Affiliate programs FAQs
Q. I understand what advertisers do and I know what vendors are, but what is an affiliate?
A. Basically, an affiliate is a Web site that sends business to a merchant or other type of e-commerce site. Users are directed from an affiliate site to other sites by way of links or banner ads. Affiliates are also known as publishers and include all types of Web sites. Some affiliates are created for the sole purpose of affiliate marketing but that need not be the case. Regular merchant sites which sell their own products can also be affiliates. A number of bloggers have recently become viable affiliates.
Q. Who keeps track of Internet activity like hits and sales to make sure affiliates get paid?
A. Usually everyone involved will keep track one way or another. Affiliates need to know how many hits they’re getting and what kind of traffic they are generating for advertisers and merchants. Advertisers and merchants need to know where their business is coming from as well. So, everyone involved tracks user activity to make sure no one else is getting away with anything. Most affiliate networks will be overseen by an affiliate program provider or manager. The provider or manager is the one actually responsible for tracking traffic and making sure everyone gets paid what they deserve. Quality program providers will also act as mediator among affiliates, advertisers and vendors. They will also keep in close contact with affiliates and provide them with promotional and training materials as well as keep them up to date on marketing trends.
Q. How and when did affiliate marketing begin?
A. Affiliate marketing can trace its roots back to before the internet was even around. Back then the concept was known as revenue sharing. It involved companies paying commission to other companies or individuals in exchange for referrals. The principles of revenue sharing were introduced to the world of ecommerce in 1994 when CDNow launched a program called BuyWeb. This program made it possible for CDNow to sell products by way of other Web sites. Music oriented sites would include lists of albums available on CDNow and when costumers clicked on the link to buy the CD, the Web site earned a commission. Affiliate marketing was in effect in the online adult entertainment industry even before BuyWeb was introduced. A company called Cybererotica implemented a pay-per-click program almost as soon as the World Wide Web was born in 1990.
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