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The following article was published in our article directory on October 12, 2015.
Learn more about SpinDistribute Article Distribution System.
Article Category: Marketing
Author Name: Nicolas Vanhoucke
In the emergence of different search engines in the 90s, it has become easier for people to browse on certain topics in different websites. Subsequently, people who actively updates and puts new contents on their websites somehow wants to be compensated for all their effort. With this outlook, affiliate marketing was conceptualized.
The Three Way Relationship
Affiliate marketing, simply put, is a form of online advertising wherein an online business associates itself with a particular website using specific programs to generate leads, traffic, or sales.
To work properly, affiliate marketing makes use of the relationship between three participants. Namely, these are the advertiser, publisher, and consumers.
The advertiser is the online business company that offers products or services of some kind, or simply wants to generate traffic in his own website. In a nutshell, an advertiser is the one that is willing to pay other people (specifically the publisher) to help himself promote the business.
The other essential part of the three way affiliate relationship is the publisher. The publisher is the company or an individual that promotes the advertiser�s products or services in his own website. Promotion can be in any form. The most popular forms are by placing banners, links, numbers, or even text ads in strategic places in the website. Although there are many choices in regards to choosing a publisher, some parameters must be considered first for the affiliate marketing to be effective. Some of the considerations to ponder upon are the type of website the publisher owns, its target audience, and the traffic or number of visitors it attracts per day. In exchange for the advertisement, the publisher receives commission from the advertiser. The payment model and mode of payment are pre-discussed by the participating individuals or company.
The last element that completes the three way relationship of affiliate marketing is the consumer. The consumer is the one who performs an action upon seeing the advertiser�s promotions in the publisher�s website. Upon clicking the ad, the consumer will be directed to the advertiser�s website to generate traffic or complete a sale. This action by the consumer is commonly referred to as conversion.
Different Payment Models
Before agreeing to a contract, the advertiser and the publisher must first agree upon a certain payment model. Usually, a specific payment model is chosen based on the advertiser�s target � whether he wants to sell particular goods and services, or whether he just wants more people to know his website.
The first payment model in affiliate marketing is called the cost per sale. In this model, a publisher will get paid if a consumer, upon clicking on the advertisement in the website, availed of the advertiser�s services or completes a sales deal. If no sale is completed, even if the consumer clicked on the ad, the publisher will not be paid.
The second payment model is called cost per lead. In this, a publisher will only get paid when a redirected consumer completes a form in the advertiser�s website. This is usually the preferred model when the advertiser wants surveys to be completed.
The last model of payment is the cost per click. This model suggests that a publisher will be paid every time a consumer clicks on the advertiser�s ad, regardless whether he bought products, goods, or completed a form.
Keywords: high traffic academy , internet marketing, affiliate marketing ,network marketing, traffic generation , traffic conversion, traffic leads ,
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