Affiliate Marketing

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts.

The industry has four core players:[citation needed]

• the merchant (also known as 'advertiser' or 'retailer' or 'brand')

• the network (that contains offers for the affiliate to choose from and also takes care of the payments)

• the publisher (also known as 'the affiliate')

• the customer

The market has grown in complexity, resulting in the emergence of a secondary tier of players, including affiliate management agencies, super-affiliates, and specialized third party vendors.[citation needed]

Affiliate marketing overlaps with other Internet marketing methods to some degree because affiliates often use regular advertisingmethods. Those methods include organicsearch engine optimization (SEO), paid search engine marketing (PPC – Pay Per Click), e-mail marketing, content marketing, and (in some sense) display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.[citation needed]

Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer. The two forms of marketing are differentiated, however, in how they drive sales, where affiliate marketing relies purely on financial motivations, while referral marketing relies more on trust and personal relationships.[citation needed]

Affiliate marketing is frequently overlooked by advertisers. While search engines, e-mail, and web site syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies.

Compensation methods (remuneration), are pricing models and business models used for the different types of Internet marketing, including affiliate marketing, contextual advertising, search engine marketing(including vertical comparison shopping search engines and local search engines) and display advertising.