Affiliate marketing is a method of promoting web businesses in which an affiliate is rewarded for every visitor, subscriber, customer, and/or sale provided through his/her efforts. Compensation or commission may be made based on a certain value for each Impession (CPM), click (Pay per click), registrant or new customer (Pay per lead) or (Cost Per Acquisition / CPA), sale (usually a percentage, Pay per sale or revenue share), or any combination of them.
Merchants like affiliate marketing because in most cases, it is a “pay for performance model”, meaning the merchant does not incur a marketing expense unless results are realized, excluding the initial setup and development of the program. Some businesses owe much of their growth and success to this marketing technique, one example being Amazon.com, especially small and midsize businesses. However, unlike display advertising, affiliate marketing is not easily scalable.
Some merchants run their own affiliate programs while others use third party services provided by intermediaries to track traffic or sales that are referred from affiliates. Merchants can choose from two different types of affiliate management solutions standalone software or hosted services typically called affiliate networks.
At agnitio we help you determine the right strategy if you would like to start your own affiliate program or join one of the affiliate networks and promote products from other publishers. Our expertise with affiliate marketing will help you generate revenues and aso increase your customer base multiple fold.