The Different Types of Affiliate Marketing

Affiliate marketing is a broad term that refers to a commission based payment method.  Basically speaking, an affiliate promotes products or services that are provided by a merchant and receives a commission (or finder’s fee) when their efforts result in a sale. Internet-based affiliate marketing dates back to late 1994, when many e-commerce sites started employing the affiliate sales models and finding that they produces fantastic results. Currently, affiliate marketing is a very important player for most e-commerce merchant’s marketing strategy.

When an affiliate joins in with an e-commerce merchant of some sort (be it a subscription service, a shopping site etc.) payment is received through referrals done from the affiliate’s website, usually through one of the following methods:

1. Pay-per click systems  basically, the affiliate displays advertisements on their site and is paid when a customer or internet user clicks on the link to that website
2. RSS feeds or blogs – even personal sites can sit under this category. Blogging is fast becoming a staple form of marketing and promotion, and affiliate marketing pairs well with this form of online communication
3. Comparison sites and shopping directories – such as review sites or legitimate advertising sites
4. Loyalty sites – this is when a reward system is in place via a cash back or points back system (or charitable donations).  This is also referred to as Incentive advertising
5. Coupon sites that focus strictly on marketing and promotions
6. Email lists – legitimate email lists to subscribers of the affiliate’s website etc… These should be opt-in lists, NOT spam
7. A registration path – when a person registers with a specific site, be it for a newsletter or subscription, offers from other companies are represented and advertised
8. Networks – there are many affiliate marketing networks. Some even function on a multi-tier or multi-level marketing set up.  These offer more opportunities for affiliates, but also more competition in the marketplace.

Hopefully this little list will help you understand a bit more about the different types of affiliate marketing.  I’ll be covering each one of these methods in-depth over the next few weeks, so stay tuned.

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