Affiliate marketing has lots of business benefits but it’s also important to be aware of potential drawbacks too. From an advertiser perspective, it can be one of the most effective ways to drive traffic to your website. It’s a well-known concept that people need to know, like, and trust you before they’ll buy from you. In the case of affiliate marketing, they just need to know, like, and trust your affiliate. You benefit from their credibility and existing relationship with their audience. So, instead of having to go out and build something from scratch, you get a head start on sales.
While these models have diminished in mature e-commerce and online advertising markets they are still prevalent in some more nascent industries. China is one example where Affiliate Marketing does not overtly resemble the same model in the West. With many affiliates being paid a flat "Cost Per Day" with some networks offering Cost Per Click or CPM.