Affiliate Marketing: Profitable and Consistent

Four years after the Internet was born, an online company called CDNOW started the online transaction called “BuyWeb”. Purchases are done by clicking the item on their website, that you are interested with. Also, it functions independently from a storefront.

CDNOW’s online system is the pioneer form of profitable affiliate marketing. After some time, many online businesses followed its steps to success (Amazon.com is an example). Affiliate Marketing has been an important tradition in the family of marketing strategies. The system has evolved into a consistent method of advertising and selling. Hence, it has become a staple amongst the large companies due to its effectiveness and economical characteristic. Moreover there is a little to no risk involved for both the merchant and affiliate.

Commonly, affiliate marketing functions on cost-per-click or CPC systems, wherein the affiliate earns for every redirected visitor to the merchant’s website. The readers are sent to the merchant by clicking a link or an advertisement posted on the affiliate’s site. This kind of system is very vulnerable to fraud, which is very disadvantageous for the merchants. There are a lot of fraudster who take advantage of this system through the following tactics: spamming, making false ads or bait (that are not even related to the product), formulating ad-ware, utilizing forced click system, Search Engine Optimization or SEO “keyword stuffing”, tracking cookies and other similar techniques. This cost-per-click scheme was not as popular as it once was.

Merchants would rather utilize Cost-Per Action / CPA or Cost-Per Sale / CPS. These schemes are similar because affiliates receive commission or revenue share when a website reader/visitor subscribes or avails of the merchant’s products being referred by the affiliate’s site.

Say, I am your affiliate, and you are my merchant. My site will then feature your products and services. Also, I’ll be placing some ads and links that will redirect my visitors to your site. For me to earn a commission, the visitor should click your link, be redirected to your site, and buy your product or service. If that happens, you owe me a commission or revenue share.

CPA and CPS systems have little or no risk at all for both parties, merchant and affiliate. Hence, these are the preferred form of Affiliate Marketing. It is a good thing that Google’s Latent Semantic Indexing will put CPS to the next level, as it makes it risk-free. The Google’s new Indexing system, automatically finds websites with nonsensical content, or if it has “keyword stuffing”.

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Technorati Tags: Affiliate Marketing Tips, affiliate-marketing, cost per action, Cost-Per-Click, Cost-Per-Mil, Cost-Per-Sale, cpa, cpc, CPM, how to be a super affiliate

Tagged as: Affiliate Marketing Tips, affiliate-marketing, cost per action, Cost-Per-Click, Cost-Per-Mil, Cost-Per-Sale, cpa, cpc, CPM, how to be a super affiliate