The heart of any affiliate marketing program is that you agree to use your website or blog to drive traffic to an online advertiser’s website. Each time that you successfully deliver one of your website’s visitors over to the advertiser, and then that visitor completes the action requested by the advertiser, you’ll get paid.
Affiliate advertisers are also often referred to as “merchants”, while the web sites promoting the merchants’ offers are often referred to as “affiliates” or “publishers.”
This type of advertising is unique to the online marketplace because it relies on the precise tracking of customer clicks to determine when and where commissions are owed.
Commissions are paid from the advertiser to the website publisher affiliate based on a “cost per action” (CPA). This means that either a fixed dollar amount or a percentage of each sale is paid to the affiliate if a customer takes an action specified by the advertiser. These actions usually include clicking on a link, submitting information such as contact details or a zip code, or most often, completing a purchase of the advertiser’s products.
The advertisements provided to the affiliate by the advertising merchant may be text-based or graphic but they always contain a tracking code that enables the advertiser to track where the sale came from.
by Scott Fox
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