One of the biggest driving force (if not the biggest) in online business (e-commerce) is affiliate marketing.
Theoretically, this new business model allows for the involved parties to profit massively.
We are only too familiar for the affiliate marketer and the merchant both raking in profits.
To date, more and more people are getting involved in the world of online affiliate marketing.
The biggest reason, of course, is the fact that starting and maintaining a business related to affiliate marketing is very cheap compared with all the others.
Of course, the costs would be on the initial big investment of time and effort where it is needed the most.
(Online business takes time before it can take off.
The effort would be spent mostly in doing everything in the books to drive traffic and move the business.
) Affiliate marketer benefits The main benefit an affiliate marketer gets in e-commerce is principally measured on the amount of the commissions.
Many merchants, vying for the services of good affiliate marketers, put in some real sweeteners into their products (massive commissions, and other monetary perks down the line).
Some other ways marketers earn their money is through ads or links on their website, doing some product reviews, using pay-per-click methods or a combination of any or all of these.
Any conversion (a consummated sale) will result in earned commissions.
Some online business veterans have also turned entrepreneurs, creating their own networks.
There they promote products and services of their partner merchant companies and link them to the main site.
Commissions earned in online business are usually way too high than those in other selling arenas.
Merchant (seller) benefits The online merchant earns his own money by the simple process of not spending big marketing and advertising costs on their products.
Coupled with the fact that most of these products are digital (with programming and man-hours the only investments), the profits can be massive compared to the production costs.
The seller (merchant) also enjoys a wider market to advertise his product (depending on the number and industriousness of his affiliate marketers).
The main point is that the affiliate marketers, in effect, shoulder the advertising and promotion costs of the product.
Consumer benefits The last question is this: Does the consumer benefit from the sale, being the third factor in the equation (seller, producer, and buyer)? For some experts, the opinion is that the sale also benefits the consumer, but in a conditional situation.
In a very real sense, the consumer is provided a service where he "discovers products and services relevant to his needs and wants.
" They might visit a site for some information or use the service offered there.
The service might be a forum, a social network, game site, marketing blog or any other thing.
They will then be offered links to products associated with those services.
In that sense, the consumer have benefited by way of more information received and links to the many other sites that might be in line of his interest.
The decision of buying or not falls within the consumer's right of choice (yes or no).
Affiliate marketing does have benefits for all three transacting parties, after all.