2. What is Affiliate Marketing ?
• Affiliate Marketing is a sales platform with multiple
stakeholders. The sales process is commission-based
and the amount of commission is pre-agreed between
the seller and partner.
• Affiliate Marketing is a performance-based marketing
system that basically involves four distinct elements:
3. The merchant, also known as a seller or retailer, is an individual or
a business that sells a product or provides a services.
The affiliate is (or can be) an individual who promotes products and
services and gets commission on each sale. The affiliate works with
the merchant to promote the merchant’s products and services.
The consumer, can be all of us. In affiliate marketing, the consumer
is a person who uses goods or services to satisfy his or her needs.
The network, also called program or platform, acts as an
intermediary between the merchant and the affiliate. The network
is completely digital and requires varying levels of involvement
from both the merchant and affiliate.
4. Types of Affiliates Sites
Shopping – sites are virtual malls. The consumer shops for various brands and
products on site. These are not driven by particular coupon or deal offer.
Coupon/Deal – Most popular affiliate model. These sites are shopping sites that
require merchant to provide with either a coupon, percent of saving or free
Comparison Shopping – Sites sell items using a comparison model. These sites
usually require a data feed of merchants products.
Loyalty/Rewards – Sites where a percent of the merchants commission is used to
pay reward to consumer. Allows consumer to select their reward option. Rewards
can include cash, airline miles, credit card points or donation to charity or
Content – Sites are usually not shopping sites. Consumer go to the sites because
the content is of particular interest. Sites to particular product contained in the
Search – Affiliates promote merchants via search engine marketing, using either
organic or paid search practices.
Blogs/Forums – Sites post or feature article that focus on a particular product or
merchant and include a product affiliate link to the product.
5. Key Factors For A Successful Affiliate Program
Choose the Right Product
You should develop the ability of choosing the right product or service for
your audience because this determines the success or failure of your
affiliate marketing venture. in promoting the products.
Revenue Share or Commission
Your commission basically depends on the volume of sales. However, high
volume of sales might not necessarily result in maximum commission.
Most of the successful affiliate programs offer initial commission on each
signup and recurring commission on monthly and yearly basis.
Be Honest to Your Audience
Sometimes novice bloggers make mistake of exaggerating the details of
the product or provide incorrect information to make a quick sale. You
should keep one thing in mind; you cannot fool your visitors all the time.
Keep it simple and honest!
Make Your Content Sticky
You should educate your viewer but remember to keep it entertaining.
Remember that engaging content results in better sales. This is very
important in the context of affiliate marketing.