**By: The Legend

What is Affiliate Marketing?

10 facts about Affiliate Marketing:

1. A layman’s guide to affiliate marketing is this: web publishers will generate leads and sales for you, in return for a bounty each time they do so. Most affiliate programmes are based around this sort of CPA model (cost per acquisition). This is essentially pay on performance, so you only reward affiliates when sales are made.

2. Publishers might display your banner ads to drive referrals. You don’t buy this advertising, you simply pay them when people click through and sign up.

3. Many of the most successful affiliates are experts in paid search. To this end, they can be viewed as an outsourced marketing team. Some ‘super’ affiliates spend millions each year on Google Adwords, and return healthy profits. They are skilled at trading on the margin between buying these ads and your commission.

4. Affiliate marketing networks provide their advertiser clients (aka merchants) with technology and services while acting as a gateway to large numbers of individual affiliates (the publishers). Affiliates search the network to find ads relevant to their audience.

5. The appeal of affiliate marketing for merchants is increased sales, transparency of ROI, and the ability to pay commission to affiliates based purely on performance.

6. Affiliate marketing is becoming an established marketing technique, complementing and sometimes replacing other types of online and offline marketing as an important channel to market. It extends reach without the need for a marketing budget (bounties = cost per sale).

7. The majority of merchants involved with affiliate marketing operate through networks, paying a fee to the network for the sales and leads that are accrued by affiliates.

8. Last year affiliates generated around £2.16 billion in sales for UK-based merchants.

9. The market continues to enjoy robust growth in line with the phenomenal growth of online retail, which shows no signs of abating.

10. Currently the most active sectors for affiliate marketing are the adult, gambling and retail sectors. The three sectors expected to experience the greatest growth are the mobile phone, finance and travel sectors.


Related Blogs: IssaGh.blogspot.com , affiliates.digitalriver.com

Copyright © 2008 The Legend