What is Affiliate Marketing?
Affiliate Marketing is a technique in which an online
merchant website pays affiliate websites a commission to send the buyer,
traffic. In simple terms affiliates don’t deal with inventory, customer
service, follow up or anything like that. they simply sell. The affiliate
website shares their links to the merchant site and is paid according to the
mutual agreement between them. This agreement can be based on the number of
people visited, some particular action taken or someone buy’s something etc. Therefore,
hiring affiliates is a brilliant way to sell products online and also it cheap
and effective internet marketing strategy.
Merchant could try to go and find each individual
website he wants to promote, try to setup a deal with them and then become
their affiliate but that would take a lot of time. So, here comes the affiliate
marketing.
There are at least three parties in
affiliate marketing:
1. The
customer (who will buy)
2. The
affiliate site (where the merchant website link would be)
3. The
merchant site (where the action would be taken)
Brief overview how it works:
Affiliate Program Payment
- 1. Pay per sale - Here the merchant pays an affiliate when the affiliate sends a user (customer) who purchases something.
- 2. Pay per click – Here the merchant pays an affiliate based on the number of clicks coming to the merchant’s website. It doesn’t matter what that user performs on the website.
- 3. Pay per lead – Here the merchant has to pay according to some planned action. Action can be information gathering, sign up form, feedback etc.
There can be number of arrangements which can be done
according to the agreement between merchant and the affiliate.
Acquiring Affiliates
Affiliate network will help setting up an affiliate
program and work to recruit affiliates. As an affiliate you have to fill out an
application describing the nature of your business and website details.
Thereafter affiliate has to agree to the terms of the affiliate network and
make a deposit. This deposit include a onetime charge for a becoming a member, some
affiliate networks also charge a yearly fee for their services and some are
having their own rules and agreements.
The alternative of this is maintaining an affiliate
program yourself. It is highly complicated as here we have to recruit
affiliates, maintaining the program, purchasing some tracking technology and
maintaining it, further we have to instruct the affiliates and monitoring
them.
Affiliate Linking Methods
An affiliate can link to the merchant in much number of ways.
Few of them are mentioned below:
Text
links: Just giving the text link in between the content. The
advantage of text links in an affiliate program is they are hyperlinked in the
content of website and so don't look so much like advertisements. For a lot of
affiliate sites, this is the most natural way to link to the merchant site.
Banner
links: Here the links are created on images or we can say
some sort of graphic element. They may be the best choice when affiliate thinks
a text link doesn't do enough to attract visitors.
Search
box:
This type of link allows visitors to search an online database on another site.
The results of the search are links to other pages on the site.
There are several ways affiliate programs use these
links:
Link
to the home page: This is a straight-forward link to the
merchant's home page. If an affiliate wants to introduce visitors to the
merchant site in general, this is the best way to link.
Product-specific
link:
Here the product specific page is directly link. This makes things easier for
the customer and simplifies the affiliate program process.
Registration:
An affiliate can link directly to a registration form on the merchant site. If
a visitor would have to register to use the merchant's Web site, this link is a
good time-saver or merchant need’s some information.
There are n numbers of ways how the merchant link can be
placed. Further placing the link depends upon the nature of the merchant and
each link must suit’s the purpose.
Affiliate Program Networks
Affiliate networks act as mediators between affiliates
and merchant Websites with affiliate programs. They track all activity, arrange
all payment, and help affiliates set up the necessary links on their Web site.
Additionally, affiliate networks help recruit affiliates by including an online
merchant's affiliate program in their directory. Different affiliate networks
offer different extra features, but most have a help-center and a place
affiliates and merchants can go to view reports of their traffic.
Affiliate networks are a real convenience for
prospective affiliates because they present a wide variety of affiliate
programs in one central location. They make it much easier to find a good
program that is appropriate for your site.
Affiliate networks charge fees for the above services.
Affiliate Program Technology
The URL for the page contains several pieces of
information from where we can track, including:
- 1 an identification number for the affiliate
- 2 an identification number for the merchant
- 3 the URL of the merchant site
When you click on the link, the network site records a
hit on that particular URL, which tells them what affiliate sent a visitor to
that merchant. It then immediately sends the visitor to the actual merchant
site. But if you move your pointer over
a merchant link on an affiliate site you will notice that the first part of the
URL your browser displays is for the network site and not for the merchant.
The network tracks sales using Internet cookies
containing these same identification numbers, so they know what affiliate
referred the customer to the merchant
.
For
ex
Merchant Name:
sulekha.com
Affiliate Name: freekamaal.com
There is a deal of hub port which is listed on
freekamaal.com (affiliate website) and a when a user clicks on it; user will
redirected to merchant website (sulekha.com)
http://freekaamaal.com/2012/09/lowest-online-enter-hub-4-port-usb-2-0-e-4u2-worth-rs-450-at-rs-160/
http://deals.sulekha.com/enter-hub-4-port-usb-2-0-e-4u2-26240?affid=134054 (affiliate id)
Successful Affiliate Programs
Affiliate programs work best when affiliates choose
products, services and companies that match the content/theme of their Website
and would interest their readers. If a content Website chooses affiliate
programs well, everybody involved in the process wins.
Here the winning process can be
- · affiliate helps in selling the product to its visitor (increases the reliability),
- · the merchant win as he gets the sale or the desired action,
- · Customer wins as he gets product easily.
Therefore to be in a winning process choose a program
which suites the theme/content of your website, it should be easy to lead your
user participate in them. If the merchant is having a business of clothing the
link should be on fashion or clothing website.
Points to Ponder:
- · Know the Products You Are Marketing
·
Rank for the Right Keywords
(Be
reminded that conversion rates in Affiliate Marketing are very low. You might
get a high click-through if you have written an awesome review about the
product, but out of 500 clicks, only one or two will convert into sales. So it
is a numbers game. The higher the numbers, the better are your chances.)
Amazon
https://affiliate-program.amazon.com
Ebay
https://www.ebaypartnernetwork.com/files/hub/en-US/index.html
Ad
Exchange Program:
Ad exchanges are technology
platforms for buying and selling online ad impressions, and represent a field
beyond ad networks as defined by the Interactive Advertising Bureau (IAB), and
by advertising trade publications Advertising Age, iMediaConnection and ClickZ.
An ad exchange is a marketplace that allows advertisers to bid on access to
targeted ad inventory.
The exchanges
Currently, there are only a handful of “major” ad exchanges:
àAdBrite
àAdECN (Microsoft)
àContextWeb
àDoubleClick Ad Exchange (Google)
àRight Media (Yahoo… currently testing real-time bidding)
àMobclix for Mobiles
These media entities have direct deals with
publishers, networks, or publisher tools to sell inventory on their open
platforms. On its DoubleClick
Ad Exchange, for example, Google has migrated inventory from its very
successful AdSense program, which enables it to sell
advertising this way on literally billions of web pages. Exchanges negotiate
rates with the media providers and get paid to simply handle the transaction.