Introduction To Affiliate Marketing Or Performance Marketing

Affiliate marketing is a performance based promotional activity to gain maximum exposure or leads

. It is a marketing type which rewards affiliates or publisher for driving visitor or customer to the merchants website. The five main players associated to each other for performing a pre-defined and confirmed action are the merchant or advertiser, the network, the publisher or affiliate, marketing agency and the customer.

In a typical scenario the publisher promotes a merchants offer on its affiliate website in the form of banner, static link, discount code or product feed. A potential customer clicks on an affiliate website and then the affiliate redirects the customer on to the retailer website to make the purchase and the affiliate receives a commission for the conducted sale.

Affiliates:

Affiliates or publishers are individuals, companies or group of people with an affiliate website. They drive traffic to their website and then send customers to the merchants website.

Merchants:

The merchant or advertiser with an online store is the entity who is actually selling the product or service.

Network:

An affiliate network is basically a technology provider, which works as a central communication hub between the publisher and the merchant. A network provides tracking, invoicing, affiliate recruitment, reporting and technical services.

Agency:

The affiliate marketing agency affiliate marketing agency offers support to the merchants in setting up the affiliate campaign, finding top affiliates, recruiting affiliates, detailed reporting and managing the program on daily basis.

Affiliate websites:

Some of the popular types of Affiliate websites are Price Comparison websites, loyalty websites such as cashback and reward, Discount Coupon & rebate websites, Content & Review websites, Group Deal websites and CRM websites that offer charitable donations.

Affiliate payment models:

There are a number of payment models in affiliate marketing which are used to define the payments between merchants, publishers, and advertisers or search engines. Most popular are,

CPA or Cost Per Action

CPL or Cost Per Lead

CPC or Cost Per Click

CPM or Cost Per Thousand

Pros and cons of affiliate marketing:

Merchants prefer affiliate marketing because of its performance based results.

Merchants have complete control of recruitments and management with maximum exposure at very low cost.

Affiliate marketing needs on-going management and optimization.

Sometimes you have to pay networks high commissions rates ranging from 20% to 30% of sale.

by: Babar

POST COMMENT

Video Marketing With Regard To Prosperous Online Lead Generation Several Tricks For An Online Success Online Video Marketing Advantages Of Regional Email Marketing Imarketing - Not An Apple Product Can Telemarketing Open Opportunities For Software Firms? Six Necessary Points You Should Look For In An Affiliate Marketing Program Getting Started With Email Marketing: Tips For Success Network Marketing **secrets** To The Formula Of Dominion 2.0 Funded Proposal Marketing Defined (edition I) Funded Proposal Marketing Network Marketing Victory: Live Your Dreams! A Sensible Guidebook To Producing A Success Mobile Mail Marketing Campaign Benefits Of Text Message Marketing