Revenue sharing between online advertisers/merchants and online publishers/salespeople, whereby compensation is based on performance measures, typically in the form of sales, clicks, registrations, or a hybrid model. Success in affiliate marketing for the merchant is all about building the right relationships with the right types of affiliate. Being in the industry from quite a longer period of time we have achieved a number of affiliates with a healthy working relationship with them which help us growing the business.
Affiliate marketing is basically a process where a brand or supplier, for example a book retailer, attract customers by rewarding the third-party (or affiliate) for marketing their goods and services, and driving traffic to their website.
The affiliate relationship is based upon the conversion; the conversion is the action on the part of the consumer which forms the central reason for the affiliate relationship. The conversion or the action can take a number of forms; so for Amazon this might be the sale of the product; for others it might be the placing of an online bet, or booking a holiday.
In a nutshell affiliate marketing as the basic process.
The first step is where the user visits the affiliates blog or social media site (website, twitter, and so on), individuals arrive at a purpose-built landing page, receives an e-mail, use their twitter page, use a PPC advertisement, sees a viral advertisement and so on. The user then clicks on the link and is redirected to the merchant’s landing page or product.
Often it is difficult to tell that you have left the affiliates website at all; for example Amazon.com allows you to cut and paste examples of books from their website to be placed on your own.
There are a number of ways of doing this. Using cookies the merchant and the affiliate workout how many people have clicked through. Finally the consumer or user books a holiday or buys a book; the code embedded on the affiliate website indicates to the merchant where the sales come from and to whom commission is owed.
Some affiliate have quite complex affiliate management software which is accessible by the merchant and the affiliate; for example an affiliate can work out how much money he is making, and can optimise various pages through digital marketing to improve conversion rates.