2. Affiliate marketing is a marketing practice in which
a business (‘Advertiser’) rewards one or more
affiliates (‘Publishers’) for each visitor or customer
brought by the affiliate’s own marketing efforts.
2

3. There are 4 different parties that are essential to make an
affiliate program succeed:
1.Merchant or advertiser
2.Affiliate Network (e.g. Tyroo, OMG, VCommission etc.)
3.Publisher
4.Customer or the Shopper
3

4.  Performance driven: Pay only if affiliate drives a Sale. No fixed cost
 Higher ROI compared to other channels
 Often cheaper than PPC on Google
 Affiliate marketing kicks in faster than SEO
 Affiliates do extensive marketing & provide great brand exposure
 Proven concept globally since 20+ years. Pioneered by Amazon
since July 1996
4

5. 1. PRICE COMPARISON SITES
 These sites provide convenience of price comparison. They get paid
commission from sites they direct traffic to
5
Acquired by Experian for
$485million
Bought over by ValueClick UK’s #1 Financial Services
Comparison website
Launched in India
by Amazon

6. 2. COUPON / VOUCHER SITES
 Feature Coupons to help shoppers save money
 Keep all the commission they get paid from
brands they send sales to
 Coupons.com in the US filed for $100m IPO
6
Valued at $1 bn.
IPO’ed at $100 mn
Acquired by RetailMeNot
for $40mn
Indian Coupon Code Website

7. 3. CASHBACK SITES
 Give members EXTRA CASHBACK on top of Coupons
 Share commission with members as ‘Cashback’
 RetailMeNot in the US IPO’ed at $1.4billion, raised $190 million
7
Valued at $1.4bn,
IPO’ed
Biggest UK Cashback websites
India’s No. 1 Cashback & Coupon Website

8. 4. LOYALTY PROGRAMS
 Large brands, airlines set up loyalty
programs where you earn points
when you shop at any of their
listed partners via them
 Shoppers collect points and can redeem them for rewards
8

9. 4. BLOGGERS’ SITES & CONTENT MARKETING
 Placing links on blogs related to their niche
 Banners in Sidebar
 Text links in blog post
 Recommend products, show videos, podcasts to show products
which link directly to ecommerce sites
which pay the blogger
 Review sites often act as affiliates too
9

10. 5. PPC affiliate marketing (unattached affiliate marketing)
Behind the scenes middle man. Show your affiliate links where possible
& earn when people click & shop via your link. Includes Search
Publishers
6. Email marketing list affiliates
7. Social media affiliates
8. Content & niche market websites, including product review
sites
10

11.  Having a programme and commission structure in place to attract
affiliates
 Getting enough affiliates to join your programme
 Ability to track which affiliate generated a successful sale or lead
 Easy to manage the programme and pay the affiliates
 Ability to reject sales or leads if they are fraudulent or payment is not
received
11

12. a) Use an Affiliate Network
 Create your own programme on the network
 Use network’s tracking software
 Let the network promote and recruit your affiliates
 Networks manage payments to affiliates
Costs: Fee to join network & commission on Sales
b) Run your own affiliate programme
 Set-up your own programme
 Invest in third party tracking software
 Market and recruit your own affiliates
 Manage your programme yourself (or recruit an agency)
Costs: Dedicated team to run programme, tracking software
investment, best for larger companies
12

13. 13

14.  Advertisers spent £1bn on affiliates, got back £14bn sales.
Constitutes 16% of UK ecommerce market
 15% year on year uplift
 Diverse channel encompassing price comparison, editorial, cashback,
voucher codes and loyalty
 Spend, revenue, number of affiliates and advertisers all seeing an
uplift on last year’s numbers
14

15. Brands with own affiliate program:
Brands working via affiliate network:
15

16. 16
“Affiliate marketing is an important channel of digital marketing for
Myntra.com. A considerable percentage of the business is driven by affiliate
channels that are completely measurable unlike many other marketing
channels”
- Ashutosh Lawaniya, Myntra.com
“As sites with better content and value offerings to consumers emerge,
the contribution of this channel should see significant growth.”
-Binny Bansal, Flipkart.com