While dot-coms and Internet stock continue to fall, many marketing experts say affiliate marketing is here to stay. Only a few years ago, affiliate marketing was considered a partnership between a merchant and company who serve similar demographics. There were no transactions, simply a synergistic relationship between two like-minded companies. Through affiliate marketing, companies drove visitors to affiliated Web sites through text links and banner ads. Now, affiliate marketing can take many forms and does not require bartering.
Affiliate marketing is any type of co-branded advertising that benefits both parties.
Affiliate marketing allows us to work within a limited budget to achieve maximum results. It's very cost and benefit effective and promotes the good will of partnership. Dan Barnhart, manager of interactive for Denver-based Barnhart CMI, said that affiliate marketing is best when it is just for trade. For the most part, affiliate marketing is basically a fancy term for getting partners online. Barnhart said the idea behind an affiliate program is like a friendship where there is little or no exchange of funds.