Utilization of Internet Marketing for Distribution

Products distributed is easily found by consumers so that the opportunity for the occurrence of sales transactions also becomes larger. Distribution of a broad and consistent product can also keep prices stable and to minimize the possibility of switching to a product brand to a competitor or substitute products. Consistency of the existence of products is also an important issue in the distribution. Consistency is necessary not only to ensure that the non-occurrence of missed opportunities to sell products because of the occurrence of vacancies, but also to minimize the likelihood of consumers switching to competitors' products or product substitution. In addition to the availability of products are consistently too petrified creation of price stability and minimize the possibility of speculation.

There are seven business models that can be referenced in the application of internet marketing in a company, they are the commission-based, advertising-based, markup-based, production-based, referral-based, subscription-based and fee-for-service-based. Referral-based business model is a business model that makes reference system through the internet as a method to gain profit. One form of the application of this model is to use a popular affiliate system or with the term affiliate internet marketing. Affiliate system utilize a third party site as an affiliate to conduct communication campaigns, product sales or other marketing activities.

In this affiliate system there are three major players that drive this business model. The first offender is usually called the vendor, merchant, advertiser or 'afiliator'. The second offender is known by the term publisher, marketer or 'affiliates'. And last is the affiliate network, network provider or 'agent' who is an intermediary who stands between afiliator and affiliates.

Affiliator is e-commerce site from a company or commercial entity that produce products or services. Afiliator usually have an e-commerce sites equipped with a shopping cart, so they can make direct sales through its website. But to be able to reach internet users numbering in the billions of internet jungle that contain millions of websites, afiliator need the help of other websites that could even become an extension of his hand in conducting marketing activities.

Affiliates are the arm of afiliator that promote or even directly to the sale of products or services belonging to the final consumer afiliator. Sites that become an affiliate is usually in the form of blogs and web sites, both commercial and non-commercial use. In the logic of distribution, a blog that became part of the affiliate system has a role that is almost similar to the store/outlet as conventional retailers in the distribution chain. If the manufacturer-owned outlets sell products to final consumers, then the blog is also doing the same thing. Blog afiliator sell proprietary products to visitors who come to his blog.

Last perpetrator in this affiliate system is a network affiliate or affiliate networks. The affiliate network is an intermediary that connects sites afiliator site (product manufacturers, merchants, vendors, advertisers) and affiliate site (publisher, marketer). Although not all affiliate programs make use of the role of the affiliate network, affiliate network site has a very important role especially for afiliator who want to get affiliate sites quickly. This affiliate network site typically has a database of websites and blogs in bulk, and also worked with a variety of e-commerce sites and merchants who sell products and services online.