Deck 7: Taking Advantage of Affiliate Marketing

Question 1

Affiliate marketing is a revenue-sharing approach to marketing that involves paying other e-businesses to promote an e-business.

Answer 1

True

Question 2

An e-business that operates an affiliate program is called an affiliate, associate, or publisher.

Answer 2

False

Question 3

An e-business that participates in an affiliate program is called a merchant or advertiser.

Answer 3

False

Question 4

Another name for a pay-per-click affiliate program is a cost-per-click affiliate program.

Question 5

A successful affiliate Web site typically offers viewers information, entertainment, products, or services that complement the products and services offered at the merchant site.

Question 6

An entrepreneur that operates an information-only Web site or publishes an e-mail newsletter or blog can use an affiliate program to generate revenues.

Question 7

An affiliate site is linked to the merchant site with customized hyperlinks.

Question 8

The most high profile and successful affiliate program to appear in the mid-1990s was the Amazon.com Associates Program.

Question 9

E-business affiliate programs are electronic versions of the traditional sales referral programs used by many different types of brick-and-mortar businesses.

Question 10

The two major advantages an affiliate program offers its affiliates are (1) the affiliate is able to measure marketing efforts and (2) the affiliate pays only for results.

Question 11

One approach a merchant can take to operating a successful affiliate program is to acquire a huge and diverse affiliate membership.

Question 12

The only way to develop a successful affiliate program is to focus on acquiring a huge and diverse affiliate membership.

Question 13

In a typical affiliate program, a small percentage of affiliates generate the majority of the traffic and sales for the merchant.

Question 14

Affiliate programs offer an income opportunity for entrepreneurs who don't want to worry about the logistics of handling products or managing services.

Question 15

Some e-business entrepreneurs use affiliate programs as their sole Web site revenue source.

Question 16

An entrepreneur's first step in selecting an affiliate program in which to participate is to carefully read the affiliate agreement.

Question 17

It is unlikely that a visitor to an affiliate's site will evaluate that site based on his or her experience when they click through to the merchant's site.

Question 18

An affiliate agreement which defines all aspects of the affiliate program is created by the affiliate and agreed to by the merchant.

Question 19

An affiliate agreement should specify the length of time from the initial click-through to the completed purchase during which the affiliate will get credit for the purchase.

Question 20

Some affiliate agreements may have provisions that restrict the type of marketing tools an affiliate can use to drive traffic to its site.

Question 21

An affiliate tracking system allows a merchant to control how it credits its affiliates for click-throughs.

Question 22

An affiliate tracking system records and stores affiliate information and provides commission or fee reports.

Question 23

An affiliate management network is a third-party entity that recruits affiliates and manages the affiliate tracking process for multiple merchants.

Question 24

Commission Junction and LinkShare are two well-established affiliate management networks.

Question 25

Affiliate tracking systems generally use customized links containing an affiliate's identification code to track click-throughs.

Question 26

A merchant that operates its own affiliate program can install third-party tracking software or use an affiliate tracking service provided by an ASP.

Question 27

Affiliate tracking systems rarely use cookies to track click-throughs.

Question 28

Cookie stuffing occurs when an unethical affiliate sends unsolicited e-mail advertising on behalf of the merchant in order to drive traffic and boost sales.

Question 29

The CAN-SPAM Act of 2003 holds the merchant responsible for spam sent by unethical affiliates.

Question 30

An affiliate program in which the merchant pays the affiliate a percentage of a visitor's purchase is called a:

A) .pay-per-click program
B) .pay-per-sale program.
C) pay-per-lead program .
D) pay-per-click program

Question 31

An affiliate program in which the merchant pays the affiliate a set fee each time a visitor clicks through to the merchant's site, whether or not the visitor takes any action at the site is a:

A) pay-per-click program
B) pay-per-lead program
C) pay-per-sale program
D) none of the above

Question 32

An affiliate program in which the merchant pays the affiliate a set fee for each visitor who clicks through and takes an action at the merchant's site, such as completing an online survey or registering for a newsletter is a:

A) pay-per-click program
B) pay-per-sale program
C) pay-per-action program
D) pay-per-lead program

Question 33

An affiliate marketing program is sometimes called a(n):

A) pay-for-play program
B) marketing-for-fee program
C) pay-for-performance program
D) share-that-revenue program

Question 34

An e-business that operates an affiliate program is sometimes called a(n):

A) advertiser
B) associate
C) publisher
D) affiliate

Question 35

An e-business that participates in an affiliate program is called a(n):

A) affiliate
B) associate
C) publisher
D) A,C

Question 36

The small number of affiliates who generate the majority of the traffic and sales for a merchant often receive special benefits as:

A) big affiliates
B) major affiliates
C) super affiliates
D) large affiliates

Question 37

Which of the following participants in an affiliate program transaction earns revenues from the transaction?

