Affiliate marketing is a term that dates back to the mid-1990s and describes the promotion of internet businesses through affiliate programs and the marketing of these products on websites. The vendor provides the affiliate with an agreed-upon proportion of commission based on the amount of business their website generates for the merchant.
Clickbank, Paydotcom, and Shareasale, for example, have set percentage rates for affiliates that can be as high as 75% for specific products. Some people think of affiliate marketing as a sort of revenue sharing, while others refer to it as commission-based advertising.
In the early days of "affiliate marketing," it was mistakenly connected with network marketing or multi-level marketing (MLM), and as a result of this misunderstanding, many internet businesses chose the term "performance marketing" to avoid any association with affiliate marketing. In the past, this posed a significant challenge for affiliates, since many web users were suspicious of anything that resembled multi-level marketing.
It has turned out to be the most cost effective way for merchants to market their products or services online over time and with a lot of determination from those who are now established as super affiliates because it is very efficient in the fact that the affiliate has to do all the work to make the sale. As a result, many online businesses, particularly those that pioneered this form of marketing, owe a huge debt to affiliate marketing. Take, for example, amazon.com and how it has become the norm for online businesses to include affiliate marketing in many of their online marketing strategies to promote their products.
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