Affiliate Marketing Relationships

Affiliate marketing is a business model that works on the relations between four key pillars: the merchant, the network, the publisher and the customer.

The relationships between these four individuals or companies offer a form of rewarded performance based on marketing.

The business plan and the market have expanded so much that they have developed ties of players. They include third party vendors and affiliate management agencies.

The business model is based on the product of the retailer, the brand, and named merchant –commercialised on the network – which contains a list of affiliate and takes care of the payment. Others are the publisher of the commercialised product and the customer, who pays for the product or the service.

On a certain degree, affiliate marketing is very similar with other types of Internet marketing because it is based on the same type of advertising methods displayed regularly to attract customers.

Some of the methods include, but are not limited to search engine optimisation, Pay Per Click (also called the PPC), content marketing, e-mail marketing and display advertising.

It is important not to confuse affiliate marketing with referral marketing. Referral marketing is usually based on instances where third parties attract the customers to the retailer.

The only difference between the two types of marketing is the way customers choose the product.

With affiliates, their choice relies on financial motivation. On the other hand, referral marketing involves choosing a certain brand or a certain product based on confidence and recommendations forwarded from sale statistics.

Advertisers often overlook this type of affiliate marketing advertisement. The broad palette of advertising tools they use allows them to attract customers in big numbers.

Affiliate marketing is a small niche market, with a lower profile. Some retailers combine these strategies to cover a bigger palette of the customers.