An affiliate
network acts as an intermediary between publishers (affiliates) and merchant
affiliate programs. It allows website publishers to more easily find and
participate in affiliate programs which are suitable for their website (and
thus generate income from those programs), and allows websites offering affiliate programs
(typically online merchants) to reach a larger audience by promoting their
affiliate programs to all of the publishers participating in the affiliate
network.[1]
Traditional affiliate
networks enable merchants to offer publishers a share of any revenue
that is generated by the merchant from visitors to the publisher's site, or a
fee for each visitor on the publisher's site that completes a specific action
(making a purchase, registering for a newsletter, etc.). The majority of
merchant programs have a revenue share model, as opposed to a fee-per-action
model.
For merchants, affiliate
network services and benefits may include tracking technology,
reporting tools, payment processing, and access to a large base of publishers.
For affiliates,
services and benefits can include simplifying the process of registering for
one or more merchant affiliate programs, reporting tools, access to product
API's and payment aggregation.
Affiliates are generally able to join affiliate networks for free, whereas there is generally a fee for merchants to participate. Traditional affiliate networks might charge an initial setup fee and/or a recurring membership fee. It is also common for affiliate networks to charge merchants a percentage of the commissions paid to affiliates, this is known as an 'over-ride' and is payable on top of the affiliates commission.
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