One of the more recent forms of online marketing known as affiliate marketing is a kind of performance-based marketing, where in an online business compensates one or more of its associates for each viewer or contact contributed by the affiliate's individual marketing campaigns. Online research experts recommend content driven websites to make money off its traffic by enrolling in an affiliate program.
Affiliate programs or associate programs are specific arrangements wherein an online business gives affiliate websites a percentage of compensation to direct traffic to the merchant website. These affiliate websites, in turn, place links to the merchant website and are compensated based on a specified arrangement. This arrangement is typically dependent upon the number of people the affiliate can deliver to the merchant's website, or the number of people they send to purchase products or services or execute some other action that is profitable to the merchant.
Some agreements pay affiliate sites based on the number of people who view the page that contains the merchant site's banner advertisement. Fundamentally, if a particular link on an affiliate site brings in traffic or money for the merchant site, the merchant site compensates the affiliate site according to their arrangement. Considered to be an excellent way of selling products online, drafting in affiliates is not only an affordable and effective marketing strategy but also an excellent way of getting word about the merchant site.
The concept of affiliate marketing was first popularised by Jeff Bezos, founder and CEO of Amazon.com in 1996. He believed that this idea as an Internet marketing strategy would become extremely popular and grow enormously over a period of time. He initiated this concept by attracting affiliates to post links on their websites with regards to individual books that were on sale on Amazon.com.