Affiliate marketing in simple terms – is the money-making source for bloggers and marketers. Let me explain in a technical way – “It is a marketing arrangement between an external website and an online retailer where the retailer will pay some commission for advertising their products/services or traffic to his/her website”. Affiliates will market retailer’s products/services on their app, blog, or websites. Commissions are charged on leads that convert to sales.
Basic Elements of Affiliate Marketing:
1. Advertiser: This is the company or brand that wants to sell its product or service.
2. Affiliate or Publisher: The website, blog, or app that drives traffic to the advertiser’s website.
3. The affiliate network: The software that tracks leads, traffic, and sales. 4. Consumer: A person who clicks a link or banner, visits, and buys the product from the affiliate’s website.
How Does an Affiliate Program Work?
Step 1: Creating the product: After identifying and validating your product, create your product/service.
Step 2: Affiliate program partners like Digital Product Delivery or Gumroad, any person can easily set up affiliate program partners, and allow them to collect commission.
Setup: An advertiser has a product/service to sell and there are so many websites (affiliates) willing to help or send traffic your way, you need to quantify the sales from this program and pay them a commission for their efforts.
By adding tracking parameters to the URL links on the affiliate’s website, tracking the performance of the program is done. These parameters are automatically created by the affiliate network.
How to Optimize/Improve an Affiliate Program?
Sometimes for a short period of time, advertisers can encourage affiliates by offering higher percentage commissions to drive more traffic. This can be quite helpful during sale periods. Through this affiliate will place advertiser’s links in prime/premium locations on their website and promote it harder to earn more commission using their own channels. This should encourage more sales for the advertiser.
Construct an email list of prospects where advertisers can create significant sales. We have to make sure to keep your audience engaged by sending them regular updates once a week.