Affiliate Business Models

Page history last edited by brian 2 yrs ago

 

 

 

Affiliate Model

In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, the affiliate model, provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model -- if an affiliate does not generate sales, it represents no cost to the merchant. The affiliate model is inherently well-suited to the web, which explains its popularity. Variations include, banner exchange, pay-per-click, and revenue sharing programs. Barnes & Noble, Amazon-com

 

Banner Exchange -- trades banner placement among a network of affiliated sites.

 

Pay-per-click -- site that pays affiliates for a user click-through.

 

Revenue Sharing -- offers a percent-of-sale commission based on a user click-through in which the user subsequently purchases a product.

 

Here are a few examples of affiliate programs

 

 

 

 

Portals

 

These are the guys that have taken the affiliate programs to the next level, and are not just making links back to their own website, but are actually transporting their selling tools and placing them on the hosts website. This emans that the customer can stay at the hosts website and never leave, conducting all aspects of the businss right there.

 

In some cases, these portals are being used for selling, but in others, its just a way for companies to try and stay in front of as many of their viewers as possible. The portal concept means that you will encourage another website to download your code so that they help you connect with more vieweres. Inside of the protals, you might find full ecommerce functionality, or just a streaming video. Whatever the code tells teh portal to do, it is interesing to see how people are taking advantage of this new technoogy

 

Here are a few examples of web portals

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