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Affiliate Marketing - A Brief Overview

Jan 6, 2008
There is no doubt that affiliate marketing is one of the most effective ways to advertise on the web. However, you may not know how it actually works. In fact, the concept behind is a very simple one.

A company, Amazon for instance, can ask for another website to place a banner of Amazon. When a surfer follows the banner to visit the site of Amazon, it will pay the website which hosts the banner. And this is the basic idea of affiliate marketing.

At this point we may talk about the history of affiliate marketing. The music website was the first website which used this method to advertise. And this can be traced back to the year 1994. After the pilot experiment of this music site, other sites such as Amazon started to launch various affiliate programs. More and more companies, from small companies to very big ones, have developed their own affiliate programs and most of them are running very well. Some people believed that it is the most famous mode of advertising online today.

You may probably want to know the reasons for the popularity of affiliate marketing. You can think of it in this way. As an advertiser you will certainly want to advertise with little or no risk. And affiliate marketing is perfect in this sense. There is virtually no risk! The advertiser will only pay if the visitors are referred. And they do not need to pay if no visitor is referred from the website that hosts the text links or banners.

The number of unique visitors will be counted in order to calculate the payment to the website hosting the banners. What is good about this is that the advertisers will pay per visit to their websites and it becomes an investment with very little risk. Of course some may count the number of impressions instead of unique visits. However, this will be a more risky option and most advertisers will prefer the concept of unique visitors rather than the number of impressions.

There is another mode of affiliate marketing. Under this mode the advertiser will pay if some follows the links from the publishers and make some purchases. In this case the advertisers will have virtually unlimited budget on advertising since they will pay only if someone has made purchases. However, without any surprise, this will be more difficult for the publisher to make money.

As discussed, affiliate marketing is so popular and famous nowadays. It is good for advertisers since the risk is so little. The publisher will also love it since they can make extra bucks from these programs. As a result, affiliate marketing will keep dominating the world of online marketing in the future.
About the Author
Anson Hall shares Beginners Affiliate Marketing Tips from his website. Be sure to check his Reviews on Free Web Statistic Analyser .
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