What is Affiliate Marketing

(9/20/2006)

In a nutshell, Affiliate Marketing is a referral-based marketing strategy (also called "revenue sharing"), in which Merchants pay Affiliates commissions for referring business to the Merchant's website.

Merchants do not pay for advertising with their Affiliates until a sale or visit occurs. They only pay a small commission to referring Affiliates for resulting sales. Or an even smaller commisions for purely visit based.

Since the referring website (the "Affiliate") has a direct incentive to send customers to the merchant, they tend to market their Merchant's products or services more aggressively than would a prepaid CPM advertiser. In fact, affiliates are becoming well known & well respected for their effective marketing ability.

The technology we offer that facilitates an affiliate marketing strategy, the storebuilder, automates this process for both the Merchants and their Affiliates.

An example:

A webmaster signs up as a new affiliate with a merchant using the storebuilder, gets his affiliate login ID and default banner code. He then logs in to his affiliate administration page, and sees that his account has no activity yet.... (keyword: yet).... he gets a banner or text link to promote the site with and he is off.