2. Literature Review
The literature overview represents available theories and models help to understand affiliate marketing as well as the activities of content providers. Among the different scholars on affiliate marketing Hoffman and Novak (2000), Fiore (2000), Gallaugher et al (2001), Chaffey (2003), Libai et al. (2003), Duffy (2005), Donna McCarthy (2009) are famous who have the theoretical contributions on such type of marketing. Hoffman and
Novak (2000) claim that by employing affiliate marketing, merchants can let thousands of independent websites, called also content providers, to display ads for its products
Hossan & Ahammad and only pay them when the ad would actually lead to a sale. In affiliate marketing advertising costs move from fixed to variable costs, which can facilitate allocating money to advertising. Fiore (2000, p. 300) remarks that specific employment of affiliate marketing are storefronts where content providers can sell other company’s products …show more content…
Some disadvantages are observed in affiliate marketing. Accounts of false and misleading types of advertising that lead to unjust claim and also complaints people.
The shady and illegal practices involved in this kind of business include false advertising, unlawful use of trade names, logos, or other branding, spamming and hijacking. Merchants sometimes intentionally close down programs without informing the affiliates and paying commissions. Sometimes affiliates engage in false advertising and misleading the customer in order to get commission. This means that some affiliates sometimes make claims and promises regarding the product and services which are completely wrong or they extremely exaggerate it. When this happens, the merchant usually suffers complaints and they definitely lose potential customer. As affiliate ads pay out on results, content providers do not have any guarantees that they will make money. They may have to try a number of different affiliates to find those that their visitors respond to. Content providers should have a good idea of the profile of people that visit their site to ensure their target customers appropriately. The time