The concept of cash sharing has been around for quite some time, long before the Net. But the idea of affiliate marketing has taken it to new levels, and become a staple method of advertising and bringing in business for every type of e-commerce.

Online merchants find affiliate marketing highly advantageous because of the fact that it presents virtually no risk both for the merchant and the “affiliate.” It works in such a fashion the affiliate is given a commission based on the sales his site brings to the merchant thru strategically placed links on his site. About 1 percent of folks that use internet marketing use the cost-per-click system, meaning an affiliate earns commission each time the merchant’s advertisement is clicked. However, due to scammers utilising this method (making ad-ware, sending spam, or worthless indexing sites) this form of remuneration is not preferred and becomes too dodgy for merchants to use.

Affiliate marketing also doesn’t cost the merchant anything to put banners on affiliates’ sites, so they only compensate if a sale or lead is generated. Merchants also get to set the parameters, and decide on the incentive schemes. It is, thus, a very efficient and inexpensive way for a business to grow.

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This entry was posted on Friday, August 7th, 2009 at 2:34 pm and is filed under Web Development. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.