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Hand in hand with the growth of e-retail there has been a rise in affiliate marketing. In 2006 E-consultancy estimated the value of affiliate sales to be above £2bn and increasing on average 60% year-on-year. Affiliate marketing is the ideal partner to online retailers as it works like a virtual sales team, paid only on commission.

For online retailers and service providers the use of affiliate marketing has allowed the acquisition of new customers and helped consolidate brands’ positioning in existing markets. Through the management of an affiliate network, affiliate channels have become a very profitable addition to sales and marketing strategies.

There is still work to be done, however. The IAB’s affiliate marketing council, whose members contributed to the development of this guide, have identified that there remains a need to better educate advertisers on affiliate marketing. This guide outlines how the discipline works and highlights the different ways in which affiliate strategies can help brands trading online.[Download]