Business Case of the Affiliate Marketing Business Model

Business Case of the Affiliate Marketing Business Model

Vesna Damnjanovic (University of Belgrade, Serbia)
DOI: 10.4018/978-1-5225-8575-6.ch018

Abstract

This chapter will provide a description of affiliate marketing models, their advantages and disadvantages. A lot of companies use affiliate marketing models for providing better consumer acquisition and sales results in online arena recommending to other companies or users their products or services. The authors present business case of Catena Media and Askgamblers.com, the leading Casino Affiliate Business Model. Affiliate programs are business that use affiliate marketing to promote their casino worldwide. Today most online casinos offer commissions to private advertisers for sending traffic to their website. They usually use commission-based fee or revenue sharing models to pay affiliates.
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Literature Review Of Affiliate Marketing

The growing acceptance of the Internet among consumers and the growth of online retail sales has resulted in a large number of retailers using online advertising formats. (Purushottam &Amit, 2002). The majority of previous research in this field focuses on how to attract and retain appropriate affiliates (Martin-Gill et al., 2009).

As an online advertising tool, affiliate marketing is mainly aggregated in networks and acts as the middleman between a customer and the company. It can be understood as a business partnership. (Prabhu &Satpathy, 2015) There are many affiliates that build and manage websites to sell the products or services of advertisers. Most advertiser-affiliate relationships are managed through several major networks involving the technology to support tracking activities and the sales transaction. (Duffy, 2005).

Key Terms in this Chapter

Online Gambling: It is internet gambling and includes poker, sports betting and casinos.

Casino: A building or room used for social amusements; specifically: one used for gambling.

Business model: Company's plan for how it will generate revenues and make a profit.

Affiliate Program: Describes a relationship in which a merchant pays you a commission to promote their products on your site.

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