About Affiliate Marketing

What is Affiliate Marketing? We're here to explain the industry in terms you can understand!

What Is Affiliate Marketing?

Affiliate marketing is a part of online marketing where advertisers are matched with the appropriate online marketers or companies that will specifically work for them. Their job is to promote a product or service to potential users. These users will transform into new clients, increased sales and a new online stream of revenue for the advertiser.

Each affiliate/publisher (the marketer or company that finds the users/leads) is rewarded through commission when he/she sends traffic to advertisers’ ads and the visitor makes a purchase, signs up for a newsletter or completes the desired task the advertiser seeks.

The Advantage

The advantage to using affiliate marketing is the advertiser does not pay the affiliate before a sale or an action has been completed. So this is a great way to gain branding awareness, revenue and clients without having a large marketing budget.

For the publisher, there can be only advantages. You alone decide how much money you will make online. You can put ads in your private blog and hope that friends will bring in a small income, or you can do online marketing for your website and reach a wider audience which will, in turn, lead to even more income.

The Knowledge

This requires knowledge in SEO, banner exposure, email marketing and other online marketing tools. Affiliate marketing has many angles and solutions, so a sound piece of advice is to stay focused on a few methods, learn from the results and repeat until you have reached your goals. You can always expand later.

Affiliate marketing is a long-term business model that will take time to build, but once you get there, you will have a residual income like no other. But be aware, once you have stepped into the circle of affiliate marketing and seen firsthand the money you can make on the Internet, it’s hard to stop. With the proper strategies, there are many streams of income available to those who work diligently.

For the advertiser, affiliate marketing is a cheap and reliable solution, as it’s merely impossible to get a negative ROI if using one of the options below.

Typical Ways To Use Performance Marketing

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CPA (Cost Per Action)

CPA is a term used when you are paid a fixed fee for any sale you make. It’s mostly used when a user needs to buy a product that requires a credit card.

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CPL (Cost Per Lead)

CPL is probably what flourishes the most in the affiliate market. Most affiliates or performance-based networks prefer CPL campaigns, since they are easy to convert. A lead is a term used when specific data is collected: name, address and email from a user that signs up. For example, an insurance provider seeks people interested in saving money. Once the leads are created, those people will be called or emailed by the insurance company and will turn into life long customers.

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CPS (Cost Per Sale)

CPS is mostly used for e-commerce stores. Here, the affiliate will be offered a percentage of each sale brought in.

Other Options

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CPC (Cost Per Click)

CPC is used in many variations. You find campaigns that pay you for each click you bring from your website. It can help to boost your campaigns to make extra income. But this requires a good understanding on which exchange network to use, keywords, social media platforms etc.

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CPM (Cost Per Mille)

The word Mille is Latin for thousand. CPM works on the same basis as CPC. The only difference is you are getting paid per impression instead of per click.

Still Have Questions?

If you are still unsure about anything we’ve covered here, we recommend you view our frequently asked questions or contact us to help get you set up for success.

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