Affiliate marketing is one way of earning from the internet. It is defined by Wikipedia as “a web-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.”
To put it simply let’s say A has a product that he wishes to sell on the internet. So he invites people like B, C and D to sell his products. B, C and D then post details of A’s product in their respective websites or blogs. Usually A provides them with free advertisement materials such as banners, HTML codes, preformatted email letters, Java script codes etc. B,C and D are called “Affiliates of A. If A makes a sale or if a visitor is referred to A’s site by B, C or D’s blog or website then B, C or D is given a certain form of compensation by A.
There are different kinds of compensation schemes in affiliate marketing. The most popular one being Cost Per Sale (CPS), the others are Cost Per Action (CPA), Cost Per Click (CPC) and Cost Per Mille (CPM) These discussed more intensively in Wikipedia’s article on “compensation methods”
According to Wikipedia, “80% of affiliate programs today use revenue sharing or cost per sale (CPS) as compensation method, 19% use cost per action (CPA) and the remaining 1% are other methods, such as cost per click (CPC) or cost per mille (CPM)”
However you are probably reading this article not because you want to have an “encyclopedia” knowledge of affiliate marketing. You want to go out and do it yourself since you heard that the money can be made in the internet and affiliate marketing is just one of those methods. You want to know how to do it and what are the necessary steps that you have to take. You want to learn from the affiliate marketing experts. In this case I am recommending you to one of the best affiliate marketing blogs today, Affiliate Lounge. If you want to know more about Affiliate Marketing and making money online, visit the Affiliate Lounge blog today !!! For bloggers you might be interested that they are giving away 500 Entrecard credits. Visit the blog to find out more.