websites on a wide range of subjects. Affiliate articles cover Historical Development, Compensation Methods, Websites, Other Issues.
Website has many more.
View his Website at: affiliate-how-to-succeed.com