Affiliate Marketing

Traditional marketing techniques surrounding advertising are normally the result of the supplier or manufacturer paying for a specified space in a magazine or ‘slot’ on the radio or television. The effectiveness or success of such advertising campaigns will largely depend on their objectives in the first place but it is not unusual to consider changes in sales figures or increased brand awareness as an indicator of performance.

The impact of the Internet initially provided the same kind of sales processes to facilitate advertising messages in the form of banners, links and ‘click through’s’. The Internet has also allowed for a change in role between the supplier, advertiser and the end consumer. No longer does the supplier have to pay for advertising prior to any guarantee of sales performance. No longer does a potential advertiser have to sell or guarantee certain viewing or circulation figures to secure advertising revenue in advance. The Internet allows for one site to link to another through basic links, more advanced redirects or banner advertisements. The Internet allows for such traffic to be monitored through site logs and server logs which record the movements of people and their web browsers.

The increased ability to monitor Internet traffic and consistent increases in technological development has enable Internet Websites to encourage ‘Affiliate Marketing’ techniques to drive traffic and increase sales revenues in return for a commission payable at the point of sale rather than as a result of direct advertising space. This change of direction has enabled smaller websites (often operated by end consumers rather than companies) to advertise or ‘affiliate’ themselves with other mainstream providers in return for a marginal income from any sales that are generated. Larger suppliers often consider this type of advertising as the Internet equivalent of ‘Word of Mouth’ recommendation that can be particularly powerful if directed at the right customer segment. It also reduces the risk of perceived advertising expenditure as the costs are directly related to sales and bottom line performance.

Such affiliate marketing techniques are popular across a range of different Internet sites. Visit www.templatemonster.com who provide website design templates for businesses and individuals. Template monster openly offer a 20% commission on revenues that are generated as a result sales via links from affiliate members websites.

Amazon offers a very similar type of membership called ‘Amazon Associates’[1]. Any books sold by Amazon as a result of a customer visiting them as a result clicking on an associate’s link will earning that associate 5% of sales. The percentage rises as sales increases, which for some website may prove a popular incentive to advertise Amazons Services.

[1] http://associates.amazon.co.uk/gp/associates/join/main.html/026-7534396-8010854