Monday, September 20, 2010

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Thursday, September 9, 2010

makeup

Does fall makeup seem like one big purple haze to you? Fear not! There’s no reason to be intimidated by this bold color—it’s actually one of the few that looks good on everyone. And this season, there’s such a wide variety of purple makeup—from lilac shadow to blackberry lipstick—that you can make the trend as innocent or daring as you want. Here are six tips for how to look gorgeous in purple:

EYES

1. Play it cool. With shadow, stick with blue-, gray-, or brownish purples—anything too red or pink around the eyes can make you look sickly. Pale shades such as lilac and lavender work best on fair skin, while brown-based colors like plum and burgundy look great on olive or dark skin. If you’re fair, try the pale lavender shade in L’Oréal Paris HIP Studio Secrets Professional Crystal Shadow Duo in Charming (shown above); for darker skin tones, try the sparkling plum color in Lancôme Color Design Sensational Effects Eye Shadow Quad in French Touch.


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Eyeshadows add a depth to the eyes of a woman and its right application can make the eyes look smaller, bigger, set closely together or set apart. All we need is to choose the right color and shade and know how to apply it perfectly. The shape of your eyes, the brow bone and shape of your eyebrows, your eyelid and the corner of your eyes all play a role in the right application of the eyeshadow. A pearly eyeshadow needs a sponge applicator to avoid flaking while a shading brush is of great help when it comes to blend in the colors of the eyeshadows. Liquid eyeshadows are sheer and double up as a highlighter for face, body and eyes. They add shimmering to the eye makeup and also serve as the base to help other eyeshadows layered on them to set and give depth to them. They feel light too.


10 Free Mineral Eyeshadows

Eyeshadow pencil are great to be kept in handbags but do not draw them across the eyelid to avoid skin stretching. It is better to apply it using your fingertip so it blends well. Eyeshadow comes in variety of colors and it is the cosmetic that you can experiment with quite boldly. Most common shades range from pink to plum, coral to copper, blue to green along with silver, gold and other frosted colors. The finish may differ too from velvety matte to shiny pearl and from sheer chiffon-like look to bold and bright hues. Good-quality eye shadows stay for longer periods of time and do not crease, flake or fade easily. The most common way to apply an eyeshadow is to sweep from the inner corner of the eye to outside and upward to brow bone. Darker shades along the crease of the lid lend the look of dramatic eyes. The most common way of choosing the right eyeshadow is to keep the color of one's eyes in mind.
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aupe, gray, violet, purple and deep blue colors go well with blue eyes while black mixed with bright blue color helps to create smoky eyes. For bold funky looks, you can choose silver, turquoise and fuchsia colors. Brown, apricot, purple, plum and forest green colors brighten up green and hazel eyes while you can add a touch of boldness to the face by experimenting with gold, lime-green, very light green and bright purple shades. Copper, bronze, champagne, beige and forest-green looks good on brown eyes while brown eyeshadow helps to create a doe-eyed look. Colors like tangerine, royal blue, hot pink and lime-green add a punch to the personality and are quite favorite with younger generation. The colors that can be used for all eyes are navy or charcoal based shades while powder-blue eyeshadow is great for achieving highlighting effects while the hottest color in the night parties is the silver-sparkle.

Tuesday, September 7, 2010

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Friday, September 3, 2010

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Tuesday, August 24, 2010

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Member's AreaMobile Monopoly is by far the best mobile marketing course that I’ve seen. Actually it is the only one I know of, which goes to show how under exposed this market really is. At first once inside the members area the information seen may be a little too much to take in all at once. Watching the introductory video will put everything into perspective and give you a lay out of how to get the most out of the course, and most importantly what action to take next and get started as fast as possible. The full course consists of “all video” tutorials broken down in 10 sequential modules. Each module is geared toward a specific theme to make it easier to navigate the course.

In addition to the Mobile Monopoly Course you get the:

Email Marketing Course:

Yes, you get an email marketing course. This is a series of 9-videos created specifically to go hand-in-hand with mobile monopoly. Using the strategies he explains, Adam was able to generate a list of 20,000 people in one month’s time. In this course you will learn how he did it so you can do it also.

Outsourcing Course:

In my opinion this is one of the most crucial aspects to any business. Because when you get to this point of your success, you stop working and start enjoying life. When you master the outsourcing course you can retire your self… seriously.

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These are 40 profitable campaigns that Adam and Tim have used in the past. What I like about these 40 campaigns is how diverse they are in nature. You would think that there is only one way to market on mobile phones, but no… there’s lots.

I do have to mention one thing though, I did try one of the profitable campaigns and unfortunately I did not get very good results. Time didn’t allow me to attempt any of the different campaigns but the point I want to make here is “Don’t buy Mobile Monopoly” solely based on these 40 profitable campaigns, because you will be greatly disappointed.

As an entrepreneur you have to think correctly, and success can’t really be passed on like this. I’m not saying none of the campaigns are profitable, but if worst comes to worst you will have 40 examples on how to correctly set up diverse kinds of campaigns.

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Mobile MonopolyI really don’t know if Adam will offer the BeastMobi tool as part of the course or as a separate product all together, but have a chance to get it I highly recommend you do because it will make things a whole lost simpler.

