Affiliate Marketing is called commission junction. However, it is the practice whereby a digital publisher or website promotes an online retailer and earns a commission based on the sales or leads that the advertising generates for that online retailer. It enables one to find a better option to sustain in future. We term this payment metric CPA – Cost Per Action. Typically an ‘Action’ is a sale of an online good or service, but it can also be a lead or registration, a call, a download or any other action that is desired of the end customer. Affiliate Marketing could be a good choice for online marketers.
There are two ways where CPA is set:
Flat rate: For every action a fixed fee is paid. This is typically used for registration type actions with no cost, such as a credit card sign-up or for a fixed price product like a mobile phone contract.
Revenue share: The price of the item purchased is tracked and a percentage of that price is then paid to the affiliate. This is generally favored by advertisers selling a range of tangible goods at varying prices, such as fashion retailers.
We use the terms ‘Affiliate’ or ‘Publisher’ to define the website that is promoting the brand or products. In later chapters we’ll look more in-depth at the business models that affiliates employ to drive actions for the advertiser. For now, let’s just dispel a common misconception: Affiliate Marketing isn’t just banner advertising, in fact, most campaigns will get less than 10% of their sales as a result of banner advertising. Consumers have learned to ignore these banners, so successful affiliates employ smarter, more engaging tactics to generate sales for the advertisers they work with, with most sales coming from ‘text links’ often hidden behind ‘Buy Now’ or ‘Shop Here’ type buttons. A ‘text Link’ in the affiliate world is just a track URL that redirects to the relevant page of the advertiser’s website.
Affiliate Marketing is part of the performance marketing family, meaning the return on investment is guaranteed and the advertiser is only paying for advertising that has succeeded. It’s a versatile channel and is very effective at driving actions for merchants selling consumer products or services across a wide range of verticals, including apparel, travel, electronics, health and beauty, telecommunications, finance and groceries. It should be considered as a key part of an advertiser’s marketing mix in an integrated campaign, specializing in turning brand awareness and interest into conversions towards the end-of-purchase funnel.
There are many other ways they generate customers. This includes email marketing, mobile apps, paid search, remarketing widgets or campaigns, offline promotions and social campaigns. The scope is almost unlimited. Any publisher or partner paid to promote on a CPA metric could be considered an affiliate.
How does it work technically?
Most advertisers will employ an Affiliate Network to administer the tracking of their Affiliate Campaign. The network will provide a set of tracking links to the affiliates that sit behind the banners and text links on the affiliates’ websites. When the customer clicks on that link a cookie is dropped onto their computer and that click is registered by the Affiliate Network. Affiliate Marketing with Amazon is always rewarding.
In many areas, Affiliate Marketing was initially based around relatively simplistic self-serve platforms that affiliates could access in order to gather the links they needed. This mirrored the early development of Affiliate Marketing in other markets. Affiliate Marketing was initially based around relatively simplistic self-serve platforms that affiliates could access in order to gather the links they needed. This mirrored the early development of Affiliate Marketing in other markets. There are different Affiliate Marketing websites, click bank, Affilorama, Amazon Associates, Commission Junction.
Before choosing a network, one has to consider:
The aim is about defining the reasons why you are entering the Affiliate Marketing space to begin with. It should highlight whether your ultimate goal is to increase market share, increase sales, and gain better ROI or simply to create more brand awareness.
Your objectives will go deeper into the aim you have specified. For example if your aim was simply more sales then you would define those numbers, such as, increasing sales by 15%, realized at about 500 extra sales per month achieving a good target.
Unless you are clear as to how you want your Affiliate Program to run this is where a network can advise of the most consistently effective strategy to implement. This can be in the form of a 90-day launch strategy where the network outlines clearly what needs to be done in each week to engage publishers and meet your objective. This will depend on whether you are managing the program yourself or have opted for the network to manage your program, whereby they will likely have presented a Service Level Agreement (SLA) and agreed with you the strategy to be implemented and roll out the 90-day plan on your behalf.
