Affiliate marketing, how does it work?
and how it helps you to create more traffic
What is affiliate marketing and how does it work?
One of the questions a new business owner might ask himself is: how do I gain a part of the market share. Well first of all you have to be known to the audience. Have a website on which you sell products is not enough, people need to be activated to visit your website and make a purchase. There are a lot of ways to share your products with a potential audience, the question is which fits best and when.
Affiliate marketing is a great tool to target specific segments of the audience, the great thing about affiliate marketing is that it enables the advertiser to target people with particular education or interests and this makes it easier to send different messages to the right people. Affiliate marketing consists out of two parties: One is the advertiser and the second is the affiliate or in other words a site that promotes and advertiser offering in the digital space and is paid on a performance basis.
In short affiliate marketing is advertising your products via different channels with the obvious goal of attracting more customers or leads. Usually this happens via a click trough: A link that redirects the user from the affiliate to the advertisers website.
There are a lot of different affiliate categories, such as Voucher sites, reward/loyalty, social media and paid search. so it is important for a business owner and/or marketing department to know on which channels a company should advertise and when. Furthermore, as an affiliate or an advertiser you should always be looking for a partner that is suitable to your brand and even more important be transparent, being transparent enables you to maintain a long term (successful) relationship. Miscommunication or having a secret agenda can be reason for one of the two parties to pull the plug. If a partnership turn out to be successful it may even be so that an affiliate allows the advertiser certain benefits such as a bigger ad space or the use of banners for example.
When it comes to affiliate marketing there are two payment models that are frequently used, Cost per action (CPA) and cost per lead (CPL). Cost per action means that an affiliate is rewarded when a site visitor makes a purchase on the advertisers website after being redirected by the affiliate. Cost per lead means that an affiliate is rewarded when the redirected site visitor shares enough information with the advertiser. An example of CPL could be a site visitor that requests a furniture catalogue from IKEA. It is of the utmost importance that an advertiser pays the affiliate on time and by doing so maintain a good relationship between the two parties.
What an advertiser should and shouldn’t do!
As an advertiser always try to help the site visitor. Always try to inform the visitor about why he or she should buy something instead of creating an ad creative which screams BUY ME CLICK HERE. The reader should be convinced about why they need the product.
It is also very important to chose you affiliates wisely, chose affiliates that suit to your brand so that you are one the same page about important things, and as I said before already be TRANSPARANT, inform the affiliate(s) on time about your objectives or if you want to pull the plug. By doing so you show respect towards the affiliate, give the affiliate time to anticipate on it and it prevents the company from getting a bad reputation.
Besides maintaining a good relationship with your affiliate it is also very important to keep track of your sales. If you do so you will be able to see where the sale came from. It is of course cool to earn money but cool doesn’t get you anywhere a good advertiser analyzes the results and uses them for future targeting.
The last piece of advice I want to give you is to always give a reason for rejection. If you for some reason (returned products for example) do not pay the affiliate always communicate why. By doing so you portray honesty and professionalism, but more important you show the affiliates respect, you might need each other again in the future.