Affiliate Marketing is relationship between a merchant web owner and an affiliate marketing associate. The affiliate attracts business to the merchant web owner’s site by posting links that connect potential customers to the merchant site. The merchant then pays a commission to the affiliate web site based on the amount of business generated by the affiliate site. Although the majority of affiliate marketing involves monetary exchange, it can be as simple as one site offering links to another site and that site returning the favor. This helps generate traffic for both organizations.
Once the potential customer has been connected to the merchant’s site, the responsibility is no longer in the hands of the affiliate marketing associate, but in the hands of the website owner to persuade the potential customer to make a purchase. But the affiliate will be compensated for the referral of business by way of whatever is agreed upon prior to setting up their affiliate web marketing relationship.
There are three common ways in which affiliate marketing can occur:
1) Pay per click
2) Pay per sale
3) Pay per lead
In pay per click affiliate marketing, you pay your affiliate a pre-arranged amount every time a person clicks on your product or service through the affiliate’s website. Pay per sale business presents the affiliate with a fixed amount or a percentage of the total sales that were directed to you through your affiliate’s marketing website. Pay per lead would be a percentage paid to your affiliate for every potential customer that they brought to your website for future business.
Affiliate web marketing has a structure of revenue sharing that can be extremely beneficial for the web owner and the affiliate, especially if the product or service you are promoting is in demand. Once the structure is in place, there is a minimal amount of work that needs to be implemented to maintain it. Changing your website into an affiliate marketing site will make it work for you, allowing you to generate infinite amounts of income from your daily flow of traffic into and out of your site.
Ms. Career Girl
On mscareergirl.com there is a side column that says “We Recommend”. In this area there are several companies listed. If you click on the link you will be redirected to that website. This generates traffic to these websites which can generate leads and hopefully future customers and provides a source of revenue for mscareergirl.com that is dependent on the number of users that are redirected to the other websites.
There are two prospective benefits to be gained from a small business utilizing affiliate marketing:
1) If the small business was the merchant, they would be gaining business with relatively low advertising costs and attracting a higher volume of potential customers than otherwise possible.
2) If the small business was the affiliate, they would be gaining a profit from the traffic they generate for the merchant’s website.
Questions:
1) How often does affiliate marketing catch your attention? In other words, do you ever click on links that take you to another site?
2) Can you think of any reason why a company would use affiliate marketing other than receiving monetary compensation?
3) How do you think we could use affiliate marketing in our project?
4) What is a form of compensation we can offer alumni for participating in an affiliate marketing program with us?
Resources:
- http://www.articledashboard.com/Article/Examples-of-Affiliate-Marketing-for-Beginners/549189
- http://www.mscareergirl.com/connect/
- http://www.robmcnealy.com/affiliate-marketing-basics-for-small-business/
- http://www.youtube.com/watch?v=pR1iomH6tTg
- http://www.startupnation.com/business-articles/1311/1/affiliate-marketing-basics.asp
- http://www.affilorama.com/introduction/examples-of-affiliate-sites-how-are-they-making-money
- http://www.amnavigator.com/blog/2009/08/04/affiliate-websites-types-and-examples/
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