Pretty much BeastMobi is a tool that will automatically generate high converting mobile optimized campaigns for lead generation, CPA offers, or any other type other offer you’d like to promote on mobile phones.

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BeastMobi is finally simplifying the way we market on mobile phones!

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Sunday, August 22, 2010

Alovljet (consignment)

To Ovljet or consignment of the most important ways to profit from the Internet, upon which the vast majority of professionals profit, but what Alovljeit? What are the companies Alovljet?
We will talk here about the way that make you buy and sell on the Internet without paying a single penny, but how to trade on the Internet without paying any money? The answer is consignment or Alovljet
Consignment is through partnership programs affiliate programs, which provided a number of companies are jointly and choose one of the products to market for you on commission of certain so you can work easily in the consignment should have your own site or your personal blog and you will have a large number of visitors
When involved in one of these programs (programs Alovljet) is granted to link or code of your own you are putting it in your site at any location you specify, or that you Bochharh in other sites and forums to get a commission on every sale made on your way And we can deduce from this that your turn is simply an intermediary between the company you are marketing them and between the buyer and this role does not cost you anything

How do I subscribe in sales commission?
Participation in programs Alavljet very easy, you can can look at Google for affiliate program, you will find many companies that have these programs that you can register and After you've completed the registration correctly choose one of the products and get the codes and links them to put them in your blog or your site is waiting for visitors that some of them buy

What types of consignment?
1 - pay per sale
In this type the company to pay in the event that no one has brought visitors who purchase any one company's products when the visitor to become a buyer

2 - Tiered Commission
In this type payment is based on the amount of sales that are on your way over a certain period and supports this kind to make greater effort to achieve the greatest possible profit

3 - pay per lead
Is in this type Amoltk calculated for each person who co-location of your way and thus the greater the number of subscribers to the site by the more Amoltk

The most important companies selling on commission
As we said internal pressure search for sites selling on commission or Alovljet by Google and by writing in the search box affiliate program or associate program and you'll see many companies that work in this area but I am here I will review with you two considered the most important companies Alovljet, namely:
1 - Click Bank Click Bank
2 - Systems Engineer Junction Commission Junction

Here comes your turn, my dear reader to begin in the area of sales commission and deal with these companies and started to learn tactics for near my advice to you when you participate in these companies that you read the terms and regulations, and well understood so as not to happen to you any broadcast or blurry when you are working with these companies or so as not exposed to cancel your account as a result of your violation of any of these conditions you inadvertently

References

Barua, A., Ravindran, S., Whinston, A. (1995) Efficient Selection of Suppliers over the Internet, Working paper of the Center for Information Systems Management, Graduate School of Business, University of Texas at Austin.
Benjamin, R., Wigand, R.T. (1995) Electronic Markets and Virtual Value Chains on the Information Highway, Sloan Management Review, 62-72.
Brynolfsson, E. and Hitt, L. (1996) Paradox Lost? Firm-level Evidence of the Returns to Information Systems Spending, Management Science, April.
Brynolfsson, E. (1993) The Productivity Paradox of Information Technology, Communications of the ACM, 35, 66-77.
Davidow, W., Malone, M. (1992) The Virtual Corporation, New York.
Fillmore, L. (1997) The Difference Engine in Digital Time: Tools and Strategies for Selling Content on the Internet, Annual Conference 1997 of the Association of American Publishers Proceedings, Washington D.C.
Hammer, M., Champy, J.A. (1992) What is reengineering? Information Week, 5, 10-24.
Johnston, H., Vitale, M. (1988) Creating competitive advantage with interorganizational systems, MIS Quarterly, No. 6, 153-65.
Jones, D., Navin-Chandra, D. (1995) IndustryNet: a model for commerce on the World Wide Web, IEEE EXPERT, 10, No. 5, 54-59.
Loebbecke, C. (1996) Content Providers Benefiting from Commerce on the Internet: Current Deficiencies, Proposed Solutions, and Foreseeable Business Trends, Fourth Strategic Information Systems Network (SISnet) Conference Proceedings, Lisbon.
Loebbecke, C., Trilling, S. (1997) Strategic Potential of TV Online Services: Conceptual Framework and Examples, Tenth International Bled Electronic Commerce Conference Proceedings, Vol. II, Bled, Slovenia, 70-92.
Loebbecke, C. (1999) Electronically Trading in Online Delivered Content (ODC), Hawaii International Conference on Systems Science (HICSS), forthcoming.
Malone, T.W., Yates, J., Benjamin, R.I. (1987) Electronic Markets and Electronic Hierarchies, Communications of the ACM, 30, No. 6, 484-497.
O'Connor, G., O'Keefe, B. (1990) Viewing the Web as a Marketplace: The Case of Small Companies, forthcoming in Decision Support Systems, 1997.
Pisano, G.P. (1990) The R&D Boundaries of the Firm: An Empirical Analysis, Administrative Science Quarterly, 35, 153-176.
Porter, M., Millar, V.E. (1985) How Information Gives You a Competitive Advantage, Harvard Business Review, July-August, 149-160.
Quelch, J.A., Klein, L.R. (1996) The Internet and international marketing, Sloan Management Review, Spring, 60-75.
Steinfeld, C., Kraut, R., Plummer, A. (1995) The Impact of Interorganizational Networks on Buyer-Seller Relationships, Journal of Computer-Mediated Communication, 1, No. 3.
Sterne, J. (1995) World Wide Web Marketing, John Wiley, New York, NY.
van Heck, E., Van Bon, H. (1997), Business Value of Electronic Value Case Study: the Expected Costs and Benefits of Electronic Scenarios for a Dutch Exporter, Tenth International Bled Electronic Commerce Conference Proceedings, Vol. II, 206-223.
Wigand, R.T. (1997) Electronic Commerce: Definition, Theory and Context, The Information Society, 13, No. 1, 1-16.
Williamson, O.E. (1975) Markets and Hierarchies: Analysis and Antitrust Implications, Free Press, New York.

