How Does Affiliate Marketing Work?

Affiliate marketing has totally revolutionized the marketing concept. Earlier a company used to promote their products through their own web sites but today they buy prime space on other web sites for displaying their advertisement or get their products promoted by an influential affiliate marketer.
Put simply, a product is advertised online by two or three persons in affiliate marketing. The first is called the advertiser, second is the affiliate and the third is network professional.
Advertiser
The company, which searches for websites for promoting its product, is called an advertiser in affiliate marketing. Although it can display the advertisement on its own website but using other high traffic websites through affiliate marketing usually means more customers.

Affiliate
The website owner or publisher, which provides prime space on its website for displaying advertisements to advertisers, is called an affiliate website in affiliate marketing.
Affiliate Marketing Network provider
Affiliate marketing network provider plays crucial role in affiliate marketing. He gives a common platform to both advertisers and affiliates to come together. It is his duty to maintain a cordial relationship between the two.
The advertising company may have its own website but displaying advertisement on your own website is not the concept of affiliate marketing. On the other hand, an affiliate should try to generate maximum volume of traffic to its website. Only high traffic websites are able to generate business for advertisers and money for affiliates in affiliate marketing. See affiliate marketing mistakes to avoid
Phenomena of affiliate marketing
An advertiser can search for an affiliate through many ways but the best way is to use a network. The advertisers and affiliates can join an affiliate marketing network service providing company by spending a small amount. Affiliate marketing network provider advices advertisers to display their advertisements on high volume traffic websites.
It is the affiliate marketing network, which cross-checks the traffic of an affiliate site so that the advertised product gets maximum attention. The affiliate marketing network service provider takes care that the product is advertised on relevant web site. For example, if you are selling school uniforms then your advertisement should be displayed on educational web sites.
Generating revenue through affiliate marketing
When an advertisement is displayed on high volume traffic through affiliate marketing, it certainly gets response. The visitors of affiliate website may click on advertisement, leave their contact details, sign up for a newsletter, buy or show their intention to buy the product at a later date.
The affiliate gets his share according to the response and the advertiser gets probable customer for his product. We can say that the advertiser earns money by selling the product and the affiliate by response in affiliate marketing.
Revenue is shared between the two in affiliate marketing through the affiliate marketing network provider. Advertiser makes payment to the affiliate marketing network and the payment is further advanced to affiliate site owner.
The affiliate marketing network provider keeps a close watch over the response of visitors on an advertisement. In this way affiliate marketing network is also helpful is avoiding any dispute between advertiser and the affiliate.

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