Here is the definition of affiliate marketing and why it has grown rapidly in popularity for vendors to promote their products online.
As an affiliate marketer you will be rewarded for each sale generated through your affiliate link or in some cases subscribers to the vendors website usually known as CPA (Cost Per Action). Essentially, this is the advanced version to the finder’s fee.
No commissions are paid to the affiliate unless there is a result such as a sale, making this a great option to online marketing for the vendor. It’s now common place to see e-commerce sites running their own form of affiliate marketing software and programs.
In saying that however many other e-commerce vendors choose to use a third-party service that will track the traffic and sales created by the affiliate.
What It All Means
To understand affiliate marketing better and how it has been the vehicle of success for many companies online and offline and the increase in revenue is usually 15-20% of a vendor’s online revenue. There is also the added benefit for the vendor of having many affiliate marketers linking to their websites talking about their products and services in forums and blogs which is actually the best form of advertising they can get and it all comes to them for free.
Affiliate marketing is usually only one level but as of late you can find some programs such as PPC Web Spy that allow different levels taking on the form of the network marketing vehicle. There are a number of affiliate marketing strategies including Two-Tier Marketing available that can be offered by online merchants.
A number of the solutions include your own software, online shopping carts that have affiliate features, hosted services, and third-party affiliate networks such as Clickbank, Commission Junction or ShareaSale . As the concept grows, many merchants opt to refine their terms and conditions to prohibit the affiliates from spamming or cookie stuffing and numerous other “Black Hat Marketing” practices.
What it is Not!
In the past email would be used to spam potential customers by affiliates in an effort to generate more sales and leads. This not only annoyed potential consumers, but it filled the Internet with computer-generated mail, which not only got the attention of the search engines but also damaged product reputations.
Many affiliates then got the idea to create large volumes of auto-generated web pages that are devoted to keywords and keyword phrases to target a specific product this was actually marketed by someone claiming to be an affiliate marketing guru. This permitted the search engines to index their sites for the very keywords and products they were selling.
After a number of months and many thousands of generated websites later this also started to fill the internet with what is called “junk sites” and was later known as “Black Hat” tactics however…
Google came to the rescue to remove these spam websites and created an algorithm called “Big Daddy” during February 2006 (and again in 2011 with Panda). This update allowed Google to remove a large quantity of duplicated content from the master search index and put them into what is known as the Supplemental Index.
This also means that now an affiliate marketer has to rotate and update content on a regular basis and to stay away as best they can from duplicate content to maintain a strong presence in the SERP’s.
So to understand the affiliate marketing definition the concept is responsible for creating a lot of new businesses across the globe and is expected to evolve greatly. It offers an affiliate the opportunity to hitch on to a company that is already well established in the market, and it becomes a win-win situation for every person involved.
It’s Easy To Understand And Follow Right?
As with any business venture it needs to be taken seriously, so as an affiliate you have a ready-made business that can return you many thousands of dollars with the right ideas,attitude and affiliate marketing strategies.
While the merchant can offer training in the way of articles, emails, banners and even YouTube video promotions as well as some advice, promoting the website and getting the required traffic is left up to the affiliate, and this means understanding the rules of the product promotion.
Hopefully this has given you some insight and understanding on the Affiliate Marketing Definition.