Affiliate Marketing

Knowledge Center



Summary, forum, best practices, expert tips and information sources.


Summary

What is Affiliate Marketing? Description

It is a promotion method that can be used to reward partner companies for introducing new clients. It can be seen as a digital form of franchising or as an electronic joint venture. The Merchant normally delivers advertising banners and web links to their affiliates. Also the Merchant grants a commission. Normally in return for a click-through to their website, subscription to their service, or purchase of their products which is generated via these links. Affiliates place a tracking code for these ads into their web pages. Each time a visitor on the affiliate's website clicks towards the website of the Merchant, that transaction is registered online. Compensation for the Affiliate may be made based on:

  • Pay per click. A certain value for each visit.
  • Pay per lead. A certain value for each registration or for each qualified registration.
  • Pay per sale. A certain value for each customer or sale.

Origin of Affiliate Marketing. History

Affiliate Marketing can be seen as the modern variant of paying finder's fees to individuals or organizations who introduce new prospects or clients to a business. In July 1996, Amazon launched an associates program that became a huge success.


Usage of Affiliate Marketing. Applications

  • Online advertising.
  • The approach is most effective when placed in context with quality content.
  • Some third parties such as LinkShare, Commission Junction and also Google offer affiliate networks and provide services such as tracking, reporting, affiliate recruiting, payments, sending out end-of-year tax forms, and responses to webmaster queries.

Strengths of Affiliate Marketing. Benefits

For the Affiliate:

  • Offer additional products or services to their visitors.
  • The opportunity to earn money from their niche audience by up selling or cross selling. Without the need to invest in logistics, financial fulfillment, or back office administration.

For the Merchant:

  • No payment is due to an Affiliate until certain results are achieved.
  • Typically low-cost and cost-effective.
  • Targeted advertising into appropriate niches.
  • To get a measurable means of advertising their products or services.
  • Extend reach of brand.

Limitations of Affiliate Marketing. Disadvantages

  • Some affiliate marketers have been accused of spamming to promote their programs. Either in the form of email spamming or by creating multiple websites with the purpose of generating artificial traffic from search engines (spamdexing).
  • Websites made up purely or predominantly of Affiliate links are usually regarded negatively as they do not offer any quality content.
  • Note that most people don't purchase during their first visit to a website. A cookie can ensure that a referral is registered. If the referred person makes a purchase on a future visit, the original referrer will still be credited for the sale.

Final Remark

At the top and bottom of this page, you can see a remarkable example. You can find some well-known Affiliate Marketing companies which advertise here themselves via this method.


Special Interest Group

Join

Affiliate Marketing Special Interest Group.



Special Interest Group (527 members)

Forum

New Topic

Forum about Affiliate Marketing.


Web 2.0 and Affiliate Marketing
What does the arrival of Web 2.0 (Interactive web pages) mean for Affiliate Marketing? (...)
12
 
1 comments
🔥 NEW How to Build Network Marketing?
Who has any tips on how to build a network marketing initiative with a lot of people? How to recruit them? (...)
10
 
3 comments
Affiliate Marketing is more suited to products
I think Affiliate Marketing is more suited to products then to services. Because in services, it is more difficult to tr (...)
5
 
3 comments

Start a new forum topic about Affiliate Marketing
Exchanging your ideas stimulates your personal and professional development. And you can help other people! Please motivate your point of view. You can still edit your topic for 3 hours.

 

Best Practices

Sign up

The top-rated topics about Affiliate Marketing. Here you will find the most valuable ideas and practical suggestions.


Expert Tips

Sign up

Advanced insights about Affiliate Marketing. Here you will find professional advices by experts.


10 Affiliate Marketing Tips

Increase affiliate marketing success
1. Provide unique content. Good, unique content is King. 2. Have a holistic website theme. Ensure your logo and graphic (...)

Types of Affiliate websites

Marketing, Strategy
The different types of Affiliate Marketing websites can be categorized as follows: • Comparison shopping sites and dire (...)
Information Sources

Sign up

Various sources of information regarding Affiliate Marketing. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Introduction to E-Marketing | Internet Marketing

E-marketing, Web Marketing, Affiliate program, Search engine optimization, Email campaigns, Mobile marketing
This presentation covers the topic of E-marketing, divided into various subcategories. It consist of the following secti (...)

Research Links

Sign up

Automatically jump to further useful sources regarding Affiliate Marketing.


News Videos Presentations Books More

News

Videos

Presentations

Books

More


Compare: 4S Web Marketing Mix  |  Bricks and Clicks  |  Operational CRM  |  TDC Matrix  |  Twelve Principles of the Network Economy


Return to Management Hub: Marketing


More Management Methods, Models and Theory

Special Interest Group

Are you interested in Affiliate Marketing? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this knowledge center

Copy this HTML code to your web site:

 


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2021 12manage - The Executive Fast Track. V15.8 - Last updated: 13-5-2021. All names ™ of their owners.