What is affiliate marketing? It is an internet based marketing practice where a business rewards their affiliates for each customer obtained. Basically, paying a commission for returned business. Some refer to affiliate marketing as a partnership between the website owner and the merchant.
However, small websites do not generate enough traffic to warranty affiliate marketing – so small websites join an affiliate program. The affiliate program is made up of several websites that make up an ad network which generates enough combined traffic to make them attractive to advertising merchants.
Many merchants use this method to increase their online sales. So how does it work? The merchants put their advertisement banners and / or links on websites. When a sale is generated by the merchant a specific website, website owner where the ad was posted will receive a benefit. This benefit varies based on the associated affiliate program.
Affiliate programs offer three basic types of payment arrangements:
1. Cost-per-sale or Pay-per-sale. With this arrangement the merchant pays the affiliate when the affiliate sends them a purchasing customer.
2. Cost-per-click or Pay-per click. With this arrangement the merchant pays the affiliate based on the number of visitors that click on the link to visit the merchant site whether or not something is purchased.
3. Cost-per-lead or Pay-per-lead. Merchants pay affiliates based on the number of visitors who up as leads or request information from the merchant website.
Finding the right affiliate program to place your website will take some investigation to determine which the best for you. The offers and cost associated with affiliate programs vary. Overall, utilizing affiliate marketing can be a good way to earn money from your website.