Affiliates
WHAT ARE AFFILIATE PROGRAMS?
There are at least three parties in an affiliate
program transaction
THE CUSTOMER
THE AFFILIATE SITE
THE MERCHANT SITE
In 1996, Jeff Bezos, CEO and founder of Amazon.com, popularized this idea as an Internet marketing strategy. Amazon.com attracts affiliates to post links to individual books for sale on Amazon.com, or for Amazon.com in general, by promising them a percentage of the profits if someone clicks on the link and then purchases books or other items.
The affiliate helps make the sale, but Amazon.com does everything else: They take the order, collect the money and ship the book to the customer. With over 500,000 affiliate Web sites now participating, Amazon.com’s program is a resounding success.
Over the past few years, affiliate programs have grown enormously in popularity, taking many interesting forms. For many Web sites that don’t deal much in e-commerce (selling products or services online) themselves, functioning as an affiliate is a good way to participate in e-commerce.