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Affiliate marketing in short is a way for a website or email list owners to make money by promoting an advertiser's product or service. The website or email owner is referred to as the affiliate.

A practical example of an affiliate

You have a wesbite that is about loan products. You decide to promote XYZ Ltd Loans and you know for each lead generated you will earn £10.00 commission. You promote them by putting a text link and a banner creative on your site. The consumer visits your loan site. They then click on the XYZ link that you have displayed. The link transfers the consumer to the XYZ landing page. The consumer likes what they see and they want to find out more. They fill in the form and submit their details. XYZ Loans recognise that this lead has come from you and will pay you £10.00 commission.

The affiliate marketing chain

There are normally three key stakeholders in the affiliate marketing chain. They are:

  • The Affiliate - if you have a website or email list data and you promote third party products/services then you will be referred to as a Affiliate, Publisher or Partner.
  • The Merchant - this is the company that wants to sell something. The merchant can also be referred to as the advertiser or client.
  • The Network - this is the middle man or broker. Networks will essentially manage the whole affiliate marketing process.

How to get started?

The easiest way is to get started is to sign up with a network like The Affiliate People. As an affiliate it is usually FREE to sign up to a network and by doing so you will then have access to a variety of affiliate programs that the network promotes. The network will have established merchant relationships, tracking software and usually preferential commission rates in place so the affiliate does not have to set any of this up themselves. The network will provide the affiliate with all the tracking links they need and also pay the affiliate commissions at the end of the month. Commissions will vary depending on the affiliate program.

Payment Models

Commonly the affiliate will earn commission based on the following models:

  • Cost Per Click -the affiliate will be paid for each unique click made. This method of payment is less frequent these days, mainly as this type of payment method is open to abuse from fraudulent or non-performing clicks
  • Cost Per Lead - the affiliate will be paid for every lead generated. This usually involves the consumer filling in a contact form and submitting their details.
  • Cost Per Valid Lead - the affiliate will be paid for every valid lead generated. This means the affiliate will not be paid for invalid contact details, duplicates, consumer not interested etc.
  • Cost Per Acquisition - the affiliate will be paid for each sale made

The value of affiliate marketing

It is important to remember that affiliate marketing is a very cost effective way for merchants to promote their product or service online. Not only do merchants usually only pay on a lead/sale basis, but they also have the increased added value benefit of increasing brand awareness. Therefore they are getting brand exposure and leads delivered to their website.

It's really simple to join a network. Most networks have online sign up and approval usually takes less than 48 hours. Join The Affiliate People

If you want more information on affiliate marketing then please feel free to contact us

There is no charge to join our network