What is Affiliate Marketing?
Affiliate marketing in short is a way for a website or email lists owner 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 reffered to as the advertiser or campaign.
- 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 promote. The network has already established relationships, tracking and usually preferential commisison rates with the merchant, so the affiliate does not have to do any of this themeselves.
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.
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 fraudlent 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 Aquisation - 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 delviered 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