One large segment of Internet Marketing is related to Affiliate Marketing. For many this is maybe the easiest step to start earning some money on the Internet.
What is affiliate Marketing?
Affiliate marketing has many descriptions. Yet all have almost the same meaning. Affiliate marketing is a huge business segment on the Internet. It is a cooperative effort between merchants and an affiliate’s website. Affiliate marketing has proved to be a cost-efficient, measurable method of delivering long-tern results. It has become famous for Internet sites who are trying to make some extra or additional income for their site. Every day, people get interested to affiliate marketing and want to make money out of it. But in many cases, these new affiliates do not fully understand the affiliate world and make costly mistakes. In other words, affiliate marketing has often been misunderstood.
One of the common misconceptions that are being associated about affiliate marketing is “selling”, though selling is an important activity of affiliate marketing and the central function of a business operation. Another is that affiliate marketing is commonly linked with “advertising”. While the importance of advertising in marketing a certain product is not to be underestimated, the fact of the matter is, advertising like selling, is merely a part of the many functions of marketing.
In affiliate marketing, an affiliate is compensated for every visitor, subscriber and/or customer provided through his efforts. The said compensation may be made based on a certain value for each visit. Like independent sales agents, the attractive aspect of affiliate marketing from the merchant’s viewpoint that the cost is low and no payment is due to an affiliate until results are appreciated. So relative little risk for the merchant but its success also much depend on the support the merchants give to the affiliates.