Affiliate marketing is a concept of revenue sharing between online advertisers/merchants and online publishers/salespeople, whereby compensation is based on performance measures, typically in the form of sales, clicks, or registrations.
The translation of the revenue share principles to mainstream e-commerce happened almost four years after the origination of the World Wide Web in November 1994.
Cybererotica was amongst the early innovators in affiliate marketing with a cost per click program. During November 1994, CDNOW launched its BuyWeb program. With this program CDNOW was the first non-adult website to introduce the concept of an affiliate or associate program with its idea of click-through purchasing.
Benefits of affiliate marketing include the potential for automating much of the advertising process (accepting & approving applications, generating unique sales links, tracking & reporting of results) and payment only for desired results (sales, registrations, clicks).
Paying only for performance shifts much of the advertising risk from the merchants to the affiliates, although merchants still assume some risk of fraud from partner sites.
Affiliate marketing has contributed to the rise of many leading online companies. Amazon.com, one of the first significant adopters, now has hundreds of thousands of affiliate relationships.
There are two ways to approach affiliate marketing: You can offer an affiliate program to others or you can sign up to be another business’s affiliate. As the business driving an affiliate program, you’ll pay your affiliates a commission fee for every lead or sale they drive to your website.
And what about joining another company’s affiliate program? It’s all about extra revenue. Think about your customers’ needs: What other products or services would interest your site visitors? Join those affiliate programs. Affiliate programs can increase your sales with no upfront cost to you. It just takes a little time to plan your strategy and select the partners that will have the greatest impact on your business.