Affiliate marketing overlaps with internet marketing methods to some degree. In simple terms it is a way of making money online whereby you as a publisher are rewarded for helping a business by promoting their product, service or website.
In another different scenario, you earn an amount for referring a visitor who takes some kind of action – for instance when a viewer signs up for something and gives their email address, where they complete a survey, where they leave a name and address etc. So it is more of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s own marketing efforts.
80% of affiliate programs today use revenue sharing or pay per sale (PPS) as a compensation method, 19% use cost per action (CPA), and the remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM, cost per estimated 1000 views).
With the increase in online traffic, eCommerce and digital media, businesses of all sizes are opting for Affiliate marketing methods to make money as an advertiser or a publisher.
Also lately, affiliate marketing has been working well with bloggers, because it seems to work best when there’s a relationship with trust between the publisher and their readership, and as this trust deepens that readers are more likely to follow the recommendations that a blogger makes.