Internet based marketing practice is called affiliate marketing where the business rewards its partners or affiliates for bringing traffic or customers through their marketing efforts. Stated simply the concept of having to pay a third party to boost the number of hits and customers to your web site is known as affiliate marketing. Affiliate marketing network refers to the industry where individuals and also companies carry out affiliate marketing and it includes affiliate management companies, affiliate networks, in house affiliate managers, different kinds of affiliates/publishers who make products and services that glorify their partners and specialized third party vendors.

Affiliate marketing is not a radical new concept. In all reality it is a super set of conventional internet marketing strategies. Some of the common methods of advertising in affiliate and also internet marketing are e-mail marketing, paid search engine marketing, organic as well as inorganic search engine optimization and display advertising. Besides this affiliate marketers also use unorthodox methods like posting reviews, giving demos of the original products and services offered by the web merchant. The use of one web page to promote another or to increase traffic on another website is also another definition of affiliate marketing.

Although impressive and extremely effective it still has a relatively low profile in the world of internet marketing and e-business marketing strategies. Search engines like Google, web site syndication and emails continue to be the most commonly used methods to catch the interest of online merchants. One market driving force for affiliate marketing is its "pay for performance" model. This is a recognized policy in normal retail businesses and has been a big success with traditional businessmen. The merchants think of it as a win-win situation. The merchant doesn't incur any fees until the results are accrued. You have to exclude the initial setup expense in this equation. The biggest example of this technique is the web site Amazon.

There is still one major drawback of this method of advertising. It is not as easily scalable as the traditional display advertising. Then again with an increasing number of people turning to the internet and the continuing trust of people in online deals has some what overshadowed this problem. The thought of generating considerable profits coupled with the fact that more and more people are willing to take the plunge in the field of e-business has led to the maturation of affiliate marketing.

Affiliate marketing makes the business more popular in this competitive world and getting recognized is the difference between being on the cover of Forbes and being anonymous. Since affiliate marketing is too burdensome for a single merchant to deal with in house, an increasing number of online merchants are going for new affiliate program management companies. These companies have usually been founded by affiliate companies and network program managers. They provide cost effective solutions or affiliate programs to help merchants and vendors.

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