Lets Know – What is Affiliate Marketing all about?

The whole concept of affiliate marketing is quite broad. It has quite a number of aspects included in it. The most concise way of summarizing the whole affiliate marketing concept in one is that it is a means of marketing that is based on performance.

The term ‘affiliate’ in itself refers to an individual that works in a business owned by another individual with the aim of earning the business profits in exchange for commissions. Affiliate marketing started off in the non-virtual setting with business growing through affiliate marketing. The same was translated into the online world.affiliate-marketing

Must Read: Few Facts about Affiliate Marketing

The affiliate marketing network system

As stated earlier, this marketing involves affiliates getting rewarding using commissions for any profits or works they get for the business. This whole concepts works in what is referred to as an affiliate marketing network. Such a network has four main parts/individuals.

#Part 1: This is the retailer. He or she is more like the ‘boss’ of the network.

#Part2: The second part is simply the network system itself. This system gets to dictate the payment plans for the affiliates as well as the whole operation of the network.

#Part 3: The affiliate takes the third part of the system. The affiliate gets the business running through the businesses or clients they bring into the business.

#Part 4: The clients take up the fourth part of the network. This is by far the most important bit of the network since it is the part that actually pays the entire business for all their efforts. Were it not for the client, then there would not be a business in the first case.

Determining how to reward affiliates

Though most affiliates in affiliate marketing are rewarded for their work through commissions, the rate of commissions for different affiliates tends to differ. What criterion is used to determine the amount of commission each affiliate deserves? The most common and reliable technique is that of the CPA affiliate program.

CPA in this case is an acronym for Cost per Action. In that case, each time the client does an action as recommended by the affiliate, the affiliate earns him or herself a commission. Some of the techniques included in the CPA affiliate program include writing of reviews, signing up, filling forms and sales of products.

Another commonly used criterion of affiliate marketing is that of CPL. CPL stands for Cost per Lead. Here, the commissions are earned after the affiliate taps information of potential clients via getting them to sign up, fill forms or the likes.

More of your choice:

1. 97% of people fail in their Affiliate Marketing: Do you know why?

2. 3 Tools to get success in Affiliate Marketing

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