The Basics of Affiliate Programs and How They Work
Internet is growing at a rate faster than ever. It’s exploding like a supernova and is bound to be an attraction for those who seek for a bigger market share everyday. The increasing access of internet to common man and its appealing ease has attracted industries to affiliate their services using web sites. This concept emerged as a great boon to industries, customers and the intermediate affiliates which are the three key players of the affiliate programs.
The mechanism is very straightforward; though the technology behind may need some complex tools. The mechanism basically involves a merchant which pays the money to an affiliate for providing him the required service. The service usually involves the customers, web traffic or simply visitors. In websites, for example, the ads displayed are for merchant’s web site which pays the affiliate web site for traffic redirection. This is just a form of a new era of what is known as e-commerce.
A simple idea initiated in 1996 has now taken the form of a whole new subject and source of income for many people. The websites which can not offer their own services become affiliate and participate indirectly in the e-commerce. The implementation also requires the global unification and existence of a payment system which can deliver money in no time with complete trust and security.
This is implemented in the form of a payment gateway site which handles secure electronic money transfers throughout the globe via internet. A merchant can pay the affiliate using pay per click, pay per lead or pay per sale manner through the payment gateway.
The basic difference in the above three ways is that in pay per click only clicks on the merchant’s site link are counted, whereas pay-per-sale requires that the customer also buys something after he is redirected to the site from affiliated site. Affiliate programs have not only benefited sellers, it has benefited buyers too.
There are a lot of web services that are now offered free of cost, because the source of income are the ads that pop around the web page. Such a great 360 degree benefit has offerings that in turn help scale and drive the internet itself.
Apart from these key players, brokers; which are people who help affiliates to get chance to serve merchants are also benefited. This forms a complete affiliate program network on the internet. Hence, affiliated technology has emerged as a ‘win-win’ web technology that is benefiting all players associated with it.