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I hate affiliate marketing

I hate affiliate marketing

Article by SuperAffiliateMarketer

I hate affiliate marketing…….because it is providing excellent passive income to everyone, including my enemies

…. but what is “affiliate marketing”?

Affiliate marketing is the process of joining affiliate programs, promoting them and making commissions out of them, whereby you will be helping someone to sell his/her products and in return you will get a certain percentage of the income as your commission (i.e. via clickbank).

Affiliate marketing is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s marketing efforts. The industry consists of four main players: the merchant, the network, the publisher (affiliate’) and the customer. Since then, the industry has grown sufficiently to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialised third parties vendors. Majority of the affiliate programs today utilises revenue sharing or cost per sale (CPS) as a compensation method, some uses cost per action (CPA), whereas the remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM). In mature markets, a small percentage of traditional affiliate marketing programs today use cost per click and cost per millle which are used heavily in display advertising and paid search.

The concept of cost per mille requires the publisher to make the advertisements available on his/her website and display them to the visitors in order to receive a commission. On the other hand, pay per click requires the visitor to click on the advertisement to visit the advertiser’s website. Cost per click was more common in the early days of affiliate marketing but has diminished in use over time due to click fraud issues. Although these models have decreased in popularity among mature e-commerce and online advertising markets they are still widespread in developing countries such as China, with many affiliates being paid a flat “Cost Per Day” with some networks offering Cost Per Click or CPM.

In the case of cost per click, the publisher is not worried whether a visitor clicks onto an advertisement and purchase a product because at this point the publisher has already earned a commission by the sheer action of the visitor clicking onto the advertisement. Thus, the advertiser would face a greater risk of not getting any commission if their product is not purchased by the visitor. Cost per action requires visitors to do more than visit the advertiser’s website before the affiliate could receive a commission. The advertiser must convert that visitor first. Thus, it would be advantageous for the affiliate to send the most closely-targeted traffic to the advertiser in order to increase the probability of a conversion. In this case, the risk and loss is shared between the affiliate and the advertiser.

Affiliate marketing is also known as performance marketing by virtue of how sales employees are being compensated. These employees are being paid a commission for each sale they make. In addition, they are paid performance incentives if they exceed their targeted baselines. Affiliates are not employed by the advertiser whose products or services they promote but the compensation model is similar to the ones used in the internal sales department.Some advertisers provide multi-tier programs that distribute commission into a hierarchical referral network of sign-ups and sub-partners. Although two-tier programs exist in a minority of affiliate programs, most programs are mainly based on one-tier. Referral programs that extend beyond the two-tier model would resemble multi-level marketing (MLM) or network marketing. There is a tendency for merchants to prefer affiliate marketing because it uses a “pay for performance” model. This means that the merchant does not incur any marketing expenses unless results are accrued. Some of the more successful organization using this model is Amazon.com and Clickbank.

The increased number of internet businesses and the increased number of people that trust the current technology enough to shop and do business online allows further maturation of affiliate marketing.

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An expert in the field of affiliate marketing

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