Affiliate Marketing Plan
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The largest players in the online marketing arena have all implemented an affiliate marketing plan that has validated the affiliate marketing concept as one of the two real channels available to merchants to drive traffic to their website. The two channels are Search Marketing and Affiliate Marketing.  So what is affiliate marketing anyway.  The following are three definitions from:

www.netlingo.com

A revenue sharing arrangement between online advertisers or e-commerce merchants and online publishers or Web site owners, whereby payment is based on performance measures, such as the number of sales, clicks, or registrations that the affiliate refers. In other words, two companies agree to link to one another; if someone clicks from site A to buy something at site B, site A gets a commission on the sale. Affiliate software provides the tracking and reporting of commission-based activities (the sales, clicks, or registrations).  Amazon.com pioneered affiliate marketing by getting as many other Web sites as possible to join its affiliate network and sell its products, thereby greatly extending its marketing reach.

www.webopedia.com

An automated marketing  where a Web merchant recruit webmasters  to place the merchant's banner ads or buttons on their own Web site. Webmasters will receive a referral fee or commission from sales when the customer  has clicked the affiliate link  to get to the merchant's Web site to make the purchase.

www.marketingterms.com

Revenue sharing between online advertisers/merchants and online publishers/salespeople, whereby compensation is based on performance measures, typically in the form of sales, clicks, registrations, or a hybrid model.

 

The advertisers/merchants are typically referred to as affiliate merchants and the publishers/salespeople are referred to as affiliates.

Benefits of affiliate marketing include

bulletthe potential for automating much of the advertising process (receiving & approving applications, generating unique sales links, tracking & reporting of results) and payment only for desired results (sales, registrations, clicks).
bulletpaying only for performance shifts advertising risk from the merchants to the affiliates.
bulletis a low-cost way for merchants to build awareness and showcase their products and services. 

The affiliate marketing  model is simple.  it works as a commission-based referral system. A partner or affiliate markets a merchant's products for a "piece of the pie."

95% of affiliates do not reach their income expectations.  It takes hard work and should start with a well thought out affiliate marketing plan regardless of whether you are an affiliate merchant or an affiliate.

 

Affiliate Marketing Plan    Internet Marketing Plan  Marketing Plan Software Small Business Marketing Plan Strategic Market Planning    Website Marketing Plan 

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Last modified: November 21, 2007