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Affiliate Marketing – Highly Cost Effective, Highly Efficient
The Internet has fast become an efficient and trusted way for companies to market and sell their product. One of the reasons for this has been the rise of “Affiliated Marketing” – which is when a website directs traffic to itself through adverts on other (usually related) websites. Affiliated marketing either pays the affiliate through a pay-per-click program (the affiliate receives money every time an advert is clicked) or a pay-per-sale program (the affiliate receives commission every time a posted advert on their site generates an actual sale or subscription.) Generally, the pay-per-sale program (also called cost-per-sale, or CPS) is the tried and trusted form of affiliate marketing used.
Affiliate marketing began just four years after the world wide web was launched, originally popularized by well known companies such as CDNOW or Amazon.com. Google’s Adsense is also a very well known type of affiliated marketing, but is not really considered as true affiliate marketing as the adverts usually centers around the theme of the website they are displayed (known more as contextual advertising.) Google does not also directly sell a specific product, but generates money in other ways.
Affiliate marketing is highly cost-effective, and in effect costs both the advertiser and the affiliate nothing, while having the potential of bringing in a very large form of income for both parties. While pay per click (or cost-per-click) mentioned above can present a risk to the advertiser, the cost-per-sale (CPS) system has very little or no risk at all for both parties, and is therefore preferred.
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Increasing Online Sales through Affiliate Marketing..
Original post on February 22, 2012
One of the most tried, trusted, and beneficial ways of increasing online sales through marketing and advertising is affiliate marketing. This is basically a revenue share sort of system, where an affiliate is given a form of commission from a merchant, based on how many sales the affiliate has generated through advertising on his/her site. Affiliate marketing began just four years after the world-wide web was launched, and many successful e-commerce sites owe much to this simple yet effective method.
There are three types of affiliate marketing methods of payment – eitherpay-per-click (generated by actual clicks or referrals to the merchant from the affiliate’s site), pay-per-action or pay-per-sale (very similar, in that the affiliate receives payment, either a fixed amount or commission, based on the sales or subscriptions that have come through referrals or adverts on the affiliate’s site.) The last two methods of payment are generally preferred by merchants, due to many fraudsters taking advantage of the click system and setting up sites with forced clicks, pop-ups, adware, spam, false advertising and many other “black hat” techniques.
Affiliate marketing is not limited to only display-adverts on an affiliate site, but also comes in the form of email, blogs, rss feeds, content and nichesites, loyalty sites, comparison sites or shopping directories, and other forms. It is an extremely low cost, but highly effective form of marketing and advertising, presenting little to no risk for both the merchant and the affiliate.
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The Advantages of Affiliate Marketing
Original post on February 22, 2012
The concept of revenue sharing has been around for quite a while, long before the internet. But the idea of Affiliate Marketing has taken it to new levels, and become a staple form of advertising and bringing in business for all types of e-commerce.
Online merchants find Affiliate Marketing, marketing highly advantageous due to the fact that it presents little to no risk both for the merchant and the ‘affiliate.’ The way it works is that the affiliate earns a type of commission or fixed amount based on the number of sales the affiliate brings to the merchant, either through on-line links on the affiliate website – or through email, blogs, rss feeds and many other kinds of on-line communication. Some merchants (only about 1% of Affiliate Marketing) use a cost-per-click (Now Know as Pay-Per-Click) remuneration system, which simply means that the affiliate earns every time an internet searcher clicks on an advert on their site or email. However, due to fraudsters taking advantage of this method (creating ad-ware, sending spam, or useless indexing sites) this form of remuneration is not preferred and becomes too risky for merchants to use.
Affiliate Marketing also bears no cost on the merchant in the original set-up – in other words, it costs nothing to place advertising banners on affiliate’s sites, and there is only a cost if a lead or sale has been generated (which is advantageous for all.) Merchants also get to set the parameters, and decide on the incentive schemes. Thus, it is a very inexpensive (but highly efficient way) to grow a business.
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The Different Types of Affiliate Marketing
Original post on February 20, 2012
Affiliate marketing is a broad term that refers to a sort of on-line revenue share scheme, involving advertising and selling. It dates back to late 1994, when many e-commerce sites started employing the system and finding that it produces fantastic results. Currently, affiliate marketing is actually a serious player within e-commerce strategy.
When an affiliate joins in with an e-commerce merchant of some sort (be it a subscription service, a shopping site etc…) payment is received through referrals done from the affiliate’s website – done through the following methods
1)Pay-per click systems basically, the affiliate displays adverts on their site and is paid when a customer or internet user clicks on that website
2)RSS feeds or blogs – even personal sites can sit under this category. Blogging is fast becoming a staple form of marketing and promotion, and affiliate marketing partners well with this form of online communication
3)Comparison sites and shopping directories – such as review sites or legit advertising sites
4)Loyalty sites – this is when a reward system is in place via a cash back or points back system (or charitable donations)
5)Coupon sites that focus strictly on marketing and promotions
6)Email lists – legit email lists to subscribers of the affiliate’s website etc – NOT spam
7)A registration path – when a person registers with a specific site, be it for a newsletter or subscription, offers from other companies are represented and advertised
8)Networks – there are many affiliate marketing networks. Some even function on a multi-tier or multi-level marketing sort of set up.
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Original post on February 20, 2012
Affiliate Marketing is a way of promoting online business through affiliate programs
and advertising that pay the affiliate (or publisher) a type of commission based on
the amount of business their website brings the merchant company.
It’s a form of revenue sharing or commission based advertising.
The term “affiliate marketing,” however, is often associated with network marketing or multi-level marketing
and therefore many companies prefer to use the term “performance marketing”.
Affiliate marketing is the most cost effective sort of marketing there is,
and is actually incredibly efficient. For this reason,
many companies (especially those that started in the early days of e-commerce) owe a tremendous amount
to affiliate marketing (amazon.com is a good example) and it has now become normal for companies to include
affiliate marketing in many of their plans.
There are three types of compensation methods that are associated with affiliated marketing.
The first type is Cost per Click (CPC) or Cost per Mil (CPM.)
Basically, the affiliate earns by how many clicks the advertising on hisher site generates,
or by just having the advert published on the website. But because of click fraud and many other questionable tactics,
CPC is no longer the general form used for affiliate marketing. Generally,
companies now either use CPA (Cost per Action) or CPS (Cost per Sale.)
The first is based on how much the advert generates interest by the clicker to actually buy or register
at the advertised site, the second is based strictly on sales. In other words,
an affiliate is paid if the clicker actually purchases something on the advertised site.
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