| The wonderful world of the commerce has | | | | someone views my site, they see Marvin's ad, |
| created the most incredible alphabet soup of the | | | | and I earn something. As schemes go, this is a |
| world has ever known. While this has opened up | | | | sweet one. Seriously, though, this type of |
| opportunities heretofore unheard of, it has also | | | | advertising is unique to the Internet and is a |
| created a great deal of confusion. Let me see if I | | | | rapidly expanding industry. I remember hearing, |
| can alleviate some of that confusion. For example, | | | | when Amazon launched in the mid-1990s, that this |
| while cruising the Internet you will come across | | | | was a flash in the pan and that it wouldn't last. |
| terms such as Epc affiliate marketing, and you will | | | | People had doubts about the whole concept of |
| have no idea what that means. EPC is an | | | | Internet marketing, ranging from security of |
| acronym that stands for earnings per hundred | | | | credit card information to personal data being |
| clicks. | | | | poached; while it is true that there were some |
| Let's say I am an affiliate of | | | | rocky times, on the whole Internet marketing has |
| Another Internet term that you will hear thrown | | | | really taken on a life of its own and is only going |
| about a great deal is cpm. This stands for Cost | | | | to continue to increase over time. I would not say |
| Per (thousand) Impressions. An impression is the | | | | that Ecommerce will replace traditional stores |
| number of times that someone's online | | | | completely, however, but it will certainly continue |
| advertisement is accessed and downloaded by | | | | to be strong competition. a merchants product |
| potential customers. CPM is online ads which are | | | | and for arguments sake lets say this merchant is |
| purchased based on the number of impressions or | | | | called Marvin. My website provides a link or an ad |
| clicks. The price for this form of advertising is | | | | which, when clicked, takes someone to that |
| calculated by multiplying the cpm rate by the | | | | website of which I am affiliated with. For every |
| number of units, and if the unit price is $10 and | | | | 100 clicks, I earn a commission. That's basically all |
| you have a rate of one million impressions, then | | | | I have to do to earn a commission – just |
| you come up with a total price of roughly | | | | feature a link for that web site on my website. |
| $10,000, at which point you divide the cpm by | | | | Sometimes this number is stated as an predicted |
| 1,000, resulting in a price of $.01 per impression. | | | | payout based on historical numbers that resulted |
| Let's get back to Marvin, shall we? Remember, | | | | in a sale. |
| Marvin's ad is on my website, and every time | | | | |