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Ebusiness - Affiliate Model
In contrast to the generalized portal,
which seeks to drive a high volume of traffic to one site, the affiliate model, provides purchase
opportunities wherever people may be surfing. It does this by offering financial incentives
(in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide
purchase-point click-through to the merchant. It is a pay-for-performance model -- if an affiliate does
not generate sales, it represents no cost to the merchant. The affiliate model is inherently well suited
to the web, which explains its popularity. Variations include, banner exchange, pay-per-click, and revenue
sharing programs.
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