2. AFFILIATE MARKETING
• Affiliate Marketing occurs where a third-
party(Affiliate) advertises products or services of
on behalf of a Merchant for an agreed
commission for a sale or lead.
• Merchant rewards affiliates for each actions..
• Cost per Action
• Cost per Lead
• Cost per Sale
• Cost per Click
5. Types of affiliates Personal websites
Content and niche sights
e.g. Wire cutter, CEO
Coupon and Promotional
6. AFFILIATE NETWORK
• Between Merchant and Affiliate there is
generally a important third party in the
affiliate marketing mix- the affiliate network.
7. AFFILIATE NETWORK
• Affiliate network to provide most of the
technical solutions required for an affiliate
Terms of the affiliate program
Provide tracking solution
Host creative banners
Give commission payment options
Support both affiliates and merchants
8. One example of terms of affiliate
•Hotels.com is offering 5.5% commission on sale, $ 84.74 per 100 clicks.
• The affiliate needs to estimate whether campaigning for Hotels.com is
profitable or not.
10. Affiliate triple ‘A’ Strategy
• Focused on finding and retaining
high number of quality affiliates.
• Offers and deals to encourage
affiliates to get on board.
• Encouraging sales and getting
11. Challenges of Affiliate Marketing
• Seldom contracts are there between
Merchant and Affiliate.
i.e. Affiliate can stop promoting the
programme without any notice
• Little to no industry regulation
• Fear of loss of brand control
• Not easily scalable (a lot of admin and
12. Advantages of Affiliate Markets
• Pay for performance only
• Sales force becomes bigger
• Very low barrier to entry for both Affiliates