From - the largest - Networks - Sales - commission - Komcn - Genk

So God will touch on the three largest networks of sales commission, but here I will discuss with you network Komcn Junction
Commission Junction

http://www.cj.com

Komcn Junction network has hundreds of dealers and product owners who have thousands of products that are waiting to market it and bring visitors to their sites, this website covers many areas and has a lot of different marketing programs for many different products

Some marketers prefer to Isouko only products that are in line with the whims private or on Zoukhm are, as this keeps on enthusiasm to do more and better performance, and others looking for the commission up, but whatever you're looking for the network Komcn Junction, especially the merchants and owners of products by providing you with wants
Traders and owners of the products in the GPS systems provide payment for a pledge and pay for visits gives e-mail and others give gifts attractive for those who can achieve the largest number of sales or Isttie Etjaz to a certain extent of sales at a particular time

The network to pay the marketers month is honesty to pay anything for granted is one of the largest networks in the world has paid millions to collectors over the years, certainly every marketer should be to him from the sad story like the story of our friend that we have mentioned before, but this is due to shortening of it is not the network, the network if you lose a client or two, this is losing thousands of dollars and it is therefore interest of honesty, transparency and accuracy

One of the main advantages of this network they teach you any offers gain the best marketers and thus have before you a second chance for success with these offers, so if you are looking for the money not interested in Mjuhal will marketing this feature can help you greatly in determining where the money was coming on the web
Some of the commissions in this company up to 50% of the price of the original manufacturer, but ranges between 10% and 50%, and unlike many other networks and marketing programs and individual requiring that the amount to $ 25 or $ 100 before Ihrro you a check, the network has many Atzation of payment which you can also quickly realized that the direct deposit of dividends to your account at the bank of the most important features are also available

The tools available for this company through its very easy to use as they Iovrunal a lot of information in an easy and simplified in order to Tstie to deal with the tools to easily and smoothly unlike some other networks that you provide accurate and very complex tools and methods of operation and the selection of networks is one of the decisions individual that can vary greatly from person to person

We also have a marketing system to participate in the same network they give you a total understanding of banner marketing network itself, and certainly we share one by you and receives a commission on the other you

Affiliate Marketing: An Overview

So you have developed a product which you believe will do miracles! The next step and an even more important step is to make your customers believe in your belief, I mean you have to make your customers convinced that your product really is an out-of-this-world invention. How can you reach out to the maximum number of probable customers? Simple, create a website and then you have the access to the possible clients at all corners of the globe. Now how can you make sure that your website attracts maximum traffic? Well you have to take the help of the affiliate program. Yes, affiliate program, an alternative marketing strategy for the online business is by far the most effective solution for selling things over the internet.
The concept that is believed to originate in the chitchatting of a cocktail party seems to be an integral part of any profit making web business today. It is a kind of marketing, in which the marketer sells the other people's merchandise. It works like this:
• The affiliate has a website with the banners and text links of the company
seeking advertisement.
• The objective of the affiliate will be to direct the visitor to the advertising
website with a click on the given links.
• When this click takes the visitor to the intended website and the visitor makes
some purchase from that website, the affiliate directly gets some commission.
• While most of the merchants pay their affiliates only after a purchase has
been made, there are many companies that pay their affiliates for all clicks
and leads to their websites. There are various tools and software available
that are used to track traffic and sales that are redirected from affiliate
websites. The major solutions include hosted services, shopping carts with
affiliate features, standalone software and third party affiliate network.
In its infancy, during late 1990's and early 2000's, conceiving and running an affiliate program was rather costly. But now you have a range of cutting edge software that reduces the cost of your affiliate venture dramatically. The affiliate marketing has led to the emergence of a new generation of entrepreneurs - the affiliates. Affiliate marketing has proven to be a really effective money making tool for those, who take this marketing strategy seriously and make all efforts to maximize the income potential by tapping in all the advantages of internet. There has been a consistent growth in the success rates of the affiliate companies in the past few years. Not only the big players in this sector, the single affiliates have also been greatly benefited by this wonderful money weaver of the cyber world

