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Wednesday, April 13, 2011

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How Does an Online Affiliate Marketing Program Work?

By Heather Mark, eHow Contributor

Who Initiates an Affiliate Marketing Plan?

I Want To Become A Super Affiliate Now!

The purpose of affiliate marketing is to use one website to drive traffic to another site. Say, for example, Joe the Blogger sets up a website about news and current events. He wants to make money from his website so he sells advertising space on his page, but no one will advertise unless people click on their ads. Since he needs a lot of content, he decides to get other people to write his content for him. But he needs to give his writers some incentive to work for him, so he sets up an affiliate marketing program.

How Does the Affiliate Marketing Plan Work?
The incentives he chooses to provide to his writers might include paying them a small stipend or sharing some of the advertising revenue. He then offers another bonus by paying out a little bit more if a writer brings in more writers. He does this because the more writers he has, the more content he will generate, thus driving more traffic to his advertisers and bringing in more money to his business.

The Spam Controversy

Because affiliate marketing can be a very passive way of earning income, many websites have been flooded with affiliate marketing links. Because of the popular keywords used, they end up as popular search results on the search engines. This is aggravating to both people searching the internet for information and the search engines themselves.

In 2005, Google became so aggravated by abusive "Spamdexing" that they would delete websites that were veiled affiliate marketing schemes or send them to the bottom of the search results. Because a site without traffic is a site that isn't making any money, websites must be careful to provide valuable content, not just marketing jargon.

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History of Affiliate Marketing

Amazon.com is usually credited with inventing the affiliate marketing philosophy. In 1996, it started an "associates" program which is now almost half a million merchants strong. What Amazon would do, was have small websites register with them so they could place links or banner ads on their site. When a customer clicked on one of the Amazon ads, the small website owner was paid a commission for driving traffic to Amazon.

Read more: How Does an Online Affiliate Marketing Program Work? | eHow.com

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