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What is affiliate marketing?

Internet marketing offers great opportunities that increase the chance of achieving your business goals. It includes a wide variety of tools, including affiliate marketing. Check what it is and whether it is worth investing in it.

What is affiliate marketing?

Affiliate marketing is the efficiency channel, which is based on the cooperation of the advertiser (seller) with a partner (affiliate) who assumes the role of an intermediary in the transaction. Such a division brings mutual benefits:

– the seller enjoys a greater range of his products and more sales,
– the partner receives remuneration – it is calculated adequately to the actions.

This specificity means that affiliate marketing is not a direct marketing technique. It looks more like the employment model of independent marketers, who – motivated by a commission remuneration system – take actions to attract potential customers and get them to perform a specific action.

From marketer to user

The affiliate marketing model consists of four key elements:

– a partner who also acts as a marketer,
– advertiser (seller),
– user,
– affiliate network settling transactions.

The operating principle of this type of business model boils down to the following steps:

– the seller delivers a specific creation,
– the affiliate network provides such creation, e.g. in the form of a banner,
– the partner places a banner on his website,
– the user clicks on the banner,
– thus visiting the seller’s website.

How does it look in practice?

Suppose an entrepreneur wants to sell a guide book. To increase sales reach, he cooperates with, for example, the owner of a website whose subject matter corresponds to the subject of the book. There he puts a banner advertising the book. Each click on the banner is noted by the affiliate network. If the user decides to buy, the entrepreneur transfers the commission of the affiliate network, which takes its part, and transfers the rest to the partner.

The invaluable role of the partner network

The affiliate network plays an important role in affiliate marketing. Its task is to collect on its website partner programs that publishers (partners) can join. In short, it allows you to establish a relationship between the seller and the partner.

Although each side of the transaction is important, affiliate networks are trying to maintain very good relationships with publishers. They are responsible for acquiring users, thanks to which the network receives its part of the commission for sales.

When a partner joins the partner network, they get access to active affiliate programs. After acceptance by the seller, he will be able to start activities aimed at acquiring users.

Forms of remuneration in affiliate marketing

Depending on the assumed goal, cooperation under the partner program can be accounted for in different ways.

Pay Per Sale (PPS) – is a commission on sales, which includes a specific part of the revenue from the purchase.
Pay Per Lead (PPL) – is a set amount paid for each specific user action, e.g. filling out a form, leaving an email address.
Pay Per Click (PPC) – is a specific amount paid for each click on the ad.

They are also types of affiliate programs, among which PPS and PPL are the most popular. Due to the high probability of fraud, PPC is rarely carried out.

Affiliate marketing – how to reach the user?

When talking about affiliate marketing, it’s worth considering how to reach the user. There is no one specific technique to “entice” customers – it all depends on the individual actions taken by the partner. He must work out the right strategy himself – so that he brings the best results.

Advertising banners

Although advertising banners already have their splendor behind them, they are still considered a good way to attract users. A visually attractive advertisement with an encouraging slogan can lead to a click, as a result of which the user will go to the seller’s website and decide to buy or take any other desired action.

Offer rankings

Users are happy to seek advice on the best products. Partners use this to create ranking websites, e.g. personal accounts, cosmetics, insurance, etc. Based on specific parameters, they create product combinations, which can then be purchased by clicking the appropriate link.

Mailings

Mailings are also one of the forms used in affiliate marketing, which works similarly to banners. Due to the fact that the message comes to the person’s mailbox, there is a greater likelihood of clicking and moving to the seller’s website.

Why is it worth betting on affiliate marketing?

The essence of affiliate marketing meant that this form of cooperation between the seller and the partner brings mutual benefits.

– The publisher receives a commission for reaching the user and encouraging him to perform a specific action.
– The seller sees increasing sales.

In addition, the advantage of partner programs is the opportunity to promote the offer or increase brand awareness at low costs and low risk.

From the publisher’s point of view, the advantage is actually full freedom in terms of actions taken. The effect counts, so acquiring users can be done not only through banners, but also other methods considered by the publisher as the most effective.

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