A Critical Review of Online Affiliate Models

Abstract

There are a variety of affiliate models currently in place on the Internet today. The most popular models include percentage of sales, flat referral rate, pay per lead, pay per email, cost per click, and cost per view. Almost every website offers one form or another of these affiliate models. Many recent websites offer a combination of these models. While affiliates offer tremendous promise in generating traffic and sales for the merchant, it must evaluate each potential relationship carefully before embarking on it. We outline a set of critical steps a merchant should take to ensure a perfect match.