Affiliates mean that any legal entity owned by you, or under a common ownership with you. Usually ownership is defined as more than 51% ownership.
What is an Affiliate Program?
An affiliate program - also known as an Associate Program - is an increasingly popular form of online marketing, in which a website that refers business to your website is paid a small commission. Referrals are steered to your site via a specially coded banner or link, which appears on sites that have agreed to send business your way.
What is an Affiliate Program Marketing?
The marketing concept has captured the imagination of marketers, because it represents an unrivaled opportunity to base advertising on a pay-per-performance model. Instead of paying advertisers and "hoping for the best," merchants using affiliate marketing programs pay only when advertising results in an actual sale.
In a phrase, affiliate marketing is single-handedly redefining the way advertising is done.
As you might imagine, many merchants see this new paradigm as a license to print money, and have devoted a great deal of effort to sign-up as many affiliates as possible. Indeed, in many cases, merchants with successful affiliate marketing programs boast hundreds - if not thousands - of affiliate websites, which continually feed them potential customers on a daily basis.
Moreover, the concept has also given rise to a new brand of entrepreneur: the power affiliate. Such referral websites have become extremely adept at attracting high quality traffic representing true sales potential to their own sites, and then spiriting that traffic along to the appropriate merchants. In many cases, these power affiliates have created entire careers and businesses for themselves, simply with their ability to deliver high quality traffic on a regular basis.
How is Affiliate Marketing yields?
Affiliate Marketing is a revenue sharing venture between a website owner and an online merchant. The website owner will place advertisements on his websites to either help sell the merchant's products or to send potential customers to the merchant's website, all in exchange for a share of the profits. There are three ways to earn money through affiliate marketing: Pay Per Click — Every time a potential customer leaves the affiliate website by "clicking" on the link leading to the merchant's website, a certain amount of money is deposited in the affiliate's account. This amount can be pennies or dollars depending on the product and amount of the commission. Pay Per Sale — Every time a sale is made as a result of advertising on the affiliate's website, a percentage, or commission, is deposited into the affiliate's account. Pay Per Lead — Every time a potential client registers at the merchant's website as a result of the advertisement on the affiliate's account, a previously determined amount is deposited into the affiliate's account.
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