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Affiliate Marketing Services

Affiliate marketing services are an internet method of promoting participating web businesses in which an affiliate marketing services member may be rewarded for one of the following categories of web surfers: visitor, subscriber, customer, and / or sale provided through the affiliates promotional efforts. Compensation or commission may be made based on a certain value for each exposure (CPM), unique visitor (UV), registrant or new customer (Pay per lead), sale - usually a percentage, Pay per sale or revenue share, or any combination of the above. Web based merchants quite like affiliate marketing services because it is a proven "pay for performance model", meaning the web based merchant does not incur a marketing expense unless specific marketing strategy results are realized. Many on-line businesses owe much of their growth and success to this type of marketing technique; this applies especially to small and midsize businesses. However, unlike display advertising, affiliate marketing services is not easily scalable.

Many web based merchants run their own affiliate marketing services while others use the third party services provided by intermediaries to track traffic or sales that are referred from affiliates. Merchants can choose from different types of affiliate marketing services management solutions including: standalone software, hosted services, shopping carts with affiliate features, and third party affiliate networks.

Affiliate marketing services has grown quickly since its conception. The e-commerce website, viewed originally as a marketing toy in the early days of the internet, soon became an integrated part of the overall web based business plan and in some cases grew to a bigger business than the existing offline business.

According to one report, total sales generated through affiliate networks in 2006 was over £2 billion in the UK alone. The estimates were £1.35 billion in sales in 2005. The scope for affiliate marketing services includes retail, personal finance, gaming and gambling, travel, telecom, internet marketing education offers, subscription sites, and other on line lead generation, but it does not include contextual ad networks such as Google AdSense.

Currently the most active sectors for affiliate marketing services are the adult, gambling and retail sectors. The three sectors expected to experience the greatest growth in future as web users become more familiar with buying on-line are the mobile phone, finance and travel sectors. Hot on the heels of these are the entertainment, particularly gaming, and internet-related services, particularly broadband, sectors. Also several of the affiliate solution providers expect to see increased interest from business to business (B2B) marketers and advertisers in using affiliate marketing services as part of their total marketing mix. Of course, this is constantly subject to change.

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