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Affiliate Marketing |
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To reward partner companies for introducing new clients. Explanation of Affiliate Marketing. |
What is Affiliate Marketing? DescriptionIt is a promotion method that can be used to reward partner companies for introducing new clients. It can be seen as a digital form of franchising or as an electronic joint venture. The Merchant normally delivers advertising banners and web links to their affiliates. Also the Merchant grants a commission. Normally in return for a click-through to their website, subscription to their service, or purchase of their products which is generated via these links. Affiliates place a tracking code for these ads into their web pages. Each time a visitor on the affiliate's website clicks towards the website of the Merchant, that transaction is registered online. Compensation for the Affiliate may be made based on:
Origin of Affiliate Marketing. HistoryAffiliate Marketing can be seen as the modern variant of paying finder's fees to individuals or organizations who introduce new prospects or clients to a business. In July 1996, Amazon.com launched an associates program that became a huge success.
Usage of Affiliate Marketing. Applications
Strengths of Affiliate Marketing. BenefitsFor the Affiliate:
For the Merchant:
Limitations of Affiliate Marketing. Disadvantages
Final RemarkAt the top and bottom of this page, you can see a remarkable example. You can find some well-known Affiliate Marketing companies which advertise here themselves via this method.
Affiliate Marketing Forum
Affiliate Marketing Special Interest Group
Affiliate Marketing Education & Events
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Compare: 4S Web Marketing Mix | Bricks and Clicks | Operational CRM | TDC Matrix | Twelve Principles of the Network Economy
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