To understand the role of Affiliate Marketing in the marketing mix, it is important to understand where the channel fits in the wider digital landscape. Affiliate Marketing can be considered as a microcosm of the digital universe. The digital universe comprises of different channels like Content, PPC, SEO, Display, Social, Email, Affiliate Marketing and so on. However, Affiliate Marketing by itself consists of publishers who run activity across all these channels. Publishers usually earn a commission when they are the last touch point in a customer’s purchase journey. Best affiliate programs are, Amazon Associates, eBay Partner Network, Jet Affiliates, Walmart Affiliate Link, Click bank and so on.
Value of Affiliate Marketing in the overall marketing mix
- Presence across touch points
- Data insights
- Fuels innovation
- Return on investment
Affiliate Networks aggregate affiliates and merchants into one place. They also handle tracking and the payment of commissions. Affiliate Link , which is also known as a text link or tracking link. This directs users from an affiliate site to an Advertiser site. Advertiser is the standard term for a company who has an Affiliate Program. It also known as ‘merchant’ and ‘brand’.
Following three things are associated with affiliate marketing:
Cost Per Acquisition – the commission paid to a Publisher, typically for driving a sale on an Advertiser’s site.
Cost Per Click – the commission paid to a Publisher for driving a click to an Advertiser’s site.
Cost per lead– The commission paid to a Publisher in return for driving a lead to an Advertiser’s site. E.g. completing an enquiry form
AFFILIATE MARKETING- TOP 10 TIPS FOR BEGINNERS
Affiliate Marketing 2018 trends symbolizes relationship building among this community. If your friends tell you about some great product they tried, you will listen because there is trust in your relationships. So before trying to sell something on your site, make sure you have built a good relationship with your users or followers so that they trust you too.
Get the Traffic In
Traffic is what will get you paid through affiliate marketing at the end of the day. The more traffic your site has, the more potential people there are to promote services and products to.
Choose to promote products that solve a problem
Our readers will be more receptive to spending money on a product because it solves a problem for them like white teeth, or detox drinks.
Pick your promotions
Don’t go affiliating with any item out there! Choose what to promote based on real findings that the product is a good one. Doing otherwise will just get your readers to lose trust in you! While you are making an effort to be transparent, be honest as well! If there’s something you don’t like, don’t be afraid to say it. This will make your readers trust you more and it will feel less like a paid promotion than a friendly piece of advice.
For trouble finding affiliate programs, join QualityUnit affiliate program and receive 30-50% commissions.
Know your audience
If your traffic comes from teenage girls, don’t go promoting anti-ageing face cream! Be realistic when choosing affiliations and keep in mind that you will make more money off the program if you are promoting something that your readers will actually buy.
Rather than just market a product or a service and hope your readers will click on them, be prepared to help your readers with their choices while they buy. They may ask you questions about what you are promoting and you should be present to answer them. This builds trust as well.
Timing is key
Don’t just think of what your readers will buy, also think of when they will buy it! Don’t go approaching them on Christmas Day, for instance, when they are too busy to care. However, you could approach them before that and possibly have them buy some of your products as Christmas gifts. Timing is a point to take note of when promoting.
Content, content, and content
The content on your website can never be overestimated. It is your content that drives traffic to your site and so you should work very hard on making sure you provide excellent content. Work on your copywriting skills and learn to end your posts with a call to action. Let your content speak from your heart rather than seem like a paid advert from some affiliate program.
Diversify your promotion platforms
Not all of your affiliate marketing needs to be done on your website, you can use some of your social media accounts as well. You can use Facebook, Twitter, or even Instagram to promote your chosen products. If you have a good following of members, and you’ve created a mailing database, send out a newsletter as well whenever you feel like it.
Patience is a virtue
Don’t give up if you haven’t made a fortune overnight. Remember, affiliate programs take time to start showing you the money. Some programs even offer lifetime payments like when you refer someone and keep making money from them.