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Revenue Sharing: Affiliate Marketing

By Larry Sabler


Affiliate marketing is a sure money-earner. Anyone can succeed in this type of business if he is determined, resourceful, and willing. How can you profit from affiliate marketing? Firstly, this type of business if a joint effort of two businesses. That is, affiliate marketing is basically a relationship between two businesses in which, the common purpose is to increase visitor traffic. The relationship is between an Advertiser and a Publisher.

The relationship of both is based on revenue sharing. The Advertiser will put ads in the Publisher's website. The ads provide links to the Advertiser's website. The Advertiser will pay the Publisher for every click a visitor makes on the link. The Publisher can be paid based on any of the following:

The Cost Per Click

The Publisher will be paid by the Advertiser every time a visitor ends up in the latter's website via the link in the Publisher's page. So this means that the Publisher's content or products attracted the visitors in the first place. And while the Internet user is in the website of the Publisher, this Internet user will be aware of the existence of the Advertiser's website.

In the ads or banner of the Advertiser, there will be one or two sentences that will entice the Internet user to visit the Advertiser's website. Of course, the Advertiser may have several Publishers and it will have a system that will identify which Publisher has referred the visitor.

CPL

In this arrangement, there is a need for the visitor to sign up or fill a form before the Publisher can be paid. When the visitor signs-up, he becomes a lead for the Advertiser to more target clients. There is a bigger pay for leads since they are more valuable than mere visitors.

Cost Per Acquisition

This refers to when a visitor from a Publisher's site purchases a product or service from the Advertiser. A mere visitor can become a paying customer. So the Advertiser will earn money. The Publisher will get a portion of the Advertiser's profit.



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