An Overview Of Affiliate Marketing – The Basics

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Affiliate marketing is an online marketing practice where a business pays a fee to one of more affiliate websites for each unique visitor they attract to the business as a direct result of the affiliate website’s efforts.

While a great deal of merchants still downplay this strategy as a legitimate marketing strategy, affiliates do play an ever-increasing role in the marketing strategies of a great many online businesses.  The truth is, many e-tailers have embraced affiliate marketing because of the reduced financial risk involved.  Also, affiliate marketing works alongside the other more high-profile online marketing methods such as SEO, bookmarking and search engine marketing.

Here’s something for you to know, affiliate marketing is at its most effective when used strategically alongside these other popular online advertising methods: bookmarking, Google Adwords and social networking.  Sites that use Web 2.0 concepts, such as blogging, user communities and RSS feeds have found success with integrating affiliate marketing practices in these areas as well.

The structure of affiliate marketing networks varies.  The majority are structured in a single tier and pay commission based on where a site sits within a predetermined hierarchy.  Very few use two-tier programs  Unlike multi-level-marketing (MLM) or network marketing programs, there are also very few requirements to become an affiliate.

Currently, cost per sale (CPS) is the most favored method.  In a nutshell: if a merchant receives a sale as a direct result of a customer clicking on a link at an affiliate’s site, the affiliate marketer is compensated.  Previously used methods like cost per mile currently account for less than one percent of the affiliate marketing compensation methods being used today

Currently a self-regulated marketplace, affiliate marketing is often considered to be run by those on the fringes of online marketing.  Those affiliate marketers who do well work as homesteaders much like their predecessors in the “Wild Wild West” which may account for the many failed attempts at creating an industry-wide school of best practice for affiliate marketers.

As a conclusion, affiliate marketing is still a great way for anyone who is interested in making money online. Many people have made money in affiliate marketing so I believe that you can also do it.

Affiliate Marketers often use tools associated with Article Marketing because Unique Articles can create massive amounts of traffic to the affiliates review websites.

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