Wednesday, December 27, 2006

Affiliate Marketing for beginners by Elisabeth kirsch

Over the last few years affiliate marketing has become an important channel to drive traffic to many prominent online companies' websites.

There are hardly any major ecommerce websites that do not have some sort of affiliate marketing program as part of their online marketing mix.

So if most brand leaders are running affiliate programmes and finding that affiliate marketing is a precious online sales resource that is accounting for a higher percentage of overall online sales year on year and affiliate marketing is obviously good for businesses because the business does not incur any marketing expense until a result is realised by the affiliate, then why are so many businesses missing out.

It may just be because like a lot of things to do with the internet many people do not quite understand how it works, so here is my explanation of affiliate marketing in a nutshell.

Affiliate marketing is a way of promoting online businesses where an affiliate is paid for every customer, sale or client provided to a business through his/her efforts. It is a new version of a finder's fee for the introduction of new clients to a business. Payment is usually based on a percentage of the profit made from the new business that the affiliate has sent to the agreed website, other forms of payment are based on a certain value for each visit Pay per click (payment based on a certain value for each visit), or each time an advert is viewed (CPM).

Compensation may be made based on a certain value for each visit (Pay per click), registrant (Pay per lead), or a commission for each customer or sale (Pay per sale), or any combination. Affiliate marketing is good for merchants because the merchant does not incur any marketing expense until a result is realised by the affiliate.
About the Author

Elisabeth Kirsch For more information on Affiliate Marketing visit the Affiliate Marketing section of http//:www.scusimedia.com

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