Affiliate Marketing Explained-Part II

Affiliate Marketing Compensation

…In affiliate marketing, the affiliate is compensated for every visitor, subscriber and/or customer provided through his efforts. This compensation (usually referred to as commission) may be made based on a certain value for each visit. The most attractive aspect of affiliate marketing from the merchant’s viewpoint is that no payment is due to an affiliate until results have been attained.

Affiliate Marketing

Affiliate Marketing and Passive Income

Affiliate networks that act as a third party between the merchant and the associated affiliates typically run affiliate marketing. The network provides the technology to deliver the merchant’s campaigns and offers. The affiliate network also collects commission fees from the merchant and then pays the affiliates who are part of the program.

A merchant is any web site owner that wants or desires to take advantage of performance-based marketing. The benefits to the merchant are many. First, the merchant has control of the program and can insist upon his/her own terms and conditions. The merchant needs to do their part by researching interested affiliate websites to ensure that they are a good fit for that particular website. Finding a fit for their merchandise would be the key to more generated income. This gives the merchant more access to markets and customers without him spending valuable time searching them out. Banner ads on affiliate sites are not distracting to the site user. It might produce interest for that product and drive the consumer to the merchants’ website, generating passive income for the affiliate.  It is also the merchant who decides how much he is willing to pay for each sale that results from a visitor sent to him from an affiliate.

The affiliate or the affiliate marketer also sees a lot of benefits. The affiliate is usually a web site owner who promotes one or more merchants and their affiliate programs. Affiliate marketing can generate a full-time income for the affiliate, but this is not an easy task to accomplish. The affiliate needs to have a better understanding with the merchant what the commission will be, expected payment method and time involved in the contract. The affiliate has also the responsibility to ascertain for the merchandise what their user base would be most interested in. As an example, if the affiliate site has a user base of mainly stay-at-home mothers, then on-line job openings such as surveys could be a good match for them. This group may also appreciate direct links to children’s products and informational sites along similar lines. Merchandisers often provide targeted, best-seller items and personal support to their affiliates. Many will often offer sales promotions from time to time and this can benefit both the merchandiser and the affiliate…

Article Source: by Brian Hunter

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