Week 5: What Is Affiliate Marketing


According to Minterest (2015) Affiliate Marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s own marketing efforts.

There are actually different types or classes of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate marketing programs, however, falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP). (Learning Affiliate Marketing, 2015)

Pay Per Click (PPC)



In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever someone clicks through the merchant’s banner or text ads.(Learning Affiliate Marketing, 2015)

Pay Per Performance (PPP)

In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an action.(Learning Affiliate Marketing, 2015)

However, the affiliate marketing program also has its obverse and reverse side.

Advantages (Small business. 2015)

Merchants gain a wider place to sell their products and services, resulting in more customers and more sales.

Merchants can gain more customers without spending valuable time in searching for them. Programs that track compile statistics from affiliate sites provide reliable and current client behavior on trends and demands at no extra cost.

These are only some of the advantages of affiliate marketing. However, it is also best to be aware that this online business also has some disadvantages. (Small business. 2015)




Image.(2014): Affiliate Marketing. Available from: http://mymagentoextensions.net/5-tips-for-effective-affiliate-marketing/.Accessed on: 27.10.2015

Learning Affiliate Marketing. 2015. Affiliate Program Types.Available from: http://www.learnaffiliatemarketing.co.uk/affiliate-program-types.html. [Accessed on 28.10.2015]

Minterest.2015.Affiliate Marketing. Available from : http://www.minterest.org/what-is-affiliate-marketing-and-how-does-it-work/ [Accessed on 28.10.205]

Small business. 2015. Advantages & Disadvantages of Affiliation Marketing Models. Available from: http://smallbusiness.chron.com/advantages-disadvantages-affiliation-marketing-models-25325.html. Accessed on:28.10.2015



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