Affiliate marketing, as a revenue generator, is gaining popularity over the years. With the Internet creating new techniques for doing business, advertising through the use of Information Technology has become the need of the hour. Affiliate marketing provides a solution to the business entities to make advertising effective and cost efficient.

This article aims to identify the various aspects of the concept of affiliate marketing through the eyes of a merchant site.

Affiliate marketing

Affiliate marketing or associate marketing takes the assistance of an associate to popularize the products and services offered by the business undertaking. With Internet being a popular means of communication, taking advantage of it for reaching out the wide expanse of customers and potential customers add to the wealth of the business enterprise.

The selection of the affiliate website must be appropriate to the business of the undertaking to enhance the traffic inflow to the merchant website. Proper and continuous evaluation of the contents of the affiliate can throw light on how the affiliate works and the suitability of the content to the current situation and the needs of the people. The basic aim behind the selection of the affiliate is to boost up the sales of the entity.

There are three options before the merchant for remunerating the affiliate for the services provided by him. They are pay-per-sale, pay-per-lead, and pay-per-click that vary with the company policies and needs.

This requires the merchant to keep track of the actions through the affiliate site to make prompt payment. For tracking the Internet cookies from each affiliate and keeping updated information on the payment due to them besides the actual payment, the merchant can seek the assistance of software for speeding up of the process or take the services offered by affiliate networks.

Affiliate networks act as intermediaries between the merchants and the affiliates who keep track of the movement from the affiliate site to the merchant website for remuneration and for maintaining traffic information for both parties.

Advantages of affiliate marketing

Being a pay-for-performance method, affiliate marketing removes unnecessary expenses through normal modes of advertising, leading to better utilization of the funds that can be channeled for productive purposes. By ensuring wider and related search, the merchant can be assured of the presence of genuine interested parties seeking information on his business. It is an effective tool for income generation and brand creation.

A concept popularized by the founder of, Jeff Bezos, and the success of Amazon alone speaks of the role played by affiliate marketing in the modern world of business.

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