Affiliate marketing refers to an incentive scheme set-up by online merchants to generate sales and grow their business. Basically, those who sign up as an affiliate with the merchant receive revenue share, sales commission, or a fixed rate depending on the parameters that the merchant has set up. The most common schemes are the Cost-Per-Action (CPA) and Cost-per-sale (CPS) schemes meaning that an affiliate is remunerated from a referral to the merchant only if the customer/internet user buys or subscribes to the merchants website.
Some incentive schemes work on a Cost-Per-Click basis (CPC) which means that the affiliate earns when an advert is just clicked upon (or the user is redirected in some way from the affiliates website or email to the merchant.) This is also closely linked in with the Cost-per-mil (CPM) method, where the affiliate is paid for just displaying the adverts on their site. Although these two methods only account for 1% of affiliate marketing, due to many fraudsters taking advantage of it and therefore becoming too risky for the merchant. The more common CPA/CPS schemes mentioned above bare no risk at all to the merchant.
Affiliate marketing...
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