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Many people have heard of affiliate marketing and they might have a general idea, but they really have not grasped the simple concept of it. If they are contemplating a home based business that might include it, they need to understand just exactly what it means. So, I am forwarding a simple explanation of affiliate marketing to help clear up any vagueness or misunderstanding.
Affiliate marketing can really be broken down into three main parts that are inter-dependent. Each part is distinct but critical to the point where this type of marketing could not exist without it. It can be compared to a three leg stool where if one leg is missing the stool is useless. Each leg is dependent upon the other in order for the whole thing to work.
The three legs which create affiliate marketing are:
1. A company or business that wants to expand their market globally on the internet through the use of a web site.
2. An affiliate network organization that meets with that company and together they come up with a marketing plan to bring customers to that company. The plan is formalized into a legal contract spelling out all the details and benefits.
3. The third leg is the individual affiliate who uses several techniques to channel customers through the affiliate network [of which is a part] to the company's web site where the business takes place.
That, in a nutshell, is the simple explanation of affiliate marketing. It is not as complicated as some people make it sound. It is not rocket science. No matter how it is structured or what other ornaments are attached to any individual program, it must include these three legs in order to exist.