Affiliate marketing is a business partnership that benefit both parties (the merchant and web publishers) where one is compensated for every person provided through his effort
It combines sharp performance incentives with the broader efficiencies of online advertising. affiliate marketing rewards is usually purely performance. It involves SEO, PPC, email, social, content marketing
This type of marketing is considered low risk to the merchants because commission is only paid when the desired task is achieved like purchase so the merchant is sure that they will get the desired result so that they can shoulder the cost
Definitions
A merchant is the web site seeking to sell their goods or services through online advertising.
A publisher is a web site that gives links to its visitors, these affiliate links make the underlying content more useful while also providing payment to the publisher.
A network connects merchants and affiliates. Most merchants rely on networks for tracking, administration, and accounting purposes to record which users clicked which links and made what purchases; to provide a secure web site for affiliates to obtain links and check results; and often to provide efficient consolidated payments to numerous affiliates each month.
When a merchant joins a network, the merchant can waive most such rules or add other requirements of its own
Advantages
It provides a wider market range for the businesses that venture into it
Gain customers without searching for them
Programs tracking affiliate sites provide client behavior on trends and demands statistics free of charge
Affiliate marketer is their own boss and are able to work when it’s convenient and favorable for them
Disadvantages
Costs there is high commission, set up and maintenance fee costs that are eating into the profit
Lack of keeping their word affiliates are promised high commission and after 1 or 2 weeks drop them
Hackers link hijackers disrupt the affiliate links and get paid for the job rather than the affiliates