Affiliate Marketing: How It All Began; A Brief Discussion about Its History

The advent of the internet has changed the world; it has changed how we work, it has changed how we advance in our careers, it has even changed how we think. Websites are no longer the tool for providing information, with the success of e-commerce, websites and web related activities have become the most lucrative tool for money making. Now, it is not possible for any product, no matter how good it is to be accepted in the market, without proper publicity. While traditional ways of publicity may prove extremely useful for selling products in the real market, advertising in the virtual world is a different ball game altogether. Here you have to engineer other tricks to get your ball rolling and the affiliate program provides you just the ideal advertising tool for making your product popular over the internet. Although affiliate marketing is still in the beginning stages of its infancy, it has become the most effective tool for promoting all kinds of business - sometimes involving a particular product, service or concept - on the internet.
You might be feeling curious about the origin of affiliate marketing which has become literally all invasive in the recent years. You will be surprised to know that it has only a brief history behind it and the story of its origin is rather simple. According to certain IT myths, the concept of affiliate marketing sparked off in a cocktail party, where a lady approached Jeff Bezos, CEO and founder of Amazon.com with an intention to sell books on her Web site. This led this man with exceptional business acumen to evolve an idea to link the website in question with the Amazon site and receiving commission on the books sold on the linked website. This led to the creation of the Amazon Associates Program in July 1996 which involved placing of banner or text links on the affiliates' site for individual books with direct link to the Amazon's home page. And every time a visitor was directed from the associate's site to Amazon.com and purchased a book, the associate received a commission.
However, many researchers on the matter are of the opinion that it was not Jeff Bezos who pioneered the concept of affiliate marketing, he only popularized it. As claims Brad Waller, the VP of Affiliate and Business Development for EPage (www.epage.com), with its buyweb program, CDNow was the first to coin the concept of an affiliate program in November 1994. The buyweb program introduced the concept of click-through purchasing through independent online stores.
Since its inception in mid-1990's, affiliate marketing has come a long way and in the new millennium, we find more complex kinds of affiliate programs all over the internet. The use of advanced tools and marketing style - both have changed a lot. It is a matured medium of advertising now and with the use of such tools as cookie stuffing, data feed and like affiliate marketing is going to add new dimensions to the web marketing scenario.

Secrets of selling on commission

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From the advertiser perspective

Pros and cons

Merchants favor affiliate marketing because in most cases it uses a "pay for performance" model, meaning that the merchant does not incur a marketing expense unless results are accrued (excluding any initial setup cost).[15] Some businesses owe much of their success to this marketing technique, a notable example being Amazon.com. Unlike display advertising, however, affiliate marketing is not easily scalable.[16]
[edit] Implementation options

Some merchants run their own (i.e., in-house) affiliate programs using popular software while others use third-party services provided by intermediaries to track traffic or sales that are referred from affiliates (see outsourced program management). Merchants can choose from two different types of affiliate management solutions: standalone software or hosted services, typically called affiliate networks. Payouts to affiliates or publishers are either made by the networks on behalf of the merchant, by the network, consolidated across all merchants where the publisher has a relationship with and earned commissions or directly by the merchant itself.
[edit] Affiliate management and program management outsourcing
Main article: Affiliate manager

Successful affiliate programs require significant work and maintenance. Having a successful affiliate program is more difficult than when such programs were just emerging. With the exception of some vertical markets, it is rare for an affiliate program to generate considerable revenue with poor management or no management (i.e., "auto-drive").

Uncontrolled affiliate programs did—and continue to do so today—aid rogue affiliates, who use spamming,[17] trademark infringement, false advertising, "cookie cutting"[citation needed], typosquatting,[18] and other unethical methods that have given affiliate marketing a negative reputation.

The increased number of Internet businesses and the increased number of people that trust the current technology enough to shop and do business online allows further maturation of affiliate marketing. The opportunity to generate a considerable amount of profit combined with a crowded marketplace filled with competitors of equal quality and size makes it more difficult for merchants to be noticed. In this environment, however, being noticed can yield greater rewards.

Recently, the Internet marketing industry has become more advanced. In some areas online media has been rising to the sophistication of offline media, in which advertising has been largely professional and competitive. There are significantly more requirements that merchants must meet to be successful, and those requirements are becoming too burdensome for the merchant to manage successfully in-house. An increasing number of merchants are seeking alternative options found in relatively new outsourced (affiliate) program management (OPM) companies, which are often founded by veteran affiliate managers and network program managers.[19] OPM companies perform affiliate program management for the merchants as a service, similar to advertising agencies promoting a brand or product as done in offline marketing.
[edit] Types of affiliate websites

Affiliate websites are often categorized by merchants (i.e., advertisers) and affiliate networks. There are currently no industry-wide accepted standards for the categorization. The following types of websites are generic, yet are commonly understood and used by affiliate marketers.

* Search affiliates that utilize pay per click search engines to promote the advertisers' offers (i.e., search arbitrage)
* Comparison shopping websites and directories
* Loyalty websites, typically characterized by providing a reward system for purchases via points back, cash back
* CRM sites that offer charitable donations
* Coupon and rebate websites that focus on sales promotions
* Content and niche market websites, including product review sites
* Personal websites
* Weblogs and website syndication feeds
* E-mail list affiliates (i.e., owners of large opt-in -mail lists that typically employ e-mail drip marketing) and newsletter list affiliates, which are typically more content-heavy
* Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website
* Shopping directories that list merchants by categories without providing coupons, price comparisons, or other features based on information that changes frequently, thus requiring continual updates
* Cost per action networks (i.e., top-tier affiliates) that expose offers from the advertiser with which they are affiliated to their own network of affiliates
* Websites using adbars (e.g. Adsense) to display context-sensitive, highly relevant ads for products on the site
* Virtual Currency: a new type of publisher that utilizes the social media space to couple an advertiser's offer with a handout of "virtual currency" in a game or virtual platform.
* Video Blog: Video content which allows viewers to click on and purchase products related to the video's subject.

