How Does Affiliate Marketing Work?

[dasswadesh]

Affiliate MarketingAffiliate Marketing is a popular method of promoting web businesses in which an affiliate is rewarded for every visitor, subscriber and/or customer provided through his efforts. It is a modern variation of the practice of paying finder's-fees for the introduction of new clients to a business. Compensation may be made based on a certain value for each visit (Pay-per-click), registrant (Pay-per-lead), or a commission for each customer or sale (Pay-per-Sale).
The most attractive aspect of affiliate marketing, from the merchant's viewpoint, is that no payment is due to an affiliate until results are realized.

Some e-commerce sites, such as Amazon.com run their own affiliate programs while other e-commerce vendors use third party services provided by intermediaries like CommissionJunction.com, and LinkShare.com to track traffic or sales that are referred from affiliates. Some businesses owe much of their growth and success to this marketing technique.

[Kajal]

There are three to four parties involved in affiliate marketing: the advertiser, the publisher, the customer and often an affiliate network. The advertiser provides a product or a service. He looks for publishers to further distribute his product. The publisher is the party that will advertise for the advertiser. An affiliate network is the intermediary between the advertiser and the publisher. These 3 parties with the customer form the basis for affiliate marketing.
For more details :
https://www.ecommercewiki.org/Affili...marketing_work