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Long before the Net was born, the concept of revenue sharing has been around. Affiliate internet marketing, however, has taken it to new heights, and it's become the conventional advertising technique for web companies.

Online merchants find affiliate promotion highly beneficial thanks to the fact that it presents almost no risk both for the merchant and the "affiliate." The way it works is that the affiliate earns a sort of commission or fixed amount based mostly on the quantity of sales the affiliate brings to the merchant, either thru online links on the affiliates web site - or through email, blogs, rss feeds and many other sorts of on-line communication. Some merchants (only about 1% of affiliate marketing) use a cost-per-click remuneration system, which essentially means that the affiliate earns every time a Web searcher clicks on an advert on their site or e-mail. However, due to conmen utilising this technique (making ad-ware, sending spam, or pointless indexing sites) this type of compensation is not preferred and becomes too dodgy for merchants to use.

Affiliate promotion also doesn't cost the merchant anything to place banners on affiliates' sites, so they only pay if a sale or lead is generated. Merchants also get to set the parameters, and decide on the incentive schemes. It is, thus, a very efficient and cheap way for a business to grow.