[edit] Publisher recruitment

Affiliate networks that already have several advertisers typically also have a large pool of publishers. These publishers could be potentially recruited, and there is also an increased chance that publishers in the network apply to the program on their own, without the need for recruitment efforts by the advertiser.

Relevant websites that attract the same target audiences as the advertiser but without competing with it are potential affiliate partners as well. Vendors or existing customers can also become recruits if doing so makes sense and does not violate any laws or regulations.

Almost any website could be recruited as an affiliate publisher, although high-traffic websites are more likely interested in (for their own sake) low-risk cost per mille or medium-risk cost per click deals rather than higher-risk cost per action or revenue share deals.[2

Compensation methods

Predominant compensation methods

Eighty percent of affiliate programs today use revenue sharing or cost per sale (CPS) as a compensation method, nineteen percent use cost per action (CPA), and the remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM).[13]
[edit] Diminished compensation methods

Within more mature markets, less than one percent of traditional affiliate marketing programs today use cost per click and cost per mille. However, these compensation methods are used heavily in display advertising and paid search.

Cost per mille requires only that the publisher make the advertising available on his website and display it to his visitors in order to receive a commission. Pay per click requires one additional step in the conversion process to generate revenue for the publisher: A visitor must not only be made aware of the advertisement, but must also click on the advertisement to visit the advertiser's website.

Cost per click was more common in the early days of affiliate marketing, but has diminished in use over time due to click fraud issues very similar to the click fraud issues modern search engines are facing today. Contextual advertising programs are not considered in the statistic pertaining to diminished use of cost per click, as it is uncertain if contextual advertising can be considered affiliate marketing.

While these models have diminished in mature e-commerce and online advertising markets they are still prevalent in some more nascent industries. China is one example where Affiliate Marketing does not overtly resemble the same model in the West. With many affiliates being paid a flat "Cost Per Day" with some networks offering Cost Per Click or CPM.
[edit] Performance marketing

In the case of cost per mille/click, the publisher is not concerned about a visitor being a member of the audience that the advertiser tries to attract and is able to convert, because at this point the publisher has already earned his commission. This leaves the greater, and, in case of cost per mille, the full risk and loss (if the visitor can not be converted) to the advertiser.

Cost per action/sale methods require that referred visitors do more than visit the advertiser's website before the affiliate receives commission. The advertiser must convert that visitor first. It is in the best interest for the affiliate to send the most closely targeted traffic to the advertiser as possible to increase the chance of a conversion. The risk and loss is shared between the affiliate and the advertiser.

Affiliate marketing is also called "performance marketing", in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding targeted baselines.[14] Affiliates are not employed by the advertiser whose products or services they promote, but the compensation models applied to affiliate marketing are very similar to the ones used for people in the advertisers' internal sales department.

The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser's website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect signs the contract or completes the purchase

Affiliate marketing

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Internet marketing
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Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. Examples include rewards sites, where users are rewarded with cash or gifts, for the completion of an offer, and the referral of others to the site. The industry has four core players: the merchant (also known as 'retailer' or 'brand'), the network, the publisher (also known as 'the affiliate'), and the customer. The market has grown in complexity to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third parties vendors.

Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization, paid search engine marketing, e-mail marketing, and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.

Affiliate marketing—using one website to drive traffic to another—is a form of online marketing, which is frequently overlooked by advertisers. [1] While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies.[2]

Issues for the Future

Lastly, we identify two areas that policy makers and managers need to address when considering the possibilities of the NII: freedom of market access and the potential for value chain configuration.

Market Access
Because of the vast volume of economic activity that will take place on the NII once fully implemented, policy makers need to set guidelines for the three areas where access may be restricted:

The Electronic Market. If the market maker owns or has a substantial interest in any suppliers, it can bias the market in their favor and both the consumer and other suppliers will be disadvantaged. In the airline reservation system, the airline market maker was stopped from continuing this tactic (Copeland & McKenny, 1988).

Electronic Channels. If the owner of a physical communication channel such as TCI, a long distance carrier, or a regional telephone operating company restricts access to any market channel because of interest in other specific market channels, it limits a consumer's free access. The potential, but dissolved, TCI-Bell Atlantic merger posed such a threat, since both own electronic channels into the home. Moreover, TCI has substantial interest in market suppliers of entertainment programming and home shopping. Thus they could have restricted access to producers, retailers, and market makers to suit their own economic interests. In addition, the channel owner, which also has a monopoly on supplying information to the consumer, can keep access costs unnaturally high and curtail the rate of technology advancement, as when AT&T maintained a total monopoly in telecommunications.

Regardless of how many channels are connected to consumers' homes, for the electronic market effect to occur, those channels must not limit or control access to the product or service providers wanting to reach the home.

