A revenue sharing venture between a website owner & an online merchant
Website owner places advertisements on their sites to either help sell the merchant’s products or to send potential customers to the merchant’s website in exchange for a share of the profits.
There are three main ways an affiliate can earn money:
Pay Per Click (PPC)
Every time a potential customer leaves the affiliate website by “clicking” on the link leading to the merchant’s website, a certain amount of money is deposited in the affiliate’s account.
Pay Per Sale
Every time a sale is made as a result of advertising on the affiliate’s website, a percentage, or commission, is deposited into the affiliate’s account.
Pay Per Lead
Every time a potential client registers at the merchant’s website as a result of the advertisement on the affiliate’s account, a previously determined amount is deposited into the affiliate’s account
Why use Affiliate marketing?
- You get mass coverage at no additional cost. Attempting to get a similar level of coverage through another method can be more expensive.
- By placing affiliate marketing advertising on websites all over the Internet, you potentially have free advertising
- The more websites a you are affiliated with, the more exposure your product/service will get
- You only incur a cost if and when the agreed action occurs – No action = No cost