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Affiliate marketing is related to Internet marketing where business rewards its affiliates for bringing relevant visitor or customer for the Company. This is done via affiliate marketing efforts. It is another way of secondary marketing and works when the market has grown in complexity and there is a need of secondary tier of players.
Affiliate marketing has four primary players – Merchant or retailer, Network, Publisher and Customer. The market is not limited to a seller and a buyer market, only. It includes Affiliate marketing Agencies, Super affiliates, and specialized third party vendors. This method is related to other Internet marketing methods including search engine optimization, paid SEO marketing and sometimes displays marketing. The less orthodox techniques include publishing reviews of products and services offered by the partner.
Amazon.com had launched an associate program in 1996. Amazon placed banner or text-links on their site for individual book or link directly to Amazon home-page. When a visitor clicked the associated website to reach a particular book; then he/she is directly linked to home page of Amazon. In this process when a visitor converts into a customer and purchases a book from that website then commission is paid to Affiliate marketing site s well. This became a model for subsequent program.
Affiliate marketing is one of the most sought-after business marketing technologies that generate revenues through secondary marketing programs. One of the most active sectors include retail marketing, which is booming now days and the three sectors which will benefit the most are mobiles, finance and travel sectors. It gets easier to reach to different class of customers and get business from them. This is because the advertiser places information and the visitor takes direct advantage from that information to reap in desired objective from the information.
All business partners are benefitted through affiliate marketing, because the advertiser gets benefitted through additional sales occurring through the third party. It is like business to business marketers and advertisers using affiliate marketing. It benefits the customer by linking to desired website and purchase the product or service through them.
Affiliate marketing increases profits and publicity for a Company through third-party invention.