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Affiliate Basics

What is Affiliate Marketing?

Affiliate Marketing is a widespread method of promoting a website, in which an affiliate is rewarded for every visitor, subscriber and/or customer provided through the affiliate’s efforts. Compensation may be made based on a certain value for each visit (Pay-per-click), registrant (Pay-per-lead), or a commission for each customer or sale (Pay-per-Sale). Eighty percent of affiliate programs today use revenue sharing or cost per sale (CPS) as a compensation method.  Affiliate marketing is also called “performance marketing”, in reference to how sales employees are typically being compensated.



Where did Affiliate Marketing Start:

The idea of revenue sharing, paying commission for referred business, predates affiliate marketing and the Internet. The translation of the revenue share principles to mainstream e-commerce happened in November 1994, almost four years after the origination of the World Wide Web.



Here is a sample scenario to illustrate how our affiliate program works.

  1. Create your website.
  2. Apply for the ITFF Affiliate program
  3. Once approved, place one of the tracking links on your website. These links contain your affiliate ID so we know who gets the commission for any sales.
  4. When your “surfer” or site user clicks on the link on your Web site (this is called “Click Through”), a cookie is placed on their computer. If a purchase is made on by this computer within the duration of the merchant cookie, then you get a commission!



Affiliate Marketing Acronyms:

Here is a short list of the many acronyms used by Affiliate Marketers. After a while you will get to know what they all mean – they are all important so do take a quick read through….

ABestWeb – The Internet’s Leading Affiliate Marketing Forum!
Business to Business.
Business to Consumer.
Average pay out per hundred clicks.
Earning per thousand impressions.
Conversion Ratio.
Cost Per Action.
Cost Per Click.
Cost Per Lead.
Cost Per Thousand.
Cost Per Sale.
Conversion Rate.
Customer Relationship Management
Cascading Style Sheets.
Click Through Rate.
Real Simple Syndication

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