The Internet has altered the way we do business in the same way that it has altered so many other aspects of our culture. What began as a military computer networking project that evolved into ARPANET, which connected a number of institutions across the United States, has evolved into a global necessity for both individuals and corporations. This has resulted in a shift in business practices. In reality, few, if any, corporate tasks today are not influenced by the Internet in some way, and this is especially true in sales and marketing. What comes to mind when you think of online marketing? Although search engine optimization and e-mail marketing are likely at the top of your list, there is another marketing tool that you may be forgetting.
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Affiliate marketing is a rather simple and clear event in which one firm links with another, placing an ad link on the second company's website, and paying that company for every sale made on the seller's site by a visitor referred over from the affiliate site.
It's a stable, mutually beneficial partnership. Customers are directed to the merchant by the affiliate, who is compensated for the traffic. Revenue sharing is a type of business arrangement in which the seller pays a commission for sales leads. It has been in some form or another for as long as large-scale sales operations have existed. It came into the realm of ecommerce through the adult entertainment sector, much like so many other advances. While it may have started with a company named Cybererotica, by 1994, a music company called CDNow and its BuyWeb Program had brought the notion into the mainstream of the Internet.
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