Affiliate
An affiliate is a commercial entity with a relationship with a peer or a larger entity.
Broadcast networks
In a radio network or TV network, an affiliate is a radio station or TV station that agrees to carry the broadcasts of, but is not owned by, the network. Usually, the stations are still responsible for the content (such as profanity) to some extent. An affiliate is not the same as an owned and operated station, which is owned by the network such a station carries programming for.
Electronic commerce
Affiliate marketing typically refers to this Electronic commerce version of the traditional agent/referral fee sales channel concept. An e-commerce affiliate is a website which links back to an e-commerce site such as Amazon.com. When a reader of the website clicks on a link, they are connected to the e-tailer and if they purchase something the affiliate receives a small payment, usually a percentage of the money the customer spends. Affiliates can also be referred as publishers. The Hotel and Travel Industry uses affiliate marketing to a large extent.
Corporate structure
A corporation may be referred to as an affiliate of another when it is related to it but not strictly controlled by it, as with a subsidiary relationship, or when it is desired to avoid the appearance of control. This is sometimes seen with multinational companies that need to avoid restrictive laws (or negative public opinion) on foreign ownership.
Affiliate networks
An affiliate network is composed of a group of merchants and a group of affiliates. Merchants join the network and affiliates join the network in order to advertise the merchant products in exchange of a commission from the merchant. Affiliate networks present some great advantages for the merchant and the affiliate. The merchant gets potential access to a wide networks of affiliates. The affiliate does not necessarily need to make a certain sale amount for one particular merchant but rather for the entire range of merchants before getting paid.
The affiliate also puts more trust in a network rather than a merchants independent affiliate program. The merchants pay the overall commission to the network. The network then distributes the money to each affiliate who made the sale.
Use of affiliate links
Sites made up mostly of affiliate links are usually badly regarded as they do not offer quality content. In 2005 there were active changes made by Google whereby certain websites were labeled as "thin affiliates" and were either removed from the index, or taken from the first 2 pages of the results and moved deeper within the index. In order to avoid this categorization, webmasters who are affiliate marketers must create real value within their websites that distinguishes their work from the work of spammers or banner farms with nothing but links leading to merchant sites.
Affiliate links work best in the context of the information contained within the website. For instance, if a website is about "How to publish a website", within the content an affiliate link leading to a merchant's ISP site would be appropriate. If a website is about Sports, then an affiliate link leading to a sporting goods site might work well within the content of the articles and information about sports. The idea is to publish quality information within the site, and to link "in context" to related merchant's sites.
One common use of affiliate links is shopping directories and or price comparison websites. However, these sites should do their best to enhance the web shopping experience. In many other cases, affiliate marketers offer unique content in niche subject areas that they have researched well, and their text or graphic links to a merchant's site are well placed. This principle works very well in blog website marketing as well.