
Affiliate Marketing is really an updated name for a basic practice that is probably as old as business itself: agent and referral fees. Affiliate Marketing can be as simple as having links (or banner ads) to other merchants (amazon.com, for example) located on your Website. If someone clicks through from your site and ends up making a purchase, then you earn a small commission.

Affiliate Marketing is a revenue sharing agreement between a site owner and an online merchant. With Affiliate Marketing, the Website owner will place ads on his sites that will either help sell the merchant’s products or to send potential customers to the merchant’s Website, all in exchange for a share of the profits that those particular transactions generate.
Affiliate Marketing has three basic revenue models:
For many site owners, Affiliate Marketing can be an excellent way to earn passive income. Affiliate Marketing requires no additional selling, promotion, or effort on the part of the affiliate. With Affiliate Marketing, you simply sit back and wait for the profits to start rolling in.
With the continued evolution of ecommerce models, Affiliate Marketing is no longer restricted to Website owners. Bloggers and even online forum members can also get a piece of the Affiliate Marketing action.
Not surprisingly, the largest and most active sectors for Affiliate Marketing have long been the adult, gambling, and retail sectors. However, going forward, mobile/wireless phones, travel, and finance are all expected to be major growth categories for Affiliate Marketing.
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