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As a person new to the techniques of generating Internet traffic and the many ways of generating an income through Internet-related behaviors, you may be interested in a glimpse of affiliate marketing. A general description of how online marketing works is easy to understand and the way to apply affiliate marketing to a business or as a business can also be easily understood. Learning to use referral marketing effectively will probably take some more time and commitment, but as you increase your understanding of this marketing technique and become more familiar with the skills and behaviors necessary to succeed, you’ll find that affiliate marketing plays an indispensable role in today’s Internet marketing endeavors.
Affiliate marketing is a tool used by businesses to increase the attention that their business sites are able to attract. The use of affiliate marketing techniques are often used along with other advertising and exposure generating techniques such as blogging, the use of search engine optimization, marketing through email messages and pay per click marketing. The main objective of all of these business tools is to attract the attention of potential customers and to reinforce the name of the business and its service or product in the minds of the customer. The business philosophy behind these techniques is that the more exposure the business is able to generate, the more potential for sales from a broader customer base.
Explanations about referral marketing can begin with the basic members of the team. There are four primary team members in affiliate marketing. A simplified explanation for each of the members roles follows. The first member of the team is the merchant. The merchant is the business owner or the retailer or the brand of product for sale. Basically, the merchant is the person who wants to sell a service or product. The second member of the team is the network. This member is a little harder to understand. The network provides choices of offers for the affiliate to use and will also assist in negotiating payment arrangements. The third member of the team is the affiliate. Of course, this partner provides the “affiliate” part of the affiliate marketing term. The affiliate is responsible for generating sales for the merchant. The final member of this team is the customer.
No discussion of affiliate marketing would be complete without some explanation about how this marketing technique works. One individual or business team becomes an affiliate when they agree to generate site traffic for the merchant. This can be done through many different types of websites such as a comparison shopping directory, personal blogs and newsletter subscriptions. The affiliate generally agrees to get paid based on the number of sales, not just clicks that the merchant benefits from because of the relationship. There are many other types of affiliate sites that merchants can use to increase their exposure and this diversity is one of the great benefits of online marketing.
Although affiliate marketing is sometimes thought of in terms of referral marketing, …