• Affiliate marketing is a type of performancebased marketing in which a business rewards
one or more affiliates for each visitor or
customer brought by the affiliate's own
• It consist of 4 core players namely :
• Affiliate marketing relies purely on financial motivations to drive
TYPES OF AFFILIATE MARKETING
•Pay per performance
•Pay per sale
•Pay per lead
Advantages of affiliate Marketing
— Online merchants get free ad space and will only pay for
proven results (pay per sale, pay per click, pay per lead).
— Affiliates, on the other hand, require only an ad-space to
promote the merchants’ products, and thus can enjoy watching
the beautiful sunset while earning cash.
— Advertisers can promote a product to a vast audience, giving
their brands more exposure and recognition.
— Marketers can collaborate with affiliate networks and can
pretty much take care of the execution stages, giving the merchant
little to no bother during the procedure.
— Consumers that come from the affiliate’s site can provide
important information concerning the latest trends and demands
Disadvantages of affiliate Marketing
— False advertising on the affiliate’s website can destroy a
merchant’s reputation. More and more affiliates are engaging in
this kind of scheme.
— Merchants can suffer from commission costs. Set up and
maintenance can also mean more cash outflow for the merchant
from having too many affiliates.
— Affiliates risk not getting paid. The twisted merchant may
simply leave and close down the program without paying the
— Some affiliates are tricked into a program where they can get high
commissions and then get less than what the merchant has actually
promised. Some programs require the affiliate to give cash for
— There are also some unscrupulous individuals who hijack affiliate
links, stealing their commission in the process.
— With its high payoff potential, affiliate marketing has also become
a target for scammers and devious individuals wanting to earn from
other people’s hard work. These people simply take advantage of the
internet’s mask of anonymity.