Affiliate Marketing is the revenue sharing between online advertisers/merchants and online publishers/salespeople, whereby compensation is based on performance measures, typically in the form of sales, clicks, registrations, or a hybrid model. The advertisers/merchants are typically referred to as affiliate merchants and the publishers/salespeople are referred to as affiliates.

Benefits of affiliate marketing include the potential for automating much of the advertising process (accepting & approving applications, generating unique sales links, tracking & reporting of results) and payment only for desired results (sales, registrations, clicks).

Paying only for performance shifts much of the advertising risk from the merchants to the affiliates, although merchants still assume some risk of fraud from partner sites.

Affiliate Marketing Tools

Affiliate Marketing Tools are the software/services that, at a minimum, provides tracking and reporting of commission-triggering actions (sales, registrations, or clicks) from affiliate links.

Affiliate merchants that run 100% in-house affiliate programs need to find--and possibly customize--affiliate software to handle transaction tracking and reporting. Solutions range from free and almost-free scripts to expensive software packages.

Affiliate merchants that use affiliate networks do not have to directly manage the affiliate software, although integration must occur between the affiliate merchant's site and affiliate network's software.

Affiliate Networks

Affiliate Network is a value-added intermediary providing services, including aggregation, for affiliate merchants and affiliates.

For affiliate merchants, services can include providing tracking technology, reporting tools, payment processing, and access to a large base of affiliates.

For affiliates, services can include providing one-click application to new merchants, reporting tools, and payment aggregation.

Affiliate Program Guide

Affiliate Program Guide includes guide and software that help you profit from affiliate programs.