| Definition
of Affiliate programs Affiliate
programs enable affiliates to leverage
their traffic and customer base in order
to profit from e-commerce while merchants
benefit from increased exposure and
sales.
www.sitenexus.com/glossary.asp
Affiliate
programs allow you to pay and track
incentives to other websites that send
you visitors, leads or paying customers.
You decide on the incentives you pay.
www.infront.com/web-development-glossary.asp
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| These
are programs permitting you to earn money
based on the visitors to your site who
click through to another's Web Site. Some
pay a token amount for the click through
and others provide a percentage of sales
when a visitor "clicks through"
your site and buys a product or service
on the other party's site. This could
represent a value added service to your
visitors, but carried to an extreme, can
delude your own message by cluttering
your pages with banner ads many find more
annoying than useful. www.danznet.com/Glossary.htm
First
Affiliate program
Originally,
affiliate marketing, as we know today was
born in 1995 when Jeff Bez launched Amazon.com. This online
shopping portal used “associate
program” to rank itself as one of
the best selling sites on the internet.
While paying commissions base to
“associates” Amazon expanded
its product range from books to jewelry,
DVDs and online auctions what else.
Basically, anyone owning a homepage could
join in just a few minutes and was
provided a link to send his visitors,
potential shoppers to Amazon's site, for
a commission.
However,
not everyone who joined was lucky enough
to build profit. For example, not every
visitor, sent to Amazon, was within a
“target group”. The system is
more sophisticated today with links
leading to certain group of products or
special “promo” offers,
increasing incentives.
Later,
new shopping sites were jumping out of
nowhere: CDNow, Sparks.com, 1-800-flowers.com, are just a few
names that were promising you a fortune
if you join and start advertising what
they sell. Internet also brought new
packing for a very old product: E-books.
After entering credit card number you
could be enjoying your favorite genre in
just a few moments. No shipping. No
handling. Low costs for the seller and
immediate download for the customer.
Sites offering e-books for download
became a magnet for affiliates. Profits
in this sector are very high and offered
commissions reach level up to 50%.
Commissions for music CDs, DVDs, are up
to 10%. The higher commissions are
offered only between online dating sites
(some personals networks offer up to
75%).
New
startup dot-com companies brought
affiliate marketing to a new level:
second-tier.
This
system supposed to make recruiting
affiliates easier and for current
affiliates create one more cash source
and motivate them to recommend program to
other fellow webmasters. Upper affiliate
usually earns between 5% and 25% (of what
affiliate below him) on every transaction
affiliate they recommended makes.
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