What Are The Essential Things To Know About Affiliate Revenue?
If you are already considered as a veteran in affiliate marketing, then you are definitely a master of affiliate revenue as well. On the other hand, if you are a newbie in this field, you might be having a hard time understanding what is affiliate revenue and how it work.
Well in fact, understanding affiliate marketing and revenue can be done by knowing the basics and essentials of it. Let us not touch the complicated parts of it yet. It may come later when you already have mastered the basic of affiliate marketing.
So, how does affiliate marketing work? You know that marketing is the general term that reflects to a wide array of researching, selling products and services, as well as other promotional activities. Marketing is also considered as the way of businesses to connect with their customers or target market. Now, what is the relationship of the term "affiliate" with marketing?
Affiliate referers to third party. Unlike in the conventional way of marketing where the customers have a direct contact with the business; affiliate marketing involves an intermediary person between the customer and business. This system works in a way that the company hires several affiliates. In the virtual world, these affiliates have websites where they can post the advertisements of the company. These advertisements, in the form of pictures, articles or links, will direct the customers to the main company's site.
With this system, the main company or the partner pays the affiliate as the compensation for directing traffic customers to the former's site. The payment can also be in the form of affiliate revenue, where the set up is that the affiliate has a share to the revenue that the main company receives from the customers directed by the affiliate. The advantage of this system is that the company only needs to hire several affiliates in order to direct traffic to its website. Here, the company no longer need to personally do that hassle of advertising and widening network by way of improving traffic.