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POTENTIAL OF AFFILIATE MARKETING

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Abstract

The purpose of this paper is to critically examine, analyze and describe the concept of affiliate marketing activities. The article presents the theoretical and empirical research findings which would identify the factors of successful implementation of the concept, simultaneously identifying the reasons for constraining its usage. The main hypothesis is that present market offer of advertising space sellers doesn't reflect the expectations and requirements of sponsors (companies investing in e-promotion) in terms of the division of responsibility for the campaigns' performance.
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... Affiliate marketing means organization hired trusted affiliate marketers (third-party publishers) to promote the goods and services of an organization through its website (Duffy, 2005;Lammenett, 2017;Mazurek and Kucia, 2011). Thus, affiliate marketing can also be defined as a technique for an organization to outsource the selling of its products. ...
... In a simple word, the success of affiliate marketing can be seen through the increases in an organization's sales. It usually involves three parties, namely organizations, affiliate marketers, and customers (Mazurek and Kucia, 2011). A previous theory developed by (Rogers, 1983) namely diffusion of innovation (DOI) explained how, why, and at what stage of the new ideas and technologies spread. ...
... More exactly, affiliates are highly relevant and become efficient because they reach specific target segments [15]. For the potential consumers, AM provides an exposure to new products or services from trustworthy sources [16]. In fact, AM becomes a valuable Marketing strategy if the seller and the affiliate investigate the consumers' perceptions about it, in terms of trusting the online information sources [17]. ...
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During the last decade, Internet has become an essential element in Marketing due to the benefits that come along with it, especially, in services that may promote and distribute products and services easily. In scientific literature, any activity that involved on online selling of a product or a service was classified as being e-commerce. In the last few years, since the pandemic started, many sellers had to find innovative distribution methods by implementing the principles of Affiliate Marketing (AM). Unfortunately, the implementation of AM principles in health care services has not gained too much attention because there are not so many specialists who would identify AM guidelines and take into consideration the full potential of this form of Marketing. The aim of this review was to investigate the existing literature on health care services and Affiliate Marketing and to assess whether the principles of AM might be successfully applied in health care services, with a specific interest in Ophthalmology products.
... Criteria for becoming an affiliate varies for different e-commerce companies. For example to become an affiliate of large e-commerce companies like Amazon, Flipkart a person must have his/her website or blog so that products or services can be promoted on their sites [9]. Small or startup e-commerce companies do not demand such criteria [12]. ...
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At present, most people like to buy things online (i.e.) through e-commerce websites. People consider the advantages in online shopping like reduction in travel cost, time-consumption and offers, etc. Even though these advantages paves the way for e-commerce growth, it is not sufficient. The constant parameter that supports the growth of an e-commerce company is marketing. Marketing plays a major role in a product or idea promotion in both offline and online business. Suppose if the availability of the product belongs to a particular region, then direct marketing is more efficient for the product to meet its success. But shopping websites like Amazon, Flip kart, Snap deal etc., cannot implement direct marketing because those companies' boundaries are not limited to a particular region. In this case, affiliate marketing comes into the role which acts as an intermediate between the consumer and e-commerce companies. Affiliate marketing is one in which a person uses their marketing strategy to promote the e-commerce products in social network by becoming an affiliate to that company. Affiliates will be allocated with a unique referral link. If a person buys a product using that reference link then a commission will be paid to those affiliates by the respective company. In this paper, the K-Means Clustering algorithm is going to be implemented on a dataset with the help of a Pyspark environment that helps the affiliates for their marketing to reach the right customer with the right product.
... For the affiliate, it offers an opportunity to leverage her social network for monetary gains. For the prospective buyers, affiliate marketing offers exposure to new products or services from trustworthy sources that could have gone unnoticed in the context of personalized internet advertising or any other legacy forms of advertising [41]. ...
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The recent massive proliferation of affiliate marketing suggests a new e-commerce paradigm which involves sellers, affiliates and the platforms that connect them. In particular, the fact that prospective buyers may become acquainted with the promotion through more than one affiliate to whom they are connected calls for new mechanisms for compensating affiliates for their promotional efforts. In this paper, we study the problem of a platform that needs to decide on the commission to be awarded to affiliates for promoting a given product or service. Our equilibrium-based analysis, which applies to the case where affiliates are a priori homogeneous and self-interested, enables showing that a minor change in the way the platform discloses information to the affiliates results in a tremendous (positive) effect on the platform’s expected profit. In particular, we show that with the revised mechanism the platform can overcome the multi-equilibria problem that arises in the traditional mechanism and obtain a profit which is at least as high as the maximum profit in any of the equilibria that hold in the latter.
... For the affiliate, it offers an opportunity to leverage her social network for monetary gains. For the prospective buyers, affiliate marketing offers exposure to new products or services from trustworthy sources that could have gone unnoticed in the context of personalized internet advertising or any other legacy forms of advertising [41]. ...
Conference Paper
The recent massive proliferation of affiliate marketing suggests a new e-commerce paradigm which involves sellers, affiliates and the platforms that connect them. In particular, the fact that prospective buyers may become acquainted with the promotion through more than one affiliate to whom they are connected calls for new mechanisms for compensating affiliates for their promotional efforts. In this paper, we study the problem of a platform that needs to decide on the commission to be awarded to affiliates for promoting a given product or service. Our equilibrium-based analysis, which applies to the case where affiliates are a priori homogeneous and self-interested, enables showing that a minor change in the way the platform discloses information to the affiliates results in a tremendous (positive) effect on the platform's expected profit. In particular, we show that with the revised mechanism the platform can overcome the multi-equilibria problem that arises in the traditional mechanism and can obtain a profit which is at least as high as the maximum profit in any of the equilibria that hold in the latter.
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Chapter
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Purpose – This article seeks to explore the inner workings of affiliate marketing. Design/methodology/approach – Defines the affiliate marketing marketplace including some of the participants and explores the characteristics of a successful long‐term relationship. Findings – The key to successful affiliate marketing lies in the construction of a win‐win relationship between the advertiser and the affiliate. Affiliate marketing is likely to become the principal mainstream marketing strategy for e‐commerce businesses in the future. Originality/value – Looks at the inner workings of affiliate marketing, defines the affiliate marketing marketplace including some of the participants and explores the characteristics of a successful long‐term relationship.
Corporate blogs-innovative communication tool or another internet hype? Empirical research study
  • G Mazurek
Mazurek, G., Corporate blogs-innovative communication tool or another internet hype? Empirical research study in: Proceedings of the International Multiconference on Computer Science and Information Technology, Vol. 3, 2008, pp. 403-406.