Affiliate Marketing Essay

Topics: Affiliate marketing, Marketing, Internet marketing Pages: 3 (1123 words) Published: May 29, 2007
With the rise of Internetworking a new form of search marketing has evolved. This new method of advertising is one of the best innovations in the electronic world and is commonly referred to as Affiliate Marketing. It proves to be a remarkable source of profit due to the critical mass of customer it helps to acquire over a relatively short time frame. The combined power of this tactic and the vast number of people online can give a strong boost to a company's marketing strategy. Affiliate Marketing programs are simple alliances or contracts between online merchants who want to broaden their reach beyond their own website. This is a type of fusion marketing, but usually with more partners, less personal contact, and a financial connection that is absent in standard fusion marketing arrangements. Affiliate Marketing and its various elements will be discussed in further detail in the next section of this report. Using affiliates – other websites who agree to sell or market their clients offerings in return for a slice of the action, a client merchant can quickly achieve the critical mass of customers it requires. This compared to the traditional means of promotion (advertising, sales promotion, etc.) is not only cost efficient but also effective. "Affiliate programs are one of the most powerful marketing tools available," said Steven Rothberg, CEO and founder of "Basically, it moves advertising from being an expense to being more akin to a cost of goods sold. In other words, rather than paying out a lot of money and hoping that it works, you're only paying out money when you know that it has worked." The market for affiliate marketing has seen significant growth in previous years and is estimated to grow by another 60% to reach £2.16 billion by the end of 2006 . Brands are placing more value on affiliate marketing and are increasing the support they give to affiliates. Affiliate programs have now become an important part of many merchants'...
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