How Does Affiliate Marketing Work?
By Tarun Gupta

Definition of Affiliate Marketing Affiliate marketing refers to sharing revenue between advertisers/merchants and website Publishers, when a sale is made by publishers reference, whereby a revenue is shared based on performance levels of a publisher, in the form of sales, number of clicks etc.

Benefits of Affiliate Marketing Affiliate marketing works on the principle of Paying only for performance. Affiliate marketing has contributed to network to online businesses and helps them widen their network and reach to the potential customers.

Amazon.com, Ebay are few examples of one of the first users of this methodology, and now have thousands of affiliate relationships contributing to their sales. It is now rare to find online business models where they don't have affiliate programs.

Technical aspects of Affiliate Marketing Affiliate marketing automates the complete advertising process which largely includes:

  • Publisher Registration Process
  • Advertising Code generation on the fly.
  • Advanced Tracking unique sales & reporting of results against publishers
  • Making payments to publishers for achievements (sales, registrations, clicks).
Common Techniques to Affiliate marketing There are various ways that affiliate marketing can be achieved, to start with here are a few that can come a handful.

  1. Signing up to various ad networks to make a network of affiliates
  2. Setting up your own affiliate network program with the help of popular scripts like Post Affiliate Pro, iDevAffiliate etc.
  3. Publishing your products and services with the help of PPC Advertising (Google Adwords, Yahoo search marketing, MSN Adcenter)
These are the common affiliate networks that can be easily setup, but there are techniques that help you go even further with your affiliate networks to mint money.

Managed Affiliate marketing offering complete Affiliate Marketing Solution that can help you setup your affiliate network that works.

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