What is Affiliate Marketing ?
Affiliate marketing is a marketing arrangement in which the online retailer pays commission to another website. The other website gets a commission for sales or traffic that it generates from its referrals.
In other words, it is a way that your website or blog earns commissions for promoting another person’s or company’s products. The seller pays you either for products that people buy or referrals. Referrals are visitors to your website that went to the seller’s website thanks to you. They got there by clicking on a link on your website.
Affiliate marketing – the Internet
Since the advent of the Internet, affiliate marketing has grown and changed dramatically. Online retailer Amazon.com popularized the practice. With Amazon, bloggers and websites direct links to an Amazon page and receive a fee if a referral results in a sale.
Reward Types
Here are the three main reward types that affiliate marketers use:
Pay-per-click: The affiliate directs a visitor to the seller’s website. The seller pays the affiliate each time this happens, irrespective of whether a sale occurs.
Pay-per-lead: The affiliate directs somebody to the seller’s website. This time, that person fills out a contact form. In other words, the seller now has their personal information. This person is now a ‘lead.’ Affiliates get money for each lead they generate. It is also possible that the lead filled in the form on the affiliate’s website.
Pay-per-sale: The seller pays a percentage of the sale price to the affiliate.