Advertisement publisher is paid for every customer he brings in. This is the basic idea of affiliate marketing. This easy to grasp concept has stayed the same despite changes in affiliate marketing. This is from the time this type of marketing involved spamming, false advertisement or trademark infringement. And until the present, where advanced security has made online marketing safer.
However, due to the great opportunities that it provides for every advertisement publisher, it’s not surprising that they would utilize different tactics. There are email marketing, search engine marketing, RRS Capturing and Display advertising. All these efforts are needed to succeed in the affiliate marketing world. Hence, it’s not surprising that in-house affiliate programs eventually became a thing of the past. And then soon, there was a need for experts. Companies would then outsource these experts. Then pay them to help market their products.
The Advertisement Publisher in the Beginning
Affiliate marketing first truly started with cdnow.com. It was a music-oriented website. It placed a list of music albums on their website. They then paid those who would place these links on their own website. They then got someone to purchase an album. Geffen Records was the first company to link cdnow.com. After a couple of months, a woman approached Amazon and offered her services. She would be an advertisement publisher for their books. In return, she would be compensated for the sales she has made. This was the beginning of the Amazon associates program. Individuals who participate in affiliate programs are compensated in many ways. There’s cost-per-sale (CPS), cost-per-action (CPA), cost-per-mile (CPM) and cost-per-click (CPC). CPS and CPA are the most famous methods. These methods require visitors to sign up or make a purchase before an advertisement publisher can be compensated. This ensures that a website is getting the target market it needs.
On the other hand, CPM and CPC doesn’t require that you attract the target market and a click is enough to bring you commission. Either way, advertisement publishers or affiliates are prone to getting more traffic. Then they can increase their profit. This way is usually referred to performance marketing. An advertisement publisher is paid base on the work he has done. Affiliate marketing is adapted by many companies because it’s cost effective. Companies only have to pay when the results they desire are achieved. Also, the advertisement publisher takes care of the costs except for the initial setup and the development of the program. Both of which are to be taken care of by the merchant. Because it’s very efficient, lots of companies have turned to it. It’s not surprising that a lot of companies are using it because it does generate more money. In UK lone, affiliate marketing was able to generate $2.16 billion. This kind of profit is not only appealing to businesses but also to individuals. By being an advertisement publisher, one can ensure to generate a few extra bucks.