What is Affiliate Marketing?Defined

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The simplest way to describe affiliate marketing is the ability to sell someone else's product and receive a percentage commission of the sale.
The actual definition however is an internet based marketing practice, which pays an affiliate for every visitor they send or product they sale of the sponsoring website.
Affiliate marketing is used in various ways and in conjunction with other advertising methods, both conventional and not.
Conventional methods include things like paid search engine marketing, search engine optimization and email marketing.
More creative manners of advertising have been through the use of product reviews.
In this manner, the affiliate will write or pay someone to write a review of the product they are promoting.
This has an advantage over traditional advertising in that people do not feel like they are being sold something.
Instead, they feel like they are making an informed decision.
History Affiliate marketing is not a new concept, in fact in ways it is very similar to programs that other businesses have used outside of the internet for years.
The difference of course is that unlike selling things on commission many times the affiliate marketer does not have to ensure a sale to earn their commission.
Simply getting people to the correct web site is enough to earn modest returns.
In fact, in a study done in 2006 sales from affiliate-based, sales topped 2.
16 billion dollars in the United Kingdom alone, and total fees and commissions collected by affiliates worldwide were over six billion.
Those are staggering numbers all things considered, it is no wonder that so many are interested in becoming a part of the affiliate-marketing world.
Compensation In the majority of cases, the affiliate compensation plan is based on a per sale basis.
This means the affiliate only earns a commission when an actual sale takes place.
However recognizing the importance of good contact information some marketers began to include a small compensation for affiliates when potential customers fill out contact information.
Of course, this type of commission is much smaller than a sale based commission but provides at least some reimbursement for the affiliates work.
Over all this has been a very profitable marketing tool for many businesses.
This is due in large part to the fact that there is no upfront advertising cost.
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