Affiliate Marketing: Profitable and Consistent
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Four years after the Internet was born, an online company called CDNOW started the online transaction called “BuyWeb”. Purchases are done by clicking the item on their website, that you are interested with. Also, it functions independently from a storefront.
The CDNOW system is the first profit-earning system of affiliate marketing. After the world seen its success, a lot of online entrepreneurs followed the system of CDNOW, one of which is Amazon.com. Today, Affiliate Marketing has made its name in the marketing industry due to its consistent system of advertising and selling. Moreover, this strategy has been a vital part of huge companies’ strategy. It is effective, cheap and has little or no risk at all.
The most common scheme used in affiliate marketing is CPC or Cost-Per-Click. In this system, the affiliate reels in commission for each redirected reader to the merchant’s website. Affiliates post ads or link on their website that readers click, and they are sent automatically to merchant’s page. CPC is rarely used by merchants as they are a number of fraudsters who take advantage of the scheme. These are the dirty tactics used in CPC: false advertisement that is similar to a bait, ad-ware that can infiltrate the visitor’s system, forced click technique, “keyword stuffing”, tracking cookies and many more. Cost-per-click system has been losing its spark because of the frauds.
Merchants now rather use CPA (Cost-per-action) or CPS (cost-per-sale) techniques – both being very similar in that an affiliate receives commission or a revenue share when a person subscribes to the merchant or buys a product from them from being referred by the affiliate’s site.
Let say, you are my merchant and I am affiliated with you. I will be blogging about your products and services, and I will also post a link or ad that would redirect my interested visitors to your site. If that visitor who was redirected to your site bought a product from you, I shall receive a commission or a share from your revenue.
CPA and CPS systems have little or no risk at all for both parties, merchant and affiliate. Hence, these are the preferred form of Affiliate Marketing. It is a good thing that Google’s Latent Semantic Indexing will put CPS to the next level, as it makes it risk-free. The Google’s new Indexing system, automatically finds websites with nonsensical content, or if it has “keyword stuffing”.
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