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What is Affliate Marketing?


Affiliate Marketing is a new buzz word in the innovative world of internet. The concept of it is however, in no way new. Agents and salesmen around the world have long been practicing it by luring in customers to the product sellers and earning their commission on a successful deal. However the networked world of internet has opened new vistas for affiliate marketing. Not only has affiliate marketing become easier , it is now a genuine need of product makers in the increasingly commercialized of e-marketing.

The Concept

To those who have never heard about affiliate marketing, the concept is easily understood by explaining the three majors of this concepts. These are:-

ü  The Merchant .  Merchant is the product marker. For obvious reason of making more and more profit , merchant wants to sell his product to more and more customers.

ü  The Publisher.  He is the intermediary between the merchant and the customer. He targets , lures and brings the customer the doorsteps of the merchant.

ü  The Customer.  He is the consumer who is in need of the product. He is hunting for the product and the publisher is on hunt for him. Somehow the merchant is unable to directly market his product to the customer and needs the help of the publisher.

ü  The merchant and the publisher are therefore affiliates in the business of product selling.

Why do Product Makers need Affiliates?

Well there could be a number of reasons for that. The manufacturer may be too busy. He finds that he can concentrate on the production and quality assurance aspects and sublet the task of online market to his affiliate. After sometime he finds that through his affiliate , he is now winning more and more customers and making better profit . As an example , the manufacturer could be a specialist in making herbal medicines in some Asian country. He finds that his product is very effective but there is a very small customer base for it in his country of origin.  He has already tried greater marketing for his product by making a dedicated website but it is not attracting much traffic and sales of the product are down. The publisher who is a European and  incidentally owns a blog site  gets to know about this wonderful medicine and is already in knowledge of a large number of people who are in need of it. He posts an add banner on his blog site. The target customers who regularly visit the blogs of the publisher stumble upon the newly posted add, click on it and a pop up window lead them to the manufactures website. Manufacture is now able to sell greater number of products and earns more profit. He is therefore happy to give a commission to his affiliate—-the publisher.

On a bigger scale the manufacturer may be some large company and the affiliates may be networked group of people who have bunched up together for an online marketing program of the product.

Payment Mechanisms.

There are two ways the affiliates get paid through affiliate marketing mechanism. One is simply on successful sale of the product. Other is by getting a commission on successfully directing a customer to the manufacturer’s website .Since every thing is happening online , keeping a track of the successful sales and number of hits received by the manufacturer from the affiliate is not difficult. The web programmers have made softwares to make affiliate marketing easier and sales count transparent to both publisher and the merchant.

The Future.

So its all ready for you. Online shopping is fast becoming the preferred choice of customers. The volume of online sales will continue increasing and product manufactures will be more then ever dependent on affiliates for marketing and selling their products. So this means,we have a very great future for affiliate marketing.












About Emaad Qureshi