The Market Choice Box. By design the market choice box can exhibit access to or from the consumer. It is not at all clear that the hardware processor, operating system, or other architectures that have dominated the PC evolution will maintain that status on the NII. The computing capabilities and innovation required in an operating system and user interface for interactive multimedia may result in new designs. Dominant architectures, such as IBM's in the 1960s through the early 1980s and now Intel's and Microsoft's, have demonstrated the economic benefits of ownership most clearly. However, the architectures were limited in their revenue potential to the information industry, whereas architectures that may control electronic transactions on the NII may have the ability to tap a vastly larger revenue stream of retail transactions to the consumer. Openness then becomes not only desirable but essential. However, we need to understand what openness means in terms of the market choice box.

In summary, stakeholders in the NII evolution need to think about the consequences of market constraint, and what legislative and other policies are needed to ensure a fair playing field. Moreover, stakeholders, such as consumer goods manufacturers, have as many interests in this evolution as do telecommunications and information technology companies.

Value Chains Opportunities and Risks

One may identify four areas of opportunity and risk for stakeholders in the above described scenario:

1. Benefits to the consumer. The consumer will have free market access to all suppliers willing to pay an interconnection cost. The consumer will have maximum choice at lower price. If and when interactive agents are feasible, the consumer will have access to a market price without market-maker profits attached, but with the more efficient levels of market pricing from single channel suppliers.
2. Lower coordination costs throughout the industry value chain. Electronically linked producers and retailers will be able to lower their costs by reducing intermediary transactions and unneeded coordination because of electronic transactions directly with the consumer.
3. Lower physical distribution costs. Delivery costs will be minimized in two ways. Firstly, information will be transmitted electronically and much lower electronic distribution costs will be substituted. Secondly, as each element of the industry value chain is bypassed, a physical distribution link and related inventory carrying costs will be eliminated (Cf., Figure 1, value chains 2 and 3).
4. Redistribution and potential reduction in total profits. The lesson of the airline reservation systems, the initial behavior of Schwab's OneSource, and market economics indicate that many companies will need to face smaller profit margins. Such smaller profit margins may be compensated for by increased volume.

markets

The consumer is the wild card in this scenario. Transaction costs theory requires cost savings that satisfy both parties in the transaction. An Office of Technology Assessment (1994, pp. 30-31) study describes a consumer purchase from a transaction cost perspective:

Consider markets in the context of a consumer buying a high-end stereo system. The buyer mulls over the features that are important--wattage, audio performance, appearance, size, speakers, CD player, tape deck, and cost. There may be hundreds of dealers to choose from. The consumer reads catalogues, compares specifications, consults Consumer Reports, calls for price information, and visits dealers to compare models and prices. The search can take hours, days, or weeks. The time spent in research, comparative shopping, and making the deal are the transaction costs, as are the expense for fuel, wear and tear on the automobile ["as well as the psyche"-- authors' comment], magazine and catalogue purchases, and telephone charges.

The potential changes in the consumer's behavior as he or she takes advantage of the cost opportunities are on such a large scale, and the electronic transaction capabilities currently available so rudimentary, that our understanding of what the consumer will do is, at best, cloudy. There is some evidence that consumers will choose alternative forms of transactions (catalogue and television shopping networks) over retail store transactions, because of price, high quality, selection choice, and time savings considerations.

The evolving information superhighway infrastructure links:

* Producers of information, including computer software, books, movies, music, etc.
* Producers of physical goods, including all manufactured goods now sold through catalogues and those in which computer technology can simplify product complexity and reduce asset specificity.
* Electronic retailers, differentiated into speciality retailers like Blockbuster or multi-product retailers like Lands' End, Sears, Macy's, etc.
* Electronic markets, expanded by market makers to include the travel and financial industries and specialty niches (e.g., shirts, personal computer software, or baseball cards).
* Physical distribution networks, simplified to move from the manufacturer to the consumer directly, or coordinated by electronic retailer or market maker transactions. The future delivery system might resemble the process that catalogue vendors use now, mostly via Federal Express or United Parcel Service. When next-day delivery is satisfactory, such companies can provide the desired service. When faster delivery is required, such as when ordering the week's groceries, variants like picking them up at the supermarket depot may emerge.
* Electronic channels, i.e., cable, telephone, cellular and electric utility industries that can provide access to the home. Although a choice of electronic channel is still limited, market dynamics are unfolding rapidly (e.g., wireless channels).
* The market choice box, where a vast amount of electronic commerce will be channeled and controlled. This is a server that manages the configuration of workstations, telephones and television sets in the home, and provides a telecommunication interface to those channels that directly reach the home (see Figure 3). The box will present a choice of markets and other activities such as entertainment, shopping, surfing the Internet, etc. It is anyone's guess how the primary graphical user interface (GUI) will be designed, although it is known that several corporations are working toward such devices. It is important not to bias the consumer to one choice over another, as the initial airline reservation system did for flight choice. Gilder (1993) suggested that the ideal GUI may be a newspaper format, an interface designed for human interaction that has indeed passed the test of time. For example, we read a headline, skip to sports, back to the financial page, advertisements catch our attention and we study them in greater detail in order to gain more product information. The primary GUI may also be adaptable to our life styles and it is conceivable that each class of market choice may require a GUI to help explore its potential. An example of such a possible market choice box may be General Magic's Telescript user interface. Such an interface would let the consumer put an interactive agent into the Travel Store on Main Street that would purchase flight tickets and act as a pseudo-electronic market potentially by-passing APOLLO, SABRE, and the travel agents. It is reasonable to speculate that user interface owners, such as General Magic, would like to appropriate a portion of the resulting value chain and market-maker savings rather than share them with the consumer. This scenario demonstrates easily how the market choice box and standards associated with market choice (labeling of catalogue items, marketing of client/server software for products such as Telescript) can all affect the openness of information and market access.

