A Cursory Look at Affiliate Marketing
When someone mentions affiliate marketing, a cost
per performance ratio of home based pre selling comes to mind. This
part of e- commerce has steadily grown over the years and is now
recognized by market leaders as a very effective alternative to augment
a company's selling function.
Pre-selling is advertising. The affiliate marketer
advertises the merchant's product or services in his website that in
turn expands the visibility effort of any company in trying to reach
the customers. Advertising relies much on the numbers game. The more
exposure that a product gets, the greater chance it has to generating
more sales. Merchants are capitalizing on this with very favorable
It has continuously been an effective channel in
attracting new customers thereby delivering incremental sales growth
trough the added exposure. It also caters to online shoppers who prefer
to shop in their own homes. What makes it more attractive to customers
is that online shopping is perceived to be less stressful. Online
shoppers does not need to beat the traffic, spend on gas and time to
get to and from their shopping stores. It also provides a more
personalized contact with the seller that is unlike many of the
For many customers, an affiliate website is a
virtual shopping store that provides the products and services with the
convenience that is different form those in the shopping malls. It has
also turned out to be a virtual bargain shop where specials and coupons
are presented online. A strategy that have been paying dividends to the
consumer, the marketing affiliate and the merchant.
Through the years, affiliate marketing has had its
own evolution. The market conditions and forces that created it have
also put in it the demands to grow with the current trends and
sometimes the abuses that are placed on it.
In 1996 Amazon dot.com. recognized the value of
online shopping and decided to implement this online marketing
strategy. The idea is for a small website owner to place amazons
advertising on it. The website owner then creates several links and
banners to attract potentials online shoppers. The marketing affiliate
will earn commission trough the pay per referral scheme. It was
successful and other company's wanting to utilize this evolution of
e-commerce caught on. Today, the problem is that it almost sounds too
good that it could not be true.
It has now evolved to be a sophisticated marketing strategy that
accounts about 5 to 25% of online sales that includes some of the world
best loved brands.
It now accounts millions of onsite marketing
affiliates with thousands of sites and accounts about billions of
dollars in sales.
Affiliate marketing continuos to grow and with
that, a continuos search for refinements and developments are being
placed to direct a more reliable and accurate means to measure success.
Changes are being placed. Search engines are
proving to be one of the most important cogs in the industry of
affiliate marketing. Spam and spam like activities are being detected
and discouraged where the penalty ranges from downgrading the relevancy
ratings of the site to delisting.
As these improvements and changes are taking
place, the customer can expect better servicing in the future as the
competition to attract them is heating up. Marketing and merchant
affiliates will be finding other ways of attracting more customers to
stay in the game, while network providers will be forced, if they are
not yet now, to provide better tracking services, all to the benefit of