Affiliate Marketing is a modern business today. Anyone can do earn money with the proper knowledge and skills. But what is affiliate marketing and how does it work?
What is Affiliate Marketing and How Does It Work?
What is Affiliate Marketing?
Affiliate marketing is a type of business in which a company rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts. It is, therefore, performance-based marketing, which means that your income will be based on your performance’s result.
There are Four (4) Core Players of the Affiliate Marketing Industry.
1. The Merchant is also known as retailer, brand or advertiser.
2. The Network which takes care of all the affiliate offers and payments.
3. The Publisher which also known and refers to the affiliate.
4. The Customer is the ender user of the product or services.
The affiliate marketing industry has evolved in complexity, which has resulted in the creation and emergence of a secondary tier of the core players, such as affiliate management agencies, specialized third party vendors and super-affiliates.
Affiliate marketing coincides partially with other Internet marketing methods because affiliates normally use regular advertising methods – such as SEO (Organic search engine optimization), paid search engine marketing (Pay Per Click = PPC), content marketing, e-mail marketing and display advertising, as well as publishing products/services reviews.
Affiliate marketing on the internet originated from the concept of Revenue Sharing – Paying Commission for referral business. In November 1994, almost 4 years after the birth of the World Wide Web, the principle of revenue share principles was converted to mainstream e-commerce.