Affiliate marketing is performance-based marketing where merchants reward affiliates
commission for successful referrals.
There are different types of commission, based on the merchant’s industry:
• CPL
• CPA
• Revenue share
• CPC
The most essential element in affiliate marketing is tracking. Tracking software places a cookie on
a user’s browser when that user clicks on an affiliate link. The cookie period is determined by the
merchant. If the user performs the desired action within the cookie period, the affiliate is awarded
commission.
Affiliate networks are often used as an intermediary between affiliates and merchants. Affiliate
networks provide tracking solutions, reporting and support to both affiliates and merchants.
Affiliates use a number of means to promote merchants.
These include:
• Personal websites
• Content and niche sites
• Email lists
• Loyalty sites (points or cash back or charitable donations)
• Coupon and promotions sites
• Search advertising and search arbitrage
One of the keys to successful affiliate marketing is ongoing communication between merchants
and affiliates.
Source: Red and Yellow
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