HI Liesha,
That's actually a good question and it raises a couple issues.
1) Google Adwords is the most popular for PPC. They changed the rules quite awhile back and now only will show one ad per domain. So if the merchant or an affiliate already has an ad going to the merchant domain then you need to send your ad to a different domain. Typically you then send the traffic to your own site with a landing page about the product that links to the merchant site. You could also try to leap frog the other affiliate which can be costly and tricky.
2) Some affiliates can convert sales better than the merchant. So a well crafted pre-sell page on your site could help your sales.
3) Some affiliates like to try to capture emails from the traffic they send the merchant so they don't lose the customer and can continue to market to them.
Theres probably more to it than that but thats an overview.
Anyone else want to add something?
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