Transactions

Once the consumer is interactively reconfigured, a value chain may occur, resulting in potential savings in transaction costs and potential substantial savings for the consumer. Following we present relevant NII elements and discuss several areas where companies can realize opportunities to economize along the industry value chain.

Figure 2 depicts various stakeholders and their linkages to the NII. This figures shows not only the electronic linkages, but the physical distribution chains for goods and services which are assumed to exist.

An Industry Value Chain Evolving within the NII

Once the consumer is interactively reconfigured, a value chain may occur, resulting in potential savings in transaction costs and potential substantial savings for the consumer. Following we present relevant NII elements and discuss several areas where companies can realize opportunities to economize along the industry value chain.

Industry Value Chains

It is important to explore how purchasing and selling transaction patterns are likely to change and how selling prices will be affected. Figure 1 depicts three variants of traditional value-added chains and the resulting growth in value added and selling price. It should be noted that the authors consider here only industry value chains terminating with the consumer, as opposed to intermediate goods value chains. The example used here, i.e., the purchase of a high-quality shirt, is based on actual data (Thornton, 1994) not even involving electronic sales channels. It is highly likely that actual costs savings to the consumer may even be higher than depicted here. The first chain in Figure 1 depicts the traditional chain of market hierarchies, i.e., producer, wholesaler, retailer and consumer. An alterative chain, the second chain, bypasses the wholesaler, resulting in a lower purchase price for the consumer. When appropriate information technology can reach the consumer directly, as shown in the third chain, the manufacturer can utilize the NII and leap over all intermediaries. In reality, the manufacturer is likely to retain as high a portion of the savings enjoyed by the consumer, unless, of course, market forces make this impossible.

An additional scenario is conceivable and highly likely to emerge: With the NII unfolded, the consumer could easily access a sufficient number of single-source sales channels through a market choice box or an interactive agent to search shirt manufacturers for a suitable shirt. In this setting, the market maker effect may give the consumer a minimum price, but the market maker would not have a significant transaction profit (Bakos, 1991, p. 301).

In yet another scenario, the consumer could access a set of single-source sales channels through a market choice box or an interactive agent to search shirt manufacturers for the desired shirt. In this setting, the market-maker effect may give the consumer the lowest price; in turn, though, the market-maker would not have a significant transaction profit ("Hopes and fears ..., " 1994).

Emergence of Electronic Single-Source Sales Channels

The emergence of electronic single-source sales channels can presently be observed within industry and is well described in the popular business press and trade journals. Little, however, is being reported with regard to the larger picture of the developments, i.e., the overall expansion of electronic markets. We would like to offer several explanations:

1. Impact of interorganizational value chains. Firms readily envision opportunities in electronic interorganizational value chains for improving their respective competitiveness. Thus they choose hierarchical arrangements rather than lower cost market transactions with less control of the factors noted above. In an effort to integrate supply chains electronically, buyer-supplier links such as electronic data integration transactions produce inventory and coordination savings for large purchasers and the suppliers, in turn, are forced to accommodate. Well- known examples depicting this development can be found with Wal-Mart's supply chain, as well as in the relationship with auto manufacturers and their suppliers. Single-source sales channels for travel agencies such as Rosenbluth Travel have expanded their business through agency partnerships in countries where they share a common process and database for tracking customers around the world. In this fashion Rosenbluth can provide them with the lowest prices and emergency services (Miller et al., 1993). This travel agency then is an example of the last evolutionary stage predicted for electronic single-source sales channels, a shared data base between partners.

2. Fear of profit margin deterioration. Firms can be expected to be very cautious about giving up their single-source sales channel profit margins, at least until a virtual market has clearly been created with enough participants to force their entry. This is especially the case when an oligopoly of relatively large firms controls a market in which each would risk sizable market share and profit margin in an electronic market. In the case of electronic markets for travel reservation systems, there is evidence that the profits of former sales channels (the airlines) are drastically reduced, while the profits of the market maker (e.g., SABRE, APOLLO) remain high.

Bakos (1991) has analyzed why the electronic market effect drives profit margin from the supplier. In price-competitive markets, even a small cost of search on the buyer's part may enable sellers to maintain prices substantially above their marginal costs: in this scenario, the introduction of a market system providing price information can dramatically reduce seller profits and increase buyer welfare. According to Bakos (1991, p. 300), this effect, which is supported in economic theory, can be anticipated in undifferentiated markets such as commodity markets and is evidenced by the examples of Reuters, Quotron and Telerate, all with established markets in U. S. Government fixed-income securities, leading to a reduction in trader profits from large bond dealers.

Additional evidence is needed to demonstrate clearly the market maker effect, i.e., the phenomenon in which the consumer does very well, yet producers lose their profit margin and the market makers gain the remaining profits. This scenario suggests that producers may find it hard to generate sustainable profits without finding new strategies for product and service differentiation.

