Imagine telling an advertising agency that you will pay them only when you get leads from an ad. Or, perhaps you suggest paying them based on the sales that you make because of exposure of an ad. Besides having difficulty measuring these outcomes, chances are the agency will not take you seriously.

Approach a web site owner and he or she may actually consider your offer. The Internet enables you to pass this off through a marketing method called affiliate marketing - an effective way to increase your web site’s exposure, identify new customers and increase sales. According to Forrester Research, affiliate marketing is the most effective of all online marketing methods.

With an affiliate program you offer affiliates an incentive to perform a particular outcome. This outcome may be to generate customer leads for your business, increase ‘clicks’ to your site or improve sales - from a banner ad, text link, graphic or other means such as a newsletter. The incentive is usually a fee, provided as a flat rate or percentage depending on your affiliate program objectives.

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Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. Examples include rewards sites, where users are rewarded with cash or gifts, for the completion of an offer, and the referral of others to the site. The industry has four core players: the merchant (also known as 'retailer' or 'brand'), the network, the publisher (also known as 'the affiliate'), and the customer. The market has grown in complexity to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third parties vendors.

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Affiliate Marketing is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. It is an application of crowdsourcing. ...

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