History of Affiliate Marketing

Paying A Commission

The idea of paying a commission for a referred business started after the Internet and the various tools were developed.

The creator of PC Flowers & Gifts, William J. Tobin, introduced these concepts in November, 1994.

The company was launched in 1989 and remained in business until 1996. PC Flowers & Gifts started selling on Prodigy Network After the World Wide Web was introduced.

The business model was developed in such a way that it paid a certain commission of the sales to its host, the Prodigy Network.

The 1993 sales exceeded $6 million. The following year, the company developed a beta version of the website with the owner of Prodigy, IBM.

In 1995, PC Flowers & Gifts developed a commercial version of the website. It added more than 2,000 partners to their network.

The year 2000 came with the approval of the patent in the US, which was submitted in 1996.bundesarchiv_b_145_bild-f038812-0014_wolfsburg_vw_autowerk

The Japanese patent was issued a year earlier, thus being submitted a year after the US CDNOW also innovated the world of affiliate marketing in 1994.

Their idea was to let visitors review the albums they had in store, and which presented interest to the general public.

Of course, a direct link to the album in cause was available next to the comment section.

The idea arose from the joint venture of a label record house with CDNOW. It wanted to sell the CD from the website but did not want to have the store directly on the website, but have its clients place their orders on CDNOW.

  • Amazon

Amazon is one of the early starters in this business. It started in July 1996, when its associates had the opportunity to place banners or text links for their books to the Amazon home page.

For every click on the link, the associate received a commission. Although Amazon did not implement and use this system, over time it has become the most popular for this program.

 

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