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Building a Successful Online Business
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E-AFFILIATE MARKETING
Affiliate marketing is a revenue sharing partnership between a web merchant and one or more affiliates. The affiliate is paid a commission for referring clicks, leads or most often sales to the merchant. Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts.
  • Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization, paid search engine marketing, e-mail marketing, and in some sense display advertising.
  • Affiliate marketing is a favored web marketing strategy, as it can have a significant impact on increasing the amount of traffic to your site. It can be cost effective, and you can benefit from gaining links from established web sites and online marketers. Top affiliates, or super affiliates as they are sometimes referred to as, have spent years developing and promoting websites so are aware of all the tips and tricks to create an online presence.
  • An affiliate scheme helped an auction site grow to what it is today. The ebay in house partnership scheme was set up in the late 1990s and resulted in a massive increase of sign ups.
  • Many large travel companies rely on affiliate schemes to generate their revenue, and funding for price comparison sites is also derived from affiliate schemes. With many successful online companies using the power of affiliate marketing. it is a tool any serious online trader should implement.
 
What are the Affiliate Marketing Models

  • There are three main types of affiliate models, although different terms are used to describe them, they usually fall into these three categories.
  • Pay Per click also referred to as cost per click. You pay every time your link or banner is clicked on from the affiliate’s site. Mainly based on unique clicks but sometimes raw clicks are used to calculate the cost to you.
  • Pay per Sale also referred to cost per sale, or commission on sales. You only pay the affiliate if a sale or sign up has been made. This way you are never out of pocket which makes this model the most cost effective way of online marketing.
  • Pay per Lead also referred to as pay per action or pay per performance. Similar to pay per sale, except it is a step back in the sales process. If you are promoting a product or service that cannot be sold online (such as a company offering bespoke building work, or a mortgage advice service) and needs to have some form of face to face, or telephone contact before a sale, the affiliates are paid for generating the lead.
 
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