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Affiliate marketing

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Affiliate marketing is a promotional strategy where businesses reward affiliates for each visitor or customer[2] brought by the affiliate’s marketing efforts. This marketing model can trace its roots back to revenue sharing concepts, with the internet[3] version patented by William J. Tobin in 1989. Over the years, the affiliate marketing industry has grown significantly, with different sectors like retail[4], gambling, and file-sharing becoming active players. The industry has adopted various compensation methods, including revenue sharing and cost per action. Additionally, it has embraced the use of different performance methods like cost per mille. While affiliate marketing promises potential profits, it also faces challenges like spamming[5], adware, and legal issues. Despite these, it remains a preferred marketing strategy[1] for many merchants due to its pay-for-performance model.

Terms definitions
1. marketing strategy. "Marketing Strategy" is a term that encompasses a company's broad plan for its marketing efforts. It includes mapping out the direction for future planning periods, focusing on customer value, and anticipating growth. This strategic planning aims to bridge the strategic gap for sustainable growth by organizing resources for a competitive edge. A marketing strategy also involves long-range planning to identify new business opportunities and potential threats. It utilizes various components such as pricing, customer service, go-to-market strategy, packaging, and market mapping. Additionally, this strategy uses metrics for tracking performance and strategic analysis to identify the company's current position. It also requires a clear vision and mission statement for the organization. Furthermore, strategic planners use various research tools and analytical techniques to evaluate competitive brand performance. Ultimately, a marketing strategy seeks to obtain a sustainable competitive advantage.
2. customer.
1 The primary entity in this text is the "customer. A customer is an individual or entity that purchases goods or services from a business. They are crucial participants in the commercial landscape, forming relationships with businesses through transactions. Customers can also be classified as 'clients,' especially when they receive tailored advice or solutions from a business. The term 'client' originates from Latin, implying a sense of leaning or bending toward a business. Customers vary in types - from end customers who directly buy products or services, to industrial customers who incorporate these goods or services into their own offerings. These customers can have different relationships with the business, such as being employers in construction projects. Businesses often segment their customers into different categories, like entrepreneurs or end users, to better understand and serve them. The understanding and management of customer relationships is a critical area of study and practice in business.
2 The primary entity in this text is the "customer. A customer is an individual or entity that purchases goods or services from a business. They are crucial participants in the commercial landscape, forming relationships with businesses through transactions. Customers can also be classified as 'clients,' especially when they receive tailored advice or solutions from a business. The term 'client' originates from Latin, implying a sense of leaning or bending toward a business. Customers vary in types - from end customers who directly buy products or services, to industrial customers who incorporate these goods or services into their own offerings. These customers can have different relationships with the business, such as being employers in construction projects. Businesses often segment their customers into different categories, like entrepreneurs or end users, to better understand and serve them. The understanding and management of customer relationships is a critical area of study and practice in business.

Affiliate marketing is a marketing arrangement in which affiliates receive a commission for each visit, signup or sale they generate for a merchant. This arrangement allows businesses to outsource part of the sales process. It is a form of performance-based marketing where the commission acts as an incentive for the affiliate; this commission is usually a percentage of the price of the product being sold, but can also be a flat rate per referral.

Affiliate marketers may use a variety of methods to generate these sales, including organic search engine optimization, paid search engine marketing, e-mail marketing, content marketing, display advertising, organic social media marketing, and more.

Though the largest companies run their own affiliate networks (for example Amazon), most merchants join affiliate networks which provide reporting tools and payment processing.

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