Affiliate Marketing

• Its is a online marketing efforts in which business (Retailer or Whole seller) reward one or more affiliate for each visitor or customer by using different marketing efforts.
• It has four core players like Merchant, Network, Publisher and Customers.
• In affiliate different kind of strategies are used like Advertising which include SEO, SMM, E-mail Marketing and display advertisement.
  

Compensation Methods

Predominant compensation methods:

• Eighty percent of affiliate programs today use revenue sharing or cost per sale (CPS) as a compensation method.
• Nineteen percent use cost per action (CPA),
• Remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM).

Diminished compensation methods:

• Less than one percent of traditional affiliate marketing programs today use cost per click and cost per mille.
• Cost per mille requires only that the publisher make the advertising available on his website and display it to his visitors in order to receive a commission.
• Pay per click requires one additional step in the conversion process to generate revenue for the publisher: A visitor must not only be made aware of the advertisement, but must also click on the advertisement to visit the advertiser's website.

Performance marketing:

Affiliate marketing is also called "performance marketing", in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding targeted baselines.

The affiliate websites:

• Comparison shopping websites and directories
• Loyalty websites, typically characterized by providing a reward system for purchases via points back, cash back
• CRM sites that offer charitable donations
• Coupon and rebate websites that focus on sales promotions
• Content and niche market websites, including product review sites
• Personal websites (This type of website was the reason for the birth of affiliate marketing; however, such websites are almost reduced to complete irrelevance compared to the other types of affiliate websites.)
• Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website
• Shopping directories that list merchants by categories without providing coupons, price comparisons, or other features based on information that changes frequently, thus requiring continual updates.

How it works:

Starting up an affiliate business is very easy:

• Build a site, if you don't already have one.
• Sign up with a few profitable affiliate programs that are related to your site.
• Link to the affiliate programs from your site using your personal tracking links.
• Generate traffic to your site
• Make your visitors want to buy the products of the affiliate programs.

The most profitable affiliate markets:

According to our experience, the biggest paychecks are delivered to affiliates in the following affiliate markets:

• Poker
• Mortgage
• Education

Example

• SunshineRewards
• Popshop
• Shoping-bargains
  
• Webmerge
  
• Filedby