Affiliate Marketing

Affiliate marketing is a type of performance-based marketing in which a business pays a commission to one or more “affiliates” for each prospect or customer the affiliate brings to the business. ┬áThe key players in the transaction include the following:

  1. Business selling a product or service
  2. E-commerce program which makes the products or services available, records the transaction and facilitates payment for the goods or services and the commission to the affiliate
  3. Affiliate who is advertising the business’ product or service
  4. Customer who is purchasing the business’s product or service due to the advertising by the affiliate

The affiliate may use a number of advertising strategies, including:

  1. Search Engine Optimization (SEO)
  2. Paid search engine marketing
  3. Email marketing
  4. Content marketing
  5. Display advertising
  6. Product reviews and recommendations

The affiliate’s marketing efforts can be rewarded by the business in a number of ways:

  1. Revenue sharing
  2. Pay per sale (PPS)
  3. Cost per action (CPA)
  4. Cost per click (CPC)
  5. Cost per mile (CPM)