About a decade ago, a couple of college kids named Jerry Yang and David Filo built a Web site to post their golf scores and favorite Web sites. Pretty soon, their Web site became Yahoo. Tens of thousands of would-be dot-com millionaires tried to follow in their footsteps, but most stumbled.

Beginning on June 1 the state of New York will start charging taxes for online transactions to companies that have no physical presence in that state. There has been a lot of discussion about this issue, how it impacts affiliates and merchants, and whether or not these regulations might be adopted by other states.

All the parties impacted by the statute seem to be taking a different approach to the issue.

In May 2008, JupiterResearch analyst Patti Freeman Evans published a study on affiliate marketing that indicates online marketers will spend $2.1 billion on affiliate marketing fees, with U.S. online affiliate marketing spending reaching $3.3 billion in 2012. That figure includes the aggregate cost of running an affiliate program: affiliate network fees and affiliate commissions. Evans estimates that the affiliate space is growing at 9 percent.

In mid-March of 2008, eBay announced it would be transitioning away from having its massive affiliate program run by a network and instead they would take it in-house.

eBay began its affiliate program in 2001 and had since grown it to the second largest affiliate program in the world, behind Amazon.com's Associate Program.

The eBay Partner Network launched on April 1, and the company started to transition its affiliate program away from Commission Junction. eBay also brought Half.com over to the new network.

When Brent Elias began working at CSN Stores.com in 2002, the Boston-based online home furnishings retailer didn't have an affiliate program. Elias began his career at CSN working in the advertising department on the keywords team. Like many e-tailers, CSN Stores was afraid that affiliate marketing would cannibalize sales from its main online store.

The roles played by each of the key parties in the affiliate marketing space are very clearly defined. Just like a well-oiled machine, each component has its job to do, each ensuring that the industry as a whole functions, if not in harmony, at least in synergy.

Affiliates should drive value added traffic and consumers to a merchant's site.

Networks are considered to be the middlemen that track affiliates' traffic and merchant sales.

Merchants convert that traffic and consumers into sales.

Affiliate managers are there to oil and facilitate the whole process.

Kerri Pollard took over the helm of Commission Junction as general manager over a year ago. Pollard's rise through the ranks - starting at BeFree back in the day and then at CJ as director of publisher services - gives her a wide variety of network experience to draw upon. Since Pollard took over, CJ has undergone some changes.

Lisa Picarille: You've been running Commission Junction for over a year now. What's changed at CJ?

The performance marketing landscape changed dramatically last year when Performics, the third largest network, was sold along with its parent company DoubleClick to search giant Google. After more than a decade in the online marketing space, Performics became the Google Affiliate Network - gaining all the cachet of an association with Google, along with concerns from the privacy advocates about Google having too much information on advertisers and publishers. Chris Henger, group product manager for Google Affiliate Network, addresses those issues and talks about where GAN is headed.

Nearly a year ago, LinkShare president Steve Denton stepped down. The company named co-presidents. Jonathan Levine and Yasuhisa "Yaz" Iida are both veterans of LinkShare's parent company Rakuten.

Lisa Picarille: LinkShare is the only major network to have co-presidents. Give me the break down of your duties.

ShareASale.com founder and CEO Brian Littleton runs what is considered to be the fourth largest performance network in the United States. Littleton has earned the respect of the industry and garnered a dedicated following of merchants and affiliates by taking a firm stand on issues. His company is the only network that does not allow downloadable applications of any kind. His personal style and outspoken views on important issues are reflected in this wide-ranging interview.

LP: How does that impact the company?