What is Affiliate Marketing?

Affiliate marketing is internet marketing that allows websites to share traffic and revenue using banner and text advertisements. Merchants who sell goods and services online pay commissions to website owners (Affiliates) for sending traffic to their site. Affiliates can earn and are paid commissions when one of the following events occur:

Cost Per Sale (CPA)

A visitor referred by the Affiliate purchases goods and services from the Merchant. This payment structure is referred to as - cost-per-sale or cost per acquisition (CPA).

Cost Per Lead (CPL)

A visitor referred by the Affiliate completes a form on the Merchants website. This payment structure is referred to as - cost per lead (CPL).

Cost Per Click (CPC)

A visitor to the Affiliates website clicks on a Merchant's banner and visits the Merchant's website. This payment structure is referred to as - cost per click (CPC).

It's important to choose wisely. In some cases, an ad can be placed on an affiliate's website for months before a potential customer "clicks" or purchases something. If the commission is only pennies, this can lead to a frustrating relationship. Both the affiliate and the merchant are well advised to ensure the relationship will be mutually beneficial.

Affiliate marketing is considered one of the best ways to earn money online. If this is an avenue you wish to pursue, you'd be well advised to research each merchant thoroughly. After that, there's not much else to do except wait for the profits to roll in!


 
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