Tuesday

What is an Affiliate Program?

By Betsy Sam


In Affiliate marketing the affiliates gets rewarded for the efforts of the affiliates to bring in customers, just like reward sites where rewards or gifts are given to users for completion of offers, and also for bringing in new customers. The business structure of this kind of marketing consists of four core players: the merchant, the network, the publisher, and the customer. As the usage of internet and the number of users have increased a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors.

The concept of revenue sharing-paying commission for referred business-predates affiliate marketing and the Internet. The translation of the revenue share principles to mainstream e-commerce happened in November 1994, almost four years after the origination of the World Wide Web. Cybererotica was among the early innovators in affiliate marketing with a cost per click program.

Several of the affiliate solution providers expect to see increased interest from business-to-business marketers and advertisers in using affiliate marketing as part of their mix. In February 2000, Amazon announced that it had been granted a patent on components of an affiliate program. The patent application was submitted in June 1997, which predates most affiliate programs, but not PC Flowers & Gifts.com, AutoWeb.com, Kbkids.com/BrainPlay.com, EPage, and several others.

In February 2000, Amazon announced that it had been granted a patent on components of an affiliate program. The patent application was submitted in June 1997, which predates most affiliate programs, but not PC Flowers & Gifts.com, AutoWeb.com, Kbkids.com/BrainPlay.com, EPage , and several others.

Currently the most active sectors for affiliate marketing are the adult, gambling, retail industries and file-sharing services. The three sectors expected to experience the greatest growth are the mobile phone, finance, and travel sectors. Soon after these sectors came the entertainment and Internet-related services sectors. Also several of the affiliate solution providers expect to see increased interest from business-to-business marketers and advertisers in using affiliate marketing as part of their mix.




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