So far the products offered by affiliate systems typically are limited to products that are digital, such as e-books, software, business opportunities, web hosting and digital music. Still quite difficult to find sites afiliator or manufacturer affiliate program providers who offer non-digital or tangible products. However, that does not mean physical products (non-digital) can not be distributed using this affiliate system. With integrating with conventional distribution network is actually an affiliate system can also be used to distribute the products of non-digital in cyberspace. Furthermore, the synergy of the two concepts earlier in this paper will be referred to as 'virtual distribution'.
In understanding the concept of virtual distribution is non-digital products will be distributed in cyberspace by adopting affiliate internet marketing. For that some adjustments and adaptations need to be done from the conventional concept of distribution to become a virtual distribution, as can be seen in the following table.
The concept of a Virtual Distribution Adjustment Table
As mentioned in the previous section, affiliate sites basically perform the function of conventional retailers on distribution channels. By the same logic then affiliate networks have functions similar to the distributor. Comparison of the distribution chain of conventional and virtual distribution can be seen in the image below.
Comparison of Virtual Distribution with Conventional Distribution Channel
The chart above shows there are some modifications made to the conventional distribution model while the product to be distributed virtually. The main modification is the change in component distributors and outlets to the conventional distribution chains that are physically replaced with distributors and virtual outlets, by adopting the affiliate network site and affiliate sites in the concept of affiliate internet marketing. The implication is that the products will be on display at the outlet was not a physical product as it is commonly found in conventional outlets, but is represented in the form of banners. The real physical products will be delivered after ordering and payment process is completed.
