2. Affiliate Marketing is a type of
performance-based marketing in
which a business rewards one or
more affiliates for each visitor or
customer brought by the affiliate's
own marketing efforts.
3. The concept of affiliate marketing put into practice and
patented by William J. Tobin, the founder of PC Flowers &
Gifts.
PC Flowers & Gifts generated sales in excess of $6 million
per year on the Prodigy service
In 1994, Tobin launched a beta version of PC Flowers &
Gifts on the Internet in cooperation with IBM, who owned half
of Prodigy
By 1995 PC Flowers & Gifts had launched a commercial
version of the website and had 2,600 affiliate marketing
partners on the World Wide Web.
Cybererotica was among the early innovators in affiliate
marketing with a cost per click program.
Amazon launched its associate program in July 1996. In
February 2000, Amazon announced that it had been granted
History
4. There are 4 different parties that are
essential to make a successful program
succeed:
1.Merchant or advertiser
2.Network
3.Publisher
4.Customer
6. 1. CPC, Cost Per Click: This cost is determined by the
number of web visitors who click on a link on the affiliate
page to arrive at the merchant’s website
2. CPL, Cost Per Lead: This is determined by the number of
web visitors who sign up for your newsletter, or otherwise
contribute their personal information to your site
3. CPS, Cost Per Sale: This kind of payment is determined
by the number of sales made as a result of affiliate activity
4. CPA, Cost Per Action: This is determined by the number
of actions completed by a visitor
Payment
Methods
8. 1.Coupons – these set of publishers promote
coupons from different online retailers.
For example, www.cuponation.in,
www.desidime.com etc.
2.Deals Sites – some sites promote the latest
and greatest product deals.
For example, www.savemoneyindia.com,
www.freekaamaal.com
9. 3.Price comparison sites – compare products by
price, typically in a table.
For example, www.pricedekho.com,
www.compareraja.com
4.Loyalty &Reward sites – a reward in the form of
cash or points for purchasing via their website.
For example, www.cashkaro.com,
www.cashitback.com
5.Bloggers – bloggers write about products, upload
videos, and reach out to their audience about how
great the products are.
Contd..
11. Strategies for a good affiliate
marketing:
•Pick the Right Products
•Promote Great Products
•Select Products that Convert
•Offer “Trial” Affiliate Products
•Look for High-Percentage Payouts
•Find New Products to Promote
•Promote Multiple Products
•Become a Mini-Expert on Each Product
•Find out what people want
12. Importance Of An Affiliate Program
• Broader market to advertise
•More exposure and Recognition
•Create additional income
•Brand loyalty and recognition
•Low customer acquisition cost (paying only for
performance)