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Affiliate marketing is a very effective form of online marketing, where a company rewards one or more affiliates per visitor or customer brought about by the affiliate’s marketing efforts on the company’s behalf. The more traffic (or visitors) that are brought to the site via the affiliate links, the more the affiliate is rewarded. There are many ways to market via affiliates such as Pay Per Click (PPC) and Pay Per Action (PA).
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A great many companies that offer e-commerce merchant accounts provide affiliate marketing programs to their e-businesses. One such company, LinkShare offers several different affiliate marketing programs. Affiliate programs provide merchants with an excellent way to increase the number of visitors and subscribers to their web sites. Merchants do not have to worry about spending money on advertisements; instead, affiliates are paid based on the number of visitors or customers brought to their web site by their affiliate links. This increases the company’s overall revenue numbers. This is a great benefit for the e-commerce merchant.
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Affiliate marketing allows merchants to reach target markets that are not normally included within a particular demographic. By offering affiliates a commission based on the number of new sales that result from their links, an e-commerce merchant can greatly expand his target market. This is especially true if the e-commerce merchant offers goods or services that are in high demand, yet are not offered by his competitors. By allowing affiliates to market these goods and services via the affiliate links, the e-commerce merchant receives increased traffic which leads to increased sales.
Affiliate Marketing Programs
Merchants may also choose to implement affiliate marketing programs without an e-commerce merchant account. Instead, they could develop their own affiliate marketing system, or work with an existing e-commerce merchant that offers an affiliate network. This is particularly helpful for small companies that are just getting started online. Smaller sites often don’t have the budget to create their own affiliate networks and using an existing network allows them to cut out extra expenses.
Affiliate marketing is one of the most successful ways for e-commerce merchants to earn profit. They receive commissions based on the sale amount generated through their links. Affiliates benefit when e-commerce merchants to increase their sales by allowing affiliates to place their links on their web pages and to promote products or services through their affiliate networks.
These three types of programs are most often used by firms that have many different products to promote.
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Most e-commerce firms use cost per sale affiliate marketing programs. When a customer clicks on your affiliate link and purchases a product or service, you receive a portion of the sale proceeds. This portion is generally a fixed rate, but some firms use a variable rate. If a customer visits your web page, and then clicks away without buying anything, you do not lose any money. However, if the customer does buy something, you do have to pay the affiliate for the sale.
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Benefit Of Affiliate Marketing
When e-commerce firms use cost per click as their affiliate marketing program, the link on your web site directs the customer to a web site owned by a company compensating third-party publishers for letting them advertise on their website. Whenever anyone clicks on the link, this company pays the publisher a commission for letting you advertise. The company receives no direct benefit from customers buying a product or service through your link; you only get a credit for letting them click on your link. You do not have to keep track of how many times your link was clicked on, and there is usually no way to trace where customers came from. However, since every impression is an advertisement, each impression does count.
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