Affiliate marketing is the popular concept of promoting products and services on the web sites. Earlier web service providers used to exchange links and content to promote their web sites. The promotions were meant for increasing the page rank and visibility of the web site on the Internet. As web sites took a commercial status, many web site owners started paying for the links and advertisements. The process got refined over years and today is being practiced as affiliate marketing.
In affiliate marketing, the web site owner or the affiliate promotes either the web site, products or services provided by the advertiser. The publisher or affiliate uses text links, content snippets endorsing the products or services of the advertiser, rich media advertising messages, etc. It is result oriented and the results may be predefined as an advertisement impression, sale generation, lead generation, or a click generated. The services are provided by affiliate networks and affiliate marketing agencies.
In affiliate marketing, website owner enters into an agreement with the advertiser. The agreement is provided as an affiliate program which is provided either by network or merchant himself. After signing up with the merchant, the affiliate accesses the promotional content provided by the merchant. He then places it on his own web site and thus promotes the advertiser.
Affiliate networks are the agencies that bind the affiliates with the merchants. They can be said to act as proponents of affiliate marketing process between publishers and advertisers. They are also the medium of exchange between publishers and advertisers and all communications and transactions take place through them.
Merchants and affiliate network, since they have to interact and coordinate with a large number of people. For this purpose a common platform is used. The solutions to this kind of requirement is provided by a software that is hosted on the web site of the network or merchant. This common platforms keeps affiliate and merchants linked with their activities and daily schedules. The solution also provides for tracking the activities and money earned by the affiliates.
Affiliate marketing is still evolving. The marketers and networks are experimenting with different tools and formats.
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