Affiliate Marketing Marketing through affiliates is known as affiliate marketing. Someone who promotes other sites or products and earns a commission or flat fee based on results is known as Affiliates. It is also known as revenue sharing advertising between two websites. The affiliate website will display an online advertisement of another website. Internet traffic from the affiliate site will be driven to the other website. The affiliate will paid for displaying the advertisement.
For instance- firm A is promoting websites of firm B in their website so, when any visitor visit firm B web site through firm A websites then traffic directly driven to firm B website. Firm A will get commission or pre decided fixed fee.
Future of Affiliates Marketing:-
Affiliate marketing is among the effective methods for internet users to generate cash. Affiliates dont have to do anything, place advertisers ads on its own websites and wait for revenue generation. Now internet users are rapidly increasing so chance of converting visitor to customer is more. Advertiser have chance to attract more and more customer through effective lead which they get from affiliates and the conversion rate is quite high.
Why should advertiser approach publisher?
The answer is quiet simple, more publicity more customer. Database becomes strong. It will help in making future programming.
For example Facebook is an affiliate of Reebok, and Facebook has enormous traffic so any visitor who visits Reebok websites through Facebook are driven to Reebok websites and if he fills a sign up form and give his contact information in that case database becomes strong and this visitor can turn up to customer in future.
Type of revenue generation model:-
Cost Per Click
Cost Per Lead
Pay Per Sale
Cost Per lead
It is a cost per click method. An advertiser has to pay to affiliates/publisher as per the click counted on banners. Cost per click is often used when advertisers have a set daily budget. When the advertiser’s budget is over, the ad is removed from the rotation for the rest of the period. Only Facebook and Google are getting money through CPC.
Cost Per Lead
It is a cost per lead method. CPL defines how much revenue a publisher receives when he creates a lead for an advertiser. For example, the publisher may place an ad for gaming site on his website. If a user clicks on the advertisement link, he is directed to the advertiser’s website where he can sign up for gaming kind of account. If he chooses to sign up, a lead has been created and the publisher is paid a certain amount based on the CPL.
Pay Per Sale
It is a pay per sale method. Every time a sale is made as a result of advertising on the affiliate’s website, a percentage, or commission, is deposited into the affiliate’s account.
Importance of affiliate marketing:
– Affiliate Marketing is important for both the parties. Advertiser gets exposure, database of effective visitor and sales whereas publisher gets its commission or determined amount.
Another importance of Affiliate Marketing is that it has added to the increase of many online companies, including Amazon.com and eBay. It has become extremely common for industries to participate or offer affiliate marketing deals that are often built in a similar way as the industry offering them, making similar competitive changes when necessary.
Another benefit of affiliate marketing is the income potential associated with many affiliate markets. As long as people are happy to make online purchases, there is money to be made in affiliate marketing. There is no need to limit your affiliate marketing programs to just one type of product or service. Broaden range of products and services to assist in making earning potentials higher.
Another biggest benefit of Affiliate Marketing is you can work from home and the work is negligible, hours will be flexible, and you will basically be your own manager.
Affiliate Marketing can offer unlimited earning potential, facilitate you to work from home, and provide you with stretchy working hours. For these reasons alone, affiliate marketing is fast becoming an extremely popular way to earn a living.