Affiliate Marketing

An affiliate marketing network helps advertisers and publishers to grow.

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What is affiliate marketing?

Today’s business and online worlds are constantly changing. More and more entrepreneurs and bloggers choose the affiliate marketing business model because it promises a lot of potential advantages to both parties involved.
Affiliate marketing is basically a performance-based type of marketing in which a business rewards its affiliates for new visitors or customers brought by the affiliate’s own marketing efforts. It all works using affiliate links. These links include a partner ID which identifies the affiliate.

Affiliates earn a commission for each item that was sold after their recommendation to the customers. In other words, affiliates can profit out of product sales without creating products of their own. The affiliate links lead potential customers to the retailer’s website and the visit is also tracked by cookies.

The idea of affiliate marketing exists before the invention of the internet actually. The world wide web made it possible to build up this marketing type even more.

The most popular affiliate marketing program is on Amazon. Commission rates depend on which type of product you promote. For example electronic devices you will get 2.5%, while fashion and jewellery can get up to 10% of every sale. If the customer adds a product to their cart Amazon gives you a 90-day cookie which means that if the item hasn’t been sold after the first 24 hours, you will still get a commission if it gets sold within the next 89 days.

The four different parties of Affiliate Marketing

1. Affiliates

Also called “Publishers. This party promotes the product on a website, blog, social media or Youtube channel to receive a commission after every sold item. Affiliates basically connect the consumer with the seller.

2. Network

Affiliate networks are like a marketplace. It connects affiliates with sellers. If a seller wants to promote a product, they can place their products on the network and find affiliates for it. Likewise, if an affiliate looks for another product to promote then they find hundreds of different offers on the network.

3. Merchants

This is basically the seller. The business that produces and sells the products in question. Affiliate marketing is a tactic used by businesses of all sizes. While big companies have a marketing team, with affiliate marketing they can promote their products at low cost, since they have to pay the affiliate only after a product has been sold. Small companies, on the other hand, don’t have a marketing department and rely 100% on affiliates.

4. Consumers

The consumers purchase the promoted products from the affiliates. Without consumers there is no revenue to be shared between merchants and affiliates. Wether the consumer knows that the link they click on is an affiliate link or not is up to the affiliate. Social media influencers for example, often encourage their followers to click on linked products to support them indirectly with their purchase. 

Different categories of Affiliate Marketing

Affiliates can earn commissions in different ways. That’s why it makes sense to come up with a plan if you decide to start affiliate marketing. Here is a list of the different categories:

-Pay per click
-Pay per lead
-Pay per sale
-Pay per Click Out
-Pay per link
-Pay by registration
-Pay by installation

Most online businesses use Pay per sale and Pay per lead. The it comes to Pay per click and Pay per click out, the affiliate earns a commission just because the customer clicked on the link, but didn’t purchase anything. Which means that these two marketing methods aren’t ideal if you’re an online merchant because your sales don’t increase but you still have to pay your affiliates.

Another interesting option is the Pay per view method. here you get charged when a banner shows up on screen. You can set a budget beforehand to determine the number of banners you want to display. The Pay per sale method is ideal for online merchants, since you pay a commission only after you sold the product that was advertised.

In the Pay per lead method, on the other hand, the advertiser gets paid for bringing leads to the partner-company. Generally, the leads (or visitors) have to sign up on the partner-company website.

affiliate marketing netzwerk

Affiliate Marketing as a business model

As a business model is affiliate marketing very popular among bloggers, social media influencers and in the e-commerce scene. Around one/sixth of e-Commerce revenue every year is generated through affiliate marketing. Therefore affiliate websites practically function like an advertising channel for businesses. If you’re someone who wants to build an affiliate marketing project we recommend reading the tips in the next chapter of our blog.

If you start your own blog and sign on an affiliate network you can add to your blog’s pages affiliate links related to your niche. Your content must be structured in such a way that your visitors will be convinced in the end to make a purchase. It is crucial to point out the affiliate links to your readers.

How to become successful in Affiliate marketing?

Because of its low risk can affiliate marketing offer a potentially successfully online business. However, you have to come up with a strategy to increase your chances of success. Your main focus should be to attract a lot of visitors to your website. Your social media channels can assist you to increase your website’s range. Selecting the right partner program is also an important factor. In any case you have to be careful on your own expenses as you build up your affiliate marketing project. The recommended methods are Pay per sale and Pay per lead. A combination of the two methods would be very promising for your success. That’s why many affiliate programs offer a combination of the two methods as well.

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Contact us if you have any question

Our affiliate marketing experts can help you succeed in your own project. We can help you
find your target group and make up a strategy depending on your niche. Does it sound interesting? Don’t hesitate to message us!