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Origins of Affiliate Marketing

In July 1996 Amazon.com started its associate (affiliate) marketing program. Under the program organizations associated with Amazon could place a banner or text with links to Amazon. Initially this was for advertising individual books on their website. The associates could also link directly to the Amazon home page.

The associate receives a commission when visitors clicked on a link on the associate’s website to go to Amazon. The affiliate is only paid when the visitor purchases a book promoted by the affiliate. Amazon expanded this to rewarding affiliates for sending customers to its website. Typically, Amazon pays commissions for any items bought by the visitor within 24 hours of their visit. This payment is regardless of the item the visitor purchases.

Amazon was one of the first merchants to offer an affiliate program, and quickly became one of the largest affiliate marketing programs available.

Merchants, like Amazon, like the affiliate commission model because they only pay commissions on the sales delivered by the affiliate. This greatly reduces the merchant’s advertising cost. Affiliates also greatly increase the advertising reach of the merchant. Better still, the affiliates are committed and dedicated to advertising the merchants’ products.

This model has helped make Amazon one of the largest retailers on the planet.

For more information on affiliate marketing please visit Wikipedia.