Affiliate program (or so called, partner program) – is a form of business cooperation between the seller and partners, in which the partners attract visitors to the merchant site and receive bonuses as a percentage or a fixed amount for any specified action (such as visiting certain pages, filling out of forms, purchasing of goods).

According to the legend, the idea of paying commissions to partner sites for various activities with the users they brought, firstly came to Jeff Bezos. He is an owner of the largest online store named Amazon. It happened during a conversation at a dinner party in the mid 90’s. We can not say that this idea was a novel because a network of distributors, who distribute goods of a big seller, is a standard technique in offline business. However, it was necessary to implement a partnership scheme in the Internet and create a large network of partner sites, which would bring buyers to www.amazon.com. I must say that the task was performed with brilliance and the number of partners of Amazon has exceeded 500,000 people already by 2000. One can only imagine how much sales increased.

The Bezos invention was the starting point for the development of new industry in the Internet, known as affiliating marketing. Today, the industry includes a directory of affiliate programs, forums for partners and owners of companions, specialized mailing and affiliate networks; there are professions like the manager of the affiliate program and super affiliate that is to say professional partner. The affiliating marketing attracts a growing number of participants each year: tens of thousands of sites create new affiliate programs, millions of websites – from homepages to such monsters as Look Smart and Yahoo – have become partners.

According to Forester Research firm, 20% of the total turnover of e-commerce is made by partners. Even more imagination amazed are the following statistical calculations: eMarketer and Forester Research showed that in 2004 the turnover of the online advertising market reached $ 22 billion, 54% of which, that is to say, more than $ 11 billion were spent on affiliating marketing. Now we can not imagine a solid e-commerce site, which does not have an affiliate program.

Further development of partnership programs in the West is likely to go on the way of relationships between vendors and partners improving. Increasingly there are partnership proposals where the partners are given the opportunity not only to place on their sites selected links, banners, order forms, but also create unique websites with ready-made design templates, and export the necessary data. There was a clear trend to integration between the parties of affiliating business schemes increasing. New forms of relationships that will be more flexible and efficient will appear there.

There is another interesting aspect of the problem. For many online stores sales volume, produced by partner sites, has become an integral part of the budget. The situation is increasingly approaching the critical point where “the tail begins to wag the dog”. Do not be surprised if there will be informal organizations with names like “Union of professional Amazon affiliates» in the near future, which will make demands to their employers to improve conditions of the affiliate program.

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