What is Affiliate marketing? Affiliate marketing is also synonymous with following terms: associate marketing, associate programs, bounty programs, revenue-sharing, referral and partnership programs.
Originating in USA several years ago with Amazon.com, affiliate marketing has quickly gained acceptance in North America as a viable and effective method of obtaining online screened and targeted site traffic, ongoing revenue generation and building consumer credibility.
This explosive growth and acceptance of affiliate marketing is also rapidly expanding into European and Asian business community, including being translated into numerous languages.
Associate marketing or associate programs are simply revenue sharing arrangements established by sponsor companies selling a variety of online products and services. Web site owners are financially rewarded for sending referrals or customers to business in numerous ways.
Financial compensation results to website owner when a referral goes directly to sponsors site and completes sponsors terms of acceptance.
Terms of acceptance could include that referral do any of following: visiting a site, completing an application or obtaining a quote, registering for a free newsletter, downloading and installing software or making a consumer purchase.
The subsequent payment for lead or referral are defined by sponsor, and can range from a simple one time click through payment or a fixed commission rate, to a multi-tiered payment scheme resembling a MLM matrix that includes potential revenue from future lifetime purchases made by referrals of referrals.
Regardless of payment method chosen, an equitable affiliate program results is a Win Win Win financial situation for all parties involved. The Sponsor receives additional site traffic and potential revenue from a new member; Webmaster(s) receives revenue for providing a qualified lead; and site visitor finds what they were looking for, at an acceptable price.