Affiliate Marketing is the revenue sharing between online
advertisers/merchants and online publishers/salespeople, whereby
compensation is based on performance measures, typically in the
form of sales, clicks, registrations, or a hybrid model. The
advertisers/merchants are typically referred to as affiliate
merchants and the publishers/salespeople are referred to as
Benefits of affiliate marketing include the
potential for automating much of the advertising process
(accepting & approving applications, generating unique sales
links, tracking & reporting of results) and payment only for
desired results (sales, registrations, clicks).
Paying only for performance shifts much of the advertising
risk from the merchants to the affiliates, although merchants
still assume some risk of fraud from partner sites.
Affiliate Marketing Tools
Affiliate Marketing Tools are the software/services that,
at a minimum, provides tracking and reporting of
commission-triggering actions (sales, registrations, or clicks)
from affiliate links.
Affiliate merchants that run 100% in-house affiliate programs
need to find--and possibly customize--affiliate software to
handle transaction tracking and reporting. Solutions range from
free and almost-free scripts to expensive software packages.
Affiliate merchants that use affiliate networks do not have
to directly manage the affiliate software, although integration
must occur between the affiliate merchant's site and affiliate
Affiliate Network is a value-added
intermediary providing services, including aggregation, for
affiliate merchants and affiliates.
For affiliate merchants, services can include providing
tracking technology, reporting tools, payment processing, and
access to a large base of affiliates.
For affiliates, services can include providing one-click
application to new merchants, reporting tools, and payment
Affiliate Program Guide
Affiliate Program Guide includes guide and
software that help you profit from affiliate programs.