The concept of Affiliate Marketing was pioneered and made popular on the web by Amazon.com initially. The website was launched in July 1996, and it launched its Affiliate Marketing program soon after. The website now has a count of over 450,000 sites in its network. In India, sites like shaadi.com and baazee.com offer affliliate marketing schemes.

The concept of Affiliate Marketing really isn't new, though Amazon pioneered it. One of the oldest practitioners of Affiliate Marketing is Amway. There are some sites that work on the premise of variable volume discounts. The benefit of Affiliate Marketing is that the marketers spend money only when their particular performance objective is met.

While some affiliates pay only when a sale is made, some of the other affiliates such as merchants selling big ticket items like cars, or marketing services like credit cards, have modified the model and pay for qualified leads.

In fact, the compensation schemes used in the Affiliate Marketing model are as varied as the merchants themselves from a 15% commission to a 1% depending on the product involved.

 

~ Category editor Sakina Kadiwala. copyright data indianchild.com

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