The answer can be found in an understanding of the Internet industry as embryonic and in a constant state of flux. Within the new Internet economy, all players are groping in the dark, hoping to find the elusive light switch that will turn on the revenue stream, in the process, developing and experimenting with new business models. In such a new and innovative industry sector, these are really the only new models that can be applied. Phrases such as win-win really take on particular relevance and meaning. For companies wishing to break into the Internet community and establish a brand presence, opt-in affiliate programs offer the promise of a mechanism that can help earn money from the Internet.
Affiliate programs are an efficient way of creating mailing lists to generate sales leads.
For shoddy business services, affiliate programs may also be the channels through which upset customers and employees may discuss their issues with other potential employees and customers. In this way, the electronic medium can act as an accelerator of the rumour mill, which can act to the detriment of a company. Banner exchanges, affiliate programs and the sharing of business opportunities between business partners operate on the philosophy of creating and sustaining mutually reinforcing industrial structures. It is better to have a good referral than a short-term profit at the expense of future goodwill, says this logic. Exchanging banners is preferable to exchanging cash.