So if most brand leaders are running affiliate programmes and finding that affiliate marketing is a precious online sales resource that is accounting for a higher percentage of overall online sales year on year and affiliate marketing is obviously good for businesses because the business does not incur any marketing expense until a result is realised by the affiliate, then why are so many businesses missing out.
It may just be because like a lot of things to do with the internet many people do not quite understand how it works, so here is my explanation of affiliate marketing in a nutshell.
Affiliate marketing is a way of promoting online businesses where an affiliate is paid for every customer, sale or client provided to a business through his/her efforts. It is a new version of a finder's fee for the introduction of new clients to a business.
Payment is usually based on a percentage of the profit made from the new business that the affiliate has sent to the agreed website, other forms of payment are based on a certain value for each visit Pay per click (payment based on a certain value for each visit), or each time an advert is viewed (CPM).
Compensation may be made based on a certain value for each visit (Pay per click), registrant (Pay per lead), or a commission for each customer or sale (Pay per sale), or any combination. Affiliate marketing is good for merchants because the merchant does not incur any marketing expense until a result is realised by the affiliate.
For more information on Affiliate Marketing visit the Affiliate Marketing section of www.scusimedia.com
Elisabeth Ciarrocchi of http://www.scusimedia.com