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Affiliate Marketing - History and Overview

Aug 20, 2008
Affiliate marketing is a great way to market for any business, and is predominantly used by Internet marketing companies. In this marketing technique, affiliate companies are compensated for directing some of their customers to their affiliate brand's website, which promotes the sales of the affiliate brand. This marketing strategy is extremely effective and can be used in a variety of ways to promote sales and increase compensation for companies involved. It is important for people to understand how affiliate marketing works, especially if they are going into some kind of marketing career.

History

Affiliate marketing started being utilized as a practice in the mid 1990s. This was of course right around the time of the birth of the Internet, therefore it has been around since the Internet was developed. It has become one of the most popular marketing schemes in the Internet industry and has played a key role in many company's marketing campaigns worldwide. Of course this variety of marketing, otherwise called revenue sharing, has been practiced for a long time by a variety of companies before the Internet was even available, however the birth of the Internet has made it much more popular. Major programs like the one used by Amazon.com came about as early as 1996.

Compensation

Most revenue sharing companies like these one use revenue sharing methods that are extremely effective. In general, companies are compensate based on clicks, or how many times someone from their affiliate company direct a consumer to the website. This means that the consumer puts the affiliate company's name on a lot of places on their websites with links to the other company's website to promote and encourage people to click on it, which makes them more money. It is important that people who use this method be aware of how the compensation methods for this technique of marketing.

People use affiliate marketing because it is so effective and it promotes performance for their website designers. However, it is important for companies to understand that affiliate marketing is not for everyone. This is because these types of marketing schemes take a lot of work and upkeep to run smoothly and successfully. Make sure that you and your team is up to the difficult task of tweaking and maintaining your strategy. One cause for the recent popularity of the affiliate marketing is people's recent gain in trust in Internet shopping. This makes for more affiliate marketing strategies and these make it more successful.

If you have an Internet company, it may be recommended that your consider using an affiliate marketing scheme for your company. Affiliate marketing schemes are usually popular for companies that are Internet based because they are so effective on the Internet. These marketing schemes are good for these types of companies and can be used on a multitude of occasions and are usually considered a great way to promote your business or website. These techniques are great for Internet companies of any kind.
About the Author
David Kowalsky is an experienced Internet Marketer. Visit his Affiliate Marketing blog where he offers free training materials for anybody who wants to start IM career.
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