Affiliate marketing

Affiliate marketing development

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By using affiliate marketing you get more exposure with your products appearing on someone else's website and you reward affiliates for each visitor or customer brought in by their marketing efforts.

Affiliate marketing overlaps with other internet marketing programs because affiliates will use all types of internet marketing opportunities – search engine optimization, paid per click, display, email and more.

Around 80% of affiliate programs today use revenue sharing PPP (Pay per Performance) as the preferred payment method. In PPP you only pay the affiliate whenever a referral translates into an action. Every time a lead or sale is made (you or the affiliate program manager track the affiliate’s referrals) a commission or fixed fee is paid into the affiliate's account.

The other alternative is Pay per Click or Per Thousand. This is the same as PPP except that the affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from your site. Essentially this is the same as Google AdWords.

Affiliate marketing can also be layered. A single-tier affiliate marketing program only pays affiliates based on direct referrals. In multi-tier affiliate marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to you, but also on every traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation. In residual income affiliate marketing, the affiliate is paid whenever the customer he has referred returns to the site and purchase another product. Obviously, the more complex is the program the more complicated is the tracking.