Affiliate Tracking Systems
– Allow merchant to control how it credits click-throughs
– Monitor window of time in which affiliate can get credit for a click-through
– Record and store affiliate information
– Provide commission/fee reports
Affiliate management networks
An affiliate management network is a third-party entity that recruits affiliates, manages the registration process, linksexpert tracks and properly credits all of the fee and commissions and arranges for payment. In return for these services, the affiliate management network collects from the merchant a percentage of each referral transaction’s fee or commission-perhaps as much 30 percent.
Well-established affiliate management networks: Example: Commission Junction, LinkShare 
Affiliate tracking technologies
To achieve this we develop a strategic online relationship with advertisers to improve the creation, management, and analysis of online marketing and sales activities. These activities are supported by a scalable and reliable tracking technology. Keeping track of the click-throughs and properly crediting the affiliates is a complex programming task. Companies such as BeFree and ClickTrade sell software that automatically monitors and credits all followed links resulting in a sale. Note that ClickTrade was acquired by Microsoft and is now co-branded as part of Microsoft bCentral.
Some tracking technologies are following:
– Custom links containing affiliate information or affiliate and merchant information
– Tracking cookies
– Third-party tracking software
– Application service provider tracking service
– Sub Domain tracking
– Database record matching.
Affiliate Marketing Risks and Challenges
Affiliate marketing is not without certain risks and challenges primarily form unethical affiliates and the negative perceptions online consumers have about tracking technologies.
– Cookie stuffing – Multiple cookies placed on visitor’s hard drive during a single visitor affiliate site.
– Spyware – General term used to describe software that has been installed on a personal computer without the owner’s permission, its unknowingly download and install spyware when you download games, screensavers, freeware utilities and so forth.
– Parasiteware – Redirects affiliate links and Replaces content of existing tracking cookies
– Spammers – Merchant is responsible if affiliates use spam to promote sites
– Negative perception of tracking cookies – Many consumers install and use blocking software which includes Block tracking cookies and Delete tracking cookies.
Why Affiliate Marketing Is Profitable for E-Business
If you have been considering an affiliate marketing venture, there are some very good reasons why you should go with this method of generating recurring revenue. Here are some of the ways that affiliate marketing can be a lucrative means of creating income that will be stable and allow you to grow exposure over time.
– One of the first advantages of affiliate marketing for the new entrepreneur is that the startup cost is very low. Most companies that offer affiliate marketing programs do not require any type of monetary investment on the part of the affiliate.
– The second expenses are limited to what you have to pay to connect with the Internet, the software you may need to load on your computer, and a web site where the ads associated with the affiliate marketing program can be placed. With web site hosting such an inexpensive service these days, setting up your own web site for the affiliate ads will be a breeze.
– Another reason that affiliate marketing is such a moneymaker is the fact that there are so many different types of ways to set up the program. You can go with the pay per click option, which works out great when it comes to promoting special offers. Ads that lead to product review sites often are a way to allow product users to go through your portal and leave comments on the items they purchase.
First Thing’s First-Avoid These Silly Affiliate Marketing Mistakes!
While affiliate marketing is a great way to earn a living, the fact is that many people become discouraged and drop out of programs. In many instances, the failure to be successful with affiliate marketing has to do with making a few simple mistakes. Here are some examples of those mistakes and why they should be avoided.
– A low-quality website with no original content and tossing in some affiliate links. While it is certainly true that you need to have a web site up and running in order to participate in an affiliate program, there is also the need to apply some effort to getting the word out about your site. Otherwise, the chances of people visiting your web site and clicking on one of the links are pretty slim.
– Another mistake many affiliate partners make is not choosing products that have some relevance to the content of your web site.
– Keeping your site content and the ads more or less relevant to one another will make it easier to generate revenue, and not fail as an affiliate marketer. Now, this may seem intuitive – but many make this mistake in subtle ways (i.e. they mismatch their customers with products).
– One final mistake that many affiliate marketers make is not sprucing up their web sites from time to time. Keeping the content fresh is one way of building and keeping a loyal reading audience because keeping the same old look and the same old text with nothing new to entice people back is a sure way to limit your chances at being a successful affiliate marketer. The fact is that you do have to proactively promote your site, keep the content fresh, and make sure the ads have some connection to the subject matter of your site.