Wednesday, 14 December 2011


By now we are sure that the reader is familiar with the target user perspective of Affiliate Marketing where in the user clicks ads on some website resulting in a possible sale. The following section aims at highlighting the various background processes and entities involved in the successful delivery of an Affiliate marketing campaign. Below is a depiction of a typical Affiliate Marketing working model

ENTITIES INVOLVED The chief protagonist is the “Intermediary” whose responsibility is to orchestrate all interactions between the “Affiliate” and the “Merchant”. The roles of the “Merchant”, “Affiliate” and the “Intermediary” are elaborated below.

A. Merchant:
Merchants are product owners in any business domain looking to popularize or sell their products worldwide utilizing Internet marketing as a strategy.

B. Affiliate:
Affiliate is an individual or a group with the capability to influence and induce a larger group of internet users to buy merchants products. Affiliates are categorized under various categories like Food & Drinks, Fashion & Beauty, Automotives, Computer & Technology, Career and employment, Retail, Financial services, Insurance, Real estate, Software etc depending on the type of products they intend to take up from merchant for sale promotion.

C. Intermediary:
Role of intermediary is to help merchants promote their products by getting them linked to potential affiliates in the market or vice versa. Intermediary receives monetary benefits from the merchant for efficiently managing the affiliate-merchant network & payments. Intermediary thereby helps to run affiliate marketing in a controlled environment ensuring equitable remuneration to affiliates based on the results achieved. The intermediary (technology firm) delivers the technical model in the form of web interface/product to merchants and affiliates and earns a portion of commission based on the transactions taking place between affiliate and merchant. The intermediary provides the complete technical Infrastructure including Ad & Click servers, transaction tracking servers for tracking of clicks, sales/transactions, impressions and leads. The intermediary assumes complete responsibility for maintaining a fruitful association (ensure deserving remuneration to affiliates) between affiliate and merchant.

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