Affiliate marketing programs are also known as pay-for-performance programs, partner programs, or affiliate marketing programs. The e-business that runs the affiliate program is referred to as the merchant or advertiser, and the e-business that engages in it is referred to as the affiliate, associate, or publisher.

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Three methods exist for making money with associate marketing:

1) Pay per Click or Cost-per-Click affiliate programs: A certain amount of money is deposited into the affiliate's account each time a prospective customer "clicks" away from the affiliate website and visits the merchant's website. Depending on the merchandise and the commission amount, this sum can range from pennies to dollars.

2) Pay per Lead or Cost-per-lead affiliate programs: The retailer gives the affiliate a predetermined amount for each visitor who clicks through and completes an action at the merchant's website, such as registering with the website or choosing to receive emails.

3) Cost-per-sale affiliate programs, also known as pay-per-sale programs: Whenever a transaction is made as a

Amazon's Story

The largest bookstore in the world has one of the best examples of an affiliate scheme. (called their associate program). Over a million associates now work for Amazon! Every second of every day, more than a million websites are constantly promoting their products. Over 40% of Amazon's revenue comes from its affiliates scheme. That amounts to annual income of more than $3 billion! Another (fairly modest by comparison) example is Zeald, which gets over 50% of its income from a special affiliates scheme. Though admittedly not in the billions, that amount represents yearly income in the millions.

Affiliate networks are used by thousands of different e-businesses, including Barnes & Noble, Dell, 1-800-Flowers, Rackspace Managed Hosting, etc.

Affiliate programs as a tool for marketing

The two main benefits for retailers

1. Directly connect marketing efforts to leads or purchases.

2. The customer only pays for outcomes.

The following are the two main benefits of affiliate marketing: 1. An additional source of income for affiliates who also offer goods or services

2. The main source of income for an affiliate that provides information or amusement

Two Methods for Running a Successful Affiliate Marketing Business

1. Obtain a sizable and extensive group. For instance, the Amazon Associates initiatives have more than 1 million participants, including:

RVPart is a company that sells motorhome and recreational vehicle components.

Click here to learn ways on making money with affiliate marketing