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Essay / Affiliate Marketing - 1114
Affiliate MarketingAffiliate marketing is a popular method of promoting business on the web in which an affiliate is rewarded for each visitor, subscriber and/or customer provided through their efforts . This is a modern variation on the practice of paying finder's fees for introducing new customers to a business. Compensation can be based on a certain value for each visit (Pay-per-click), subscribed (Pay-per-lead) or a commission for each customer or sale (Pay-per-Sale)¡¨ (Affiliate Marketing , 2006).According to Harwood (2005), it is not enough for the affiliate to generate traffic to be paid. Most affiliate networks operate on a CPS (cost per action) basis, so the customer may need to make a purchase or sign up for a service. ¡§There are a number of affiliate network providers, including TradeDoubler, DGM, Commission Junction, Affiliate Window and Affiliate Future, which sit between the advertiser and the affiliate providing the underlying technology. This includes tracking and reporting sales made through affiliate programs. The network also receives a commission based on the CPA. The benefit of running an affiliate program is that it is a cost-effective method of acquiring customers, while also allowing small web publishers to monetize their sites. Affiliates can be any size, but they tend to be experts in online marketing and customer acquisition, especially in the area of search engine marketing. Affiliates will optimize their sites and use paid search to gain traffic, which they will then pass on to the merchant (Harwood, 2005, p.24). E-Marketing Affiliates Various large e-marketing affiliates like Commission Junction, LinkShare, and AssocTrac offer e-marketing and revenue potential to online advertisers and publishers. Each company is summarized below. „X Commission Junction (www.cj.com). Commission Junction enables the consolidation of multiple affiliated merchants through a central tracking system. Promotion of branded products can be done through text links, banner ads and product links. The company also offers electronic marketing tools to help increase sales and leads. The company offers a suite of marketing products and multi-channel online marketing solutions that help advertisers achieve their revenue goals. Advertisers only pay for positive responses, which means the risk is low. Advertisers can also increase or decrease their pay rates. Publishers make money by placing information on their site that is used to maximize revenue. „X LinkShare (www.linkshre.com). LinkShare provides a suite of web-based tools and services as well as a pay-for-performance program. Linkshare provides access to a large number of advertisers who offer programs to affiliates.