The Fundamentals of Affiliate Marketing

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One of the most effective ways of marketing on the internet is affiliate marketing.
It was first introduced by CDNow.
com back at the end of 1994, but it was effectively mastered and applied by Amazon a couple of years after.
It is also commonly known as Partner Programs or Associate Programs, and are regarded as one of the simplest ways by which websites can generate revenue.
The concept is quite simple; all that an affiliate website has to do in order to make money is to redirect traffic to the operating site that is running the affiliate program.
Here's how it works: How affiliate marketing works The concept of affiliate marketing is quite simple.
All that a website has to do is to register with an affiliate program that is being offered by an operating site (usually a sales website).
Then, the affiliate website must include links and ads to its own site in order to coax customers in to visiting the operating site.
The more traffic that the affiliate website diverts over to the operating site, the more they will end up earning.
They can earn more, provided that the generated traffic ends up purchasing the services/ items offered by the operating site.
This results in a generated sale via an affiliate website, which earns more money as compared to simply generating 'leads'.
This is the concept of affiliate marketing.
And, because it is so simply and effective, many website networks have been formed which work exclusively with affiliate marketing programs to earn money.
Types Primarily, there are four different kinds of affiliate marketing setups that are used by affiliate websites.
These are all designed to help in the generation of traffic for the site that is operating the affiliate marketing program.
Pay Per impression The Pay per impression model was quite popular in the early stages of the internet, reaching its highest point back in the late 1990's, during the dot com boom.
However, there was a lot of suspected fraud in this model, and it wasn't long before it was abandoned.
It did make a return in 2005 however, via Google under the name of 'Site Targeting' in Google's proprietary ad service, AdWords.
Pay Per Click The pay per click model also became popular during the same time as the pay per impression, and was quite commonly used for several years during the dot com boom, until finally being abandoned by most websites for the high amount of fraud.
However, in 2005, many websites, such as MSN and Yahoo! introduced their own pay per click campaigns.
Contextual Advertising What is commonly known as AdSense was introduced by Google in 2003, and set up the precedent for contextual advertising on the internet.
This is basically the placement of highly targeted ads on the same page as the relevant content.
Pay Per Sale The model used in the world of today, this is also very practical.
Merchants simply pay a small percentage of the sales proceeds that were generated by an affiliate website which was created by a customer.
It is also quite practical.
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