Affiliate marketing is a form of Internet marketing used by many business owners, merchants, and/or those in advertising. The purpose of the new business tool, affiliate marketing, is to use one’s website to direct traffic to another website. The person or company who maintains the original website and handles the process or flow of information is known as a publisher or affiliate. The publisher (or affiliate) loads the advertising information on the website. The number of “hits” received on the website (that is, the number of times the website is accessed) is recorded, as well as any other action generated by the person accessing the website.

“Pay-per-click” (PPC) is also known as “cost per click (CPA)” or “cost per sale (CPS). This option is dependent on the customer not only viewing the ad, but actively following up by visiting the advertiser’s website before any compensation is given to the publisher. This form of compensation is usually generated by ads that are displayed on search engines. “Pay-per-impression” (CPM) can also be referred to as CPT (“cost per thousand”). The commission earned by the publisher is paid as soon as the advertising material is loaded on the website. No further action is required by the person viewing the advertisement. Display advertising most often generates the payment when this method is used.