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Affiliate Programs and How They Work

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More companies are using affiliate programs to drive traffic to their Web sites. In a 2-3 page paper, describe what an affiliate program is and how it works. In your paper, discuss the advantages and disadvantages of using an affiliate program and give at least three examples of successful affiliate programs.

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The solution discusses affiliate programs and how they work.

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Affiliate Programs, is an aspect of marketing where one website is used to drive traffic for another. The concept of affiliate marketing on the internet was first put into practice by William J. Tobin who founded PC flowers and gifts. William Tobin started the practice by paying the Prodigy network for referring business to his website.

Although e-commerce began as a sideline for many companies at the beginning, it has quickly grown. At this point, online business routinely dwarfs the traditional mortar and brick version for the same company. A substantial portion of that business is brought on by affiliate marketing. In 2006, it was estimated that worldwide, affiliates earned about $6.5 Billion. The most active market areas for affiliate marketing are adult, gambling, and retail and file sharing services.

Shopping Cart programs are examples of affiliate programs and work to allow users to purchase items on a web site. There are 2 types of shopping cart programs, licensed software and hosted service. Licensed software is a type of shopping cart application that the web site ...

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