Thursday, January 12, 2006

SEM Times (Issue 6): What is Affiliate Marketing?

Dear Reader,

The next topic to learn about Online Marketing is “Affiliate Marketing”. Dictionary.com gives the following meaning of the word “Affiliate”:

To adopt or accept as a member, subordinate associate, or branch

Affiliate Marketing as the name suggests is the way through which your affiliate (or member) does the marketing (brings traffic to your shop). Affiliate refers to another website that has been accepted by you as a member.

How does it work?

1. Affiliate (another site) sends traffic to your site through links, banners etc.
2. Some of these visitors who come to your site take the desired action (buying or subscribing to your product/service). These visitors are being tracked.
3. For each successful transaction (e.g. sale or subscription), you pay your affiliate a pre-decided commission.

















It is comparable to “Franchisee Model” in the traditional world. Today, there are lots of tools available which help you set up, launch, promote and track your affiliate program.

Amazon.com is an example of world’s most successful affiliate marketing program. It does significant portion of its business through affiliate marketing. You would have thousands of sites with links to Amazon books. When you go through those links and purchase book(s) on Amazon, the owner of the website gets commission from Amazon.

Your inputs have been highly valuable and encouraging!

Happy Learning,
SEM Times

2 comments:

Blog Intro said...

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It Is Simple said...

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Regards
Mike
My affiliates marketing