Meaning Of Affiliate Marketing

Affiliate marketing is a performance based marketing strategy in which one company pays another for referred business.

Meaning of affiliate marketing. The affiliate promotes the product of an entrepreneur company in exchange for a commission for each sale or action carried out. It s selling products on a commission only basis. Affiliate marketing definition revenue sharing between online advertisers merchants and online publishers salespeople whereby compensation is based on performance measures typically in the form of sales clicks registrations or a hybrid model. A marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals.

The use of one website to advertise the products and services of another website. And what affiliate marketing means is when you promote that vendor s product for them and every time you make a sell of that person s product they pay you a percentage of that sell. Despite appearing a novelty this business model emerged in the 1990s when amazon the us giant in the retail segment began making the. The third party publishers are.

This is also known as a commission that you make for that sell and this is what does becoming an affiliate mean as you are an affiliate of that person. Merchants favor affiliate marketing because in most cases it uses a pay for performance model meaning that the merchant does not incur a marketing expense unless results are accrued excluding any initial setup cost. The main goal of affiliate marketing is for website owners to reach new markets. Done well affiliate marketing is a moneymaker that can generate 10 to 40 of a firm s online sales.

Affiliate marketing is an advertising model in which a company compensates third party publishers to generate traffic or leads to the company s products and services.