Even though such losses are widely recognized, electronic markets continue to proliferate and expand such as in financial markets, commodities and, as already noted, in the travel industry. Electronic markets have also encroached upon traditional niche markets where there are no large single-sources sales channel suppliers with high market share to protect, such as airplane spare parts.

Schwab's OneSource mutual fund market shows additional support of the market maker effect. OneSource's equity in mutual funds has grown rapidly to $10 billion in assets ("The Next Giant ...," 1994). Within the mutual fund industry, Schwab, the market maker, is perceived as threatening and growing too large and gaining control of a significant share of its operating margin. One must consider that a typical no-load fund receives a .5 percent fee for assets it manages for customers. To belong to OneSource, the fund pays Schwab half of its fee, i.e., about $0.25 for each dollar equity. Given that the largest four no-load funds currently have around $700 billion in assets under their control, movement of only the $10 billion under Schwab's current control represents a $25 million shift in operating margin to Schwab. Fidelity, the largest no-load fund, has set up for protection an equivalent market. Now no-load purchasers can buy from several smaller markets as well.

Consequently, the market maker effect may threaten the mutual fund industry's profits in the same way it did in airline reservation systems. It may require, however, competitive market makers in no-load funds to prevent market deterioration in no-load funds. Only time will tell how strong the market maker effect will be in the mutual fund industry.

A few examples that may actually be viewed as precursors of things to come will illuminate this future setting. Rapid growth in catalogue and cable shopping networks suggests that (1) there are many products meeting the criteria for electronic markets, i.e., low asset specificity and ease of description, and (2) consumers are willing to buy these products without going to a retail store. QVC, the highly successful cable television shopping channel, has been said to move goods at the rate of $39 per second by broadcasting pitches around the clock. These trends are causing retail market erosion and illustrate how electronic markets may affect consumer markets in time. Catalogue marketers such as Lands' End sell an enormous amount of merchandise. There were 10,000 mail order companies in the United States in 1992, selling $51 billion worth of goods through the catalogues (Brubach, 1993).

Until the appropriate technology opens its doors, electronic sales channels and, in turn, electronic markets will be unable to make significant inroads with the consumer. It follows that homes must be wired for interactive, high-quality video so consumers have a friendly, flexible way to access markets. These required technologies are evolving rapidly and the emerging NII is one organizer of these technologies. Current traditional retailing markets are not likely to change significantly until a critical mass of consumers will be connected via numerous channels to the evolving industry value chain.

Transaction Cost Theory

Transaction cost theory helps us to understand how markets and hierarchies are chosen. In free market economies one can observe two basic mechanisms for coordinating the flow of materials and services through adjacent steps in the value chain: markets and hierarchies (Malone et al., 1987; Picot & Kirchner, 1987). Williamson (1981, pp. 1545-1551) classifies transactions into those that support coordination between multiple buyers and sellers, i.e., market transactions, and those supporting coordination within the firm, as well as industry value chain, i.e., hierarchy transactions.

The price a product is sold for consists of three elements: production costs, coordination costs and profit margin. Throughout the relevant literature, scholars often choose different terms to describe coordination costs; Chandler, e.g., labels them as administrative costs. The authors prefer the definition of production and coordination costs chosen by Malone et al. (1987):

Production costs include the physical or other primary processes necessary to create and distribute the goods or services being produced.

Coordination costs include the transaction (or governance) costs of all the information processing necessary to coordinate the work of people and machines that perform the primary processes. For example, coordination costs include determining the design, price, quantity, delivery schedule, and similar factors for products transferred between adjacent steps on a value chain.

Economic theory and actual market behavior assert that firms will choose transactions that economize on coordination costs. As information technology continues its rapid cost performance improvement, firms will continue to find incentives to coordinate their activities electronically. Often, this coordination takes the form of single-source electronic sales channels (one supplier and many purchasers coordinated through hierarchical transactions) or electronic markets (Malone et al., 1987). It follows too that electronic markets are more efficient forms of coordination for certain classes of product transactions. Utilizing cheap coordinative transactions, interconnected networks and easily accessible databases, economic theory predicts that a proportional shift of economic activity from single-source sales channels to electronic markets is likely to occur, as lower coordination costs favor electronic markets. Low cost computation favors electronic markets by simplifying complex product descriptions and reducing asset specificity. An evolution from manufacturer-controlled value chains to electronic markets can be anticipated. Stakeholders will opt for markets when increased volume is greater than loss in revenue from electronic market effect.

The above four explanations can already be observed in a number of applied settings. Competing computerized reservation systems (e.g., American Airlines' SABRE CRS), certain firms within financial markets, commodity markets and various niche markets have undergone the described shifts from hierarchies to markets. Firms like Dell, Gateway and Compaq have been able to lessen personal computer product specificity and have been highly successful in selling through mail-order channels. Electronic single-source channels will evolve from separate databases within the firm, to linked databases between firms (Electronic Data Interchange), to shared databases between firms. In time electronic markets will evolve from electronic single-source sales channels to biased markets where the market maker is one of the providers. In such markets, the market maker uses the market transaction mechanisms in its favor. Next, there will be a shift to unbiased markets and finally to personalized markets where customers can use customized aids in making their choices.