One of the most popular methods of promotion of online businesses is with the help of affiliate marketing. In this marketing technique, an affiliate is marketed for each visitor, subscriber and customer that visits the site through affiliate marketing.

Affiliate marketing can be compared to the finder’s fees that are paid for introducing new clients to a business. This is because compensation is paid for visits (pay per click programs), registrants (pay per lead programs) and paid as commission for a sale generated (pay per sale).

The reason online business owners prefer using affiliate marketing for their advertising is there is no need of making any payment for an affiliate till results are reached. Some websites like Amazon have their own affiliate programs while other online businesses use the help of intermediaries like LinkShare and CommissionJunction.com for their affiliate marketing programs.

With affiliate marketing, it is possible to introduce your products and services to even niche markets, which would not have been possible otherwise. You can also locate strategic partners through a form of affiliate marketing called business to business (B2B) affiliate marketing. All this is available to you at no additional cost.

In affiliate marketing, there are two members involved; the merchant and the affiliate. If you own a website where you sell products or where you receive leads and pay other website owners, bloggers and email list owners for these sales or leads then you are called the merchant.

However if you have a website, blog or email list that you use for generating interest in merchants, products or services and earn commission for your efforts, then you are the affiliate in affiliate marketing.

If you intend to implement an affiliate marketing strategy to your online business, then it is better to research the various technological solutions available. Examples of such solutions are standalone software, shopping carts having affiliate features, hosted services and third party affiliate networks.

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