Affiliate marketing has grown quickly since its inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in 2006 was £2.16 billion in the United Kingdom alone. The estimates were £1.35 billion in sales in 2005. MarketingSherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs.
Affiliates discussed the issues in Internet forums and began to organize their efforts. They believed that the best way to address the problem was to discourage merchants from advertising via adware. Merchants that were either indifferent to or supportive of adware were exposed by affiliates, thus damaging those merchants' reputations and tarnishing their affiliate marketing efforts. Many affiliates either terminated the use of such merchants or switched to a competitor's affiliate program. Eventually, affiliate networks were also forced by merchants and affiliates to take a stand and ban certain adware publishers from their network. The result was Code of Conduct by Commission Junction/beFree and Performics, LinkShare's Anti-Predatory Advertising Addendum, and ShareASale's complete ban of software applications as a medium for affiliates to promote advertiser offers. Regardless of the progress made, adware continues to be an issue, as demonstrated by the class action lawsuit against ValueClick and its daughter company Commission Junction filed on April 20, 2007.
The other type of Amazon affiliate link I use is when I’m mentioning a product in passing and/or a new product is announced. For example, when Nikon announced the Nikon D300s we immediately posted about the news because it was a notable and anticipated camera announcement. The camera was not yet available in stores and we were not able to get a review sample yet – but it was available for Pre-Order on Amazon so we linked to it.
Ah, my favourite section. SO, by now, you guys should know that I hate crappy advice. Wellll, I feel like the Internet really let me down with affiliate marketing, because there’s so many small considerations and details that people rarely mention in the beginner guides. SO, here are some sad truths to be wary of (that I had to learn the hard way):
A third party who provides affiliate program management to a merchant. Affiliate networks provide the technology for tracking affiliate efforts, ensure that sales are properly tracked, commissions are paid to affiliates, handle reporting for both the merchant and individual affiliates and help expose the merchant to potential affiliates for their products and services. You can find a list of the more mainstream affiliate networks here.
Affiliate marketing has increased in prominence with the internet age. Amazon popularized the practice by creating an affiliate marketing program where websites and bloggers put links to the Amazon page for a product being reviewed or discussed in order to receive advertising fees when a purchase is made. In this sense, affiliate marketing is essentially a pay for performance marketing program where the act of selling a consumer on a product is outsourced across a potentially vast network.