Affiliate marketing Programme is an Internet-based marketing practice in which a business gives commission one or more affiliates for each visitor or customer brought about by the affiliate's efforts for making traffic for the said business.
Affiliate marketing is also the name of the industry where a number of different types of companies and individuals are performing this form of Internet Predominant compensation methods
System of Cost Per Sale: 80% of affiliate programs today use revenue sharing or cost per sale (CPS) as a commission method, 90% use cost per action (CPA), and the remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM).
Diminishing of Commission: Less than one percent of traditional affiliate marketing programme today use cost per click and cost per mille. However, these compensation methods are used heavily in display advertisement and for paid search.
Cost per mille ( CPM) requires only that the publisher make the advertisement available on his website and display it to his visitors in order to receive a commission. Pay per click requires one additional step in the conversion process to generate revenue for the publisher: A visitor must not only be made aware of the advertisement, but must also click on the advertisement to visit the advertiser's website.
Cost per click was more common in the early days of affiliate marketing, but it has been diminished in use over time due to click fraud issues very similar to the click fraud issues modern search engines are facing today. Contextual advertising programs such as Google AdSense are not considered in the statistic pertaining to diminished use of cost per click, as it is uncertain if contextual advertising can be considered affiliate marketing.
Affiliate marketing is also the name of the industry where a number of different types of companies and individuals are performing this form of Internet Predominant compensation methods
System of Cost Per Sale: 80% of affiliate programs today use revenue sharing or cost per sale (CPS) as a commission method, 90% use cost per action (CPA), and the remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM).
Diminishing of Commission: Less than one percent of traditional affiliate marketing programme today use cost per click and cost per mille. However, these compensation methods are used heavily in display advertisement and for paid search.
Cost per mille ( CPM) requires only that the publisher make the advertisement available on his website and display it to his visitors in order to receive a commission. Pay per click requires one additional step in the conversion process to generate revenue for the publisher: A visitor must not only be made aware of the advertisement, but must also click on the advertisement to visit the advertiser's website.
Cost per click was more common in the early days of affiliate marketing, but it has been diminished in use over time due to click fraud issues very similar to the click fraud issues modern search engines are facing today. Contextual advertising programs such as Google AdSense are not considered in the statistic pertaining to diminished use of cost per click, as it is uncertain if contextual advertising can be considered affiliate marketing.
Performance Based Commission
In the case of cost per mille/click, the publisher is not concerned about a visitor being a member of the audience that the advertiser tries to attract and is able to convert, because at this point the publisher has already earned his commission. This leaves the greater, and, in case of cost per mille, the full risk and loss if the visitor can not be converted to the advertiser.
Cost per action/sale methods require that referred visitors do more than visit the advertiser's website before the affiliate receives commission. The advertiser must convert that visitor first. It is in the best interest for the affiliate to send the advertiser the best-targeted traffic as possible to increase the chance of a conversion. The risk and loss is shared between the affiliate and the advertiser.
Affiliate marketing is also called "performance marketing", in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they done, and sometimes are paid performance incentives for exceeding targeted baselines. Affiliates are not employed by the advertiser whose products or services they promote, but the compensation models applied to affiliate marketing are very similar to the ones used for people in the advertisers' internal sales department.
The Affiliate Marketing Programme , including affiliate networks, affiliate management companies, and in-house affiliate managers, specialized third party vendors, and various types of affiliates/publishers who promote the products and services of their partners.
Affiliate marketing overlaps with other Internet marketing methods in some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization, paid search engine marketing, e-mail marketing, and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.
Affiliate marketing—using one website to drive traffic to another—is a form of online marketing, which is frequently overlooked by advertisers. While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies.
Join AdSense Programme of Google and Earn from Your Blogs or Web Sites
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