A) the merchant
B) the affiliate
C) the customer
D) None of the above

Question 38

The first step in participating in an affiliate program is to:

A) build traffic at your site
B) understand the terms of the affiliate agreement
C) add the affiliate program links to your Web pages
D) select the merchant and affiliate program that offers the best "fit"

Question 39

An affiliate program is defined by the terms and conditions of its:

A) merchant agreement
B) affiliate agreement
C) sales agreement
D) commission agreement

Question 40

The structure and terms of commissions or fees is detailed in an affiliate program's:

A) commission agreement
B) sales agreement
C) affiliate agreement
D) merchant agreement

Question 41

A merchant may pay its affiliates via:

A) check
B) direct deposit
C) credit toward purchases
D) a-c

Question 42

An affiliate's success in generating revenue through affiliate programs depends on its ability to:

A) send unsolicited e-mail advertising
B) install parasiteware on visitors' computers
C) attract visitors to its site
D) install blocking software on visitors' computers

Question 43

Which of the following well-known e-businesses operates its own affiliate program?

A) Amazon.com
B) Rackspace Managed Hosting
C) Best Buy
D) 1-800-FLOWERS.COM

Question 44

A third-party entity that recruits affiliates and tracks click-throughs for multiple merchants is a(n):

A) affiliate tracking system
B) affiliate agreement
C) affiliate commission provider
D) affiliate management network

Question 45

_______________marketing is a revenue-sharing approach to marketing.

Question 46

An affiliate program is a(n)_______________tool for the e-business that operates it.

Question 47

When a visitor at an affiliate site_______________through to the merchant's site via a customized link, the affiliate typically earns a fee or commission.

Question 48

Some_______________affiliate programs have a residual component that enables the affiliate to continue to earn commissions on subsequent sales to the same visitor.

Question 49

E-business affiliate programs first appeared in the mid-_______________.

Question 50

_______________programs leverage other Web sites to drive potential customers to a merchant's site.

Question 51

Affiliate programs represent a(n)_______________opportunity for e-businesses that sell products or services to a niche market.

Question 52

An entrepreneur should learn as much as possible about the affiliate programs in which he or she is interested and the_______________that operate them.

Question 53

The online_______________form for membership in an affiliate program typically asks for account information such as name, address, contact numbers, and a tax ID number.

Question 54

An affiliate_______________is created by the merchant and agreed to by the affiliate.

Question 55

Some affiliate agreements limit the type of marketing_______________an affiliate can use to attract visitors to the affiliate's site.

Question 56

An affiliate_______________system allows a merchant to control how it credits its affiliates for click-throughs.

Question 57

Handling all the details of an affiliate_______________can be expensive and time-consuming; therefore, some merchants contract with a third-party to manage the details.

Question 58

An affiliate_______________network is a third-party entity that manages all the details of an affiliate program for multiple merchants.

Question 59

In return for its management services, a(n) affiliate management_______________collects from the merchant a percentage of each referral transaction's fee.

Question 60

For an affiliate program to operate effectively, each_______________must be tracked in order to pay the affiliate its commission or fee.

Question 61

The tracking information that identifies the affiliate is included in the_______________that merchant provides to the affiliate.

Question 62

If a merchant is part of an affiliate management network, the affiliate_______________contain information that identifies both the affiliate and the destination merchant site.

Question 63

A merchant that participates in an affiliate management network can rely on the network's_______________to collect and track click-through information.

Question 64

The two primary challenges faced by merchants to their affiliate programs are _______________affiliates and the negative perceptions about tracking technologies.

Question 65

Cookie_______________occurs when an unethical affiliate places multiple cookies containing its commission codes on a visitor's computer during a single visit to the affiliate's site.

Question 66

_______________is a kind of spyware that redirects affiliate links on a visitor's computer or replaces the content of affiliate-tracking cookies stored on a visitor's computer.

Question 67

Merchants who operate an affiliate program should be aware that sending spam is both unethical and_______________.

Question 68

Legitimate merchants and ethical affiliates understand that sending_______________messages to promote their Web sites generates a negative impression in the minds of most consumers.

Question 69

One of the biggest challenges facing merchants and their affiliates is the use by consumers of_______________that blocks or deletes tracking cookies.

Question 70

Discuss how an affiliate marketing program can be both a marketing tool and a source of revenue.

Question 71

Describe how an affiliate program with a huge and diverse membership can benefit all parties to a click-through transaction: the merchant, the affiliate, and the site visitor.

Question 72

Describe at least three guidelines that a merchant can follow to help ensure affiliates' satisfaction with its affiliate program and to make the program more attractive to potential affiliates.

Question 73

Describe the four steps that an e-business should follow to get the most out of its participation in an affiliate program.

Question 74

List at least five terms and conditions typically included in an affiliate agreement