Definition of Affiliate Marketing
Simply put Affiliate marketing definition would be : Selling products and services belonging to someone else from their own websites. Affiliates earn a commission from the merchants for selling their products and services.Affiliate marketing is one of the key components of Internet marketing
Best practices for Affiliate marketing would be almost the same as any website trying to sell their products and services online. The difference here is, they will be competing with not only the merchant’s site but also other affiliates. The key is to be original (content wise) and to have attractive Ad campaigns.
Merchant sites that sell products and services globally, may have affiliates who display products on their site. Customers who click on the products are taken to the merchant’s site, and if any of those clicks result in conversion, the affiliate earns a commission on that sale.
Sometimes Affiliates can enroll partners under them, who in turn help them self the products/ services. There are various levels of affiliate programs and varies from merchant to merchant.
Mostly websites that are already established and are selling products and services from their website can do well as an affiliate. By being an affiliate such websites increase their chances of earning more money . This is not to say that new sites will not do well, but it would require much more effort and a lot of advertising effort as well. Affiliates usually use Search Engine Marketing: SEO and Pay Per Click advertising to advertise their sites. Usually Pay Per Click brings instant results, but this involves spending marketing dollars.
The models that Affiliates usually work with are essentially, “Cost per action”, “Contextual advertising”, and “Revenue sharing” models.
Affiliate marketing is another means through which merchants can sell their products and services online. Especially, if the products need to be promoted globally. By establishing an affiliate partnership with an already established local site, merchants can boost the sale of products and services. It is a win-win situation for the merchants and Affiliates since this becomes a passive income source for affiliates and the merchants in turn gain by increased sale of their products and services.
If you wish to try out Affiliate marketing to promote your products and services, check out Commission Junction, they offer various options to start off your Affiliate program.
For more on Affiliate marketing, visit http://en.wikipedia.org/wiki/Affiliate_marketing