Affiliate marketing is a type of marketing in which a business rewards one or more affiliates for each customer brought about by the affiliate's own marketing efforts. The industry has four core players: the merchant, the network (which takes care of the payments), the publisher (also known as 'the affiliate'), and the customer. In the market there are secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors.
Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include search engine optimization (SEO), paid search engine marketing (PPC - Pay Per Click), e-mail marketing etc.
Affiliate marketing has grown very quickly since its inception. The e-commerce websites, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. Currently the most active sectors for affiliate marketing are the adult, gambling, retail industries and file-sharing services. The three sectors expected to experience the greatest growth are the telecom, finance, and travel sectors. Soon after these sectors came the entertainment and Internet-related services sectors.
Websites and services based on Web 2.0 concepts - blogging, for example - have impacted the affiliate marketing world as well. Web 2.0 platforms have also opened affiliate marketing channels to personal bloggers, writers, and independent website owners. Regardless of web traffic, size, or business age, programs allow publishers at all levels of web traffic to place advertisements in blog posts.
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