Affiliate marketing is an online marketing strategy to promote and sell a product or service by using existing traffic of hundreds of other relevant websites and directing their customer base to a website or in particular boosting up sales.
For instance, a website that provides information on automobiles can partner (become an affiliate) with various automobile component manufacturers to facilitate the sales of their products. The sales through the website can be done either by posting the banners on the site for their product or providing a text link to their product section or any other form that can help customers to reach to their website and buy that particular product.
Each sale facilitated through the website is tracked through the affiliate ID, which an affiliate receives when he registers for any affiliate program. He can earn commission for facilitating sales or just for sending traffic. The commissions are calculated on various methods depending upon the agreement between product seller (advertiser) and website owner (publisher). Some of the popular methods on the basis of which affiliate are paid are: pay-per-click, pay-per lead, cost per activity and pay per sale.
It can be the most effective money-making tool for people who want to reap huge dividends in online businesses from advertisements, banners and other forms of promotion.
Affiliation programs bring profit to both advertises and publishers. Publishers can earn commission from every visit, subscription; customer or sale done from their site. Similarly, advertisers can enhance their businesses by increasing brand visibility and expanding their customer base.
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