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SpinDistribute.com Article Directory

The following article was published in our article directory on August 17, 2013.
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Affiliate Marketing - What You Need To Know

Article Category: Advice

Author Name: Jim Lee

Affiliate Marketing has been around since the early 1990s and it is believed to have been invented by CDNow.com but was later perfectly established by Amazon. It is often referred to as partner programs or even associate programs. The main goal of this marketing approach is to generate income by redirecting visitor traffic to specific websites. These types of programs are generally doing so well that they have actually become the industry's most dominant marketing strategy.

There are generally four different kinds of methods that can be used in affiliate marketing. These are PPI, PPC, PPL, and PPS.

PPI (Pay per Impression) and PPC (Pay per Click) were very much used in the industry back in the day. However, these methods were abandoned by most advertisers around the end of the 1990s due to a number of fraud-related problems and the overall lack of favorable results. But just recently, it was revived by Google for AdWords in 2000. This was later followed by Ask Sponsored Listings in 2005 and AdCenter for MSN in 2006.

PPL (Pay per Lead), also known as the CPA (Cost per action) or the CPL (Cost per lead) model, is a system wherein the advertiser pays a commission for the performance of a specific action by a referred visitor. This action may involve filling out a form, signing up for a newsletter, or creating an account. This is a very well-known tool with sites that offer online services for insurance or loans.

PPS (Pay per Sale), also known as CPS (Cost per sale) model, is a model that is more often used by merchants with online stores today. In this model, the merchant will pay a certain commission, usually a percentage of the order amount, to the marketing associate that referred the site to the buyer. This is by far the most common model that comprises at least 2/3 or � of the many available affiliate marketing programs of today.

Affiliate Networks

Operating this kind of program will definitely be able to boost one's business, but the question lies on whether the program should be run in-house or outsourced. There are a lot of networks that offer this kind of service. You will have more control if you run an affiliate program in-house. However, this could be a very costly endeavor. Developing all the necessary tools to make this possible is not an easy task. Outsourcing, on the other hand, can prove to be most profitable because the technology is already developed by an existing affiliate network. All you have to do is pay the commission required per referral.

If you don't have the needed in-house requirements, it is a good idea to outsource it. However, if you already have the program up and running, it will just be the start of the more complicated process of actively recruiting and supporting of existing affiliates. Though a bit of a hassle, this actually proves to be the most cost-effective way to advertise products today.

Keywords: affiliate marketing, internet marketer, make money online, home based internet business

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