By Greg Simon



In the realm of business, one of the most effective and efficient tool that is easily accessible for everyone would be the Internet. Business people could easily market and sell their products online. One of the well-loved system would be "Affiliated Marketing", which is a method that allows affiliates to re-direct their site visitors to the merchants website, where they could avail of the products and services.

Affiliated marketing either pays the affiliate through a pay-per-click program (the affiliate receives money every time an advert is clicked) or a pay-per-sale program (the affiliate receives commission every time a posted advert on their site generates an actual sale or subscription.) Generally, the pay-per-sale program (also called cost-per-sale, or CPS) is the tried and trusted form of affiliate marketing used.

It was four years after the Internet was launched when Affiliate Marketing began to bloom. This is due to big companies such as CDNOW and Amazon.com. Google also has a program that is usually associated with affiliated marketing, which is Google Adsense. However, Adsense is not really a part of affiliated marketing since the ads placed on the subscriber's site is in accordance to its theme or context. In addition, Google does not do direct selling of a specific product, it generate profits in other ways.



This Affiliate marketing is very cost-effective, since the affiliate and the merchant does not have to pay anything to each other, until there is a sale. It is only when a successful transaction takes place that the merchant has to give a certain percent of the revenue to the affiliate.

Pay per click (or cost-per-click) as I have mentioned above can present a risk to the advertiser or the merchant. Thus, merchants try to avoid this system, for they are investing money for the clicks without the assurance of generating a sale. Hence, the cost-per-sale (CPS) system is the preferred scheme, since it has very little or no risk at all for both parties.

About the Author:

0 comments