The Internet has fast become an efficient and trusted way for companies to market and sell their product. One of the reasons for this has been the rise of “Affiliated Marketing” – which is when a website directs traffic to itself through adverts on other (usually related) websites.

Affiliated marketing either pays the affiliate through a pay-per-click program (the affiliate receives money every time an advert is clicked) or a pay-per-sale program (the affiliate receives commission every time a posted advert on their site generates an actual sale or subscription.) Generally, the pay-per-sale program (also called cost-per-sale, or CPS) is the tried and trusted form of affiliate marketing used.

It was four years after the Internet was launched when Affiliate Marketing began to bloom. This is due to big companies such as CDNOW and Amazon.com. Google also has a program that is usually associated with affiliated marketing, which is Google Adsense. However, Adsense is not really a part of affiliated marketing since the ads placed on the subscriber’s site is in accordance to its theme or context. In addition, Google does not do direct selling of a specific product, it generate profits in other ways.

Since affiliate marketing is highly effective, highly efficient and cost-effective, it is a favorite choice amongst the merchants and affiliates. It has the capacity to generate huge profits for both the merchant and the affiliate without having to pay any fees. The only time a merchant and affiliate do a transaction is when a sale took place.

Merchants usually avoid Cost-Per-Click or Pay-Per-Click because of the frauds that I have mentioned above. Since in this system, merchants are forced to invest money without the guarantee of reeling-in sales. In effect, the merchants would rather use CPS or Cost Per Sale system, because it has no risk at all for both the merchant and affiliate.

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