Affiliate marketing is an internet-based sales solution in which a company remunerates a cooperation partner on a success basis with a commission. The company acts as an advertiser and provides advertising material that the advertising partner (affiliate) can use. The affiliate receives a commission for arranging visitors (customers or prospective customers) who reach the company's website via the advertising media.
In affiliate marketing, dealers and sales partners cooperate. The retailers make their products and services available via the affiliate system and enable the affiliates to market the goods by providing the necessary technical aids. These can be advertising banners or text links that are provided with a corresponding source code by which the clicks on a banner can be attributed to a specific affiliate. Visitors access the merchant's website via the banner.
The affiliates use the affiliate system to cooperate with the shop operators (dealers). You benefit from the sale of goods and services and receive a commission for the mediation. This commission can be structured very differently. A distinction is made between different payment systematics.
With the cost-per-click, the commission is paid for each click on the advertising material. Various techniques such as an IP lock prevent a single user from counting multiple clicks on a banner. The affiliate could otherwise very quickly earn a golden nose at the trader's expense.
With Pay per Lead, the commission is paid per contact by the customer. A lead can be, for example, the request for advertising material by a customer or the entry of an e-mail address for sending a newsletter. Pay per lead is not very suitable for very advice-intensive goods that are marketed online free on itunes.
With pay per sale, the commission is paid as soon as the customer uses a service or buys an item. The affiliate receives a certain portion of the remuneration in the form of a commission.