What is Affiliate Marketing?

Affiliate Marketing is an independent distribution system and belongs to the field of online marketing. As with all marketing activities, the goal is to attract new customers or to keep them. The counterpart in the “offline world” is the trade representative. This gets a certain commission for successful sales contracts.

It acts similarly online. This time, the parties involved are Merchant and Affiliate. The merchant is the dealer or the company that wants to sell products. The affiliate is the partner used and usually a website operator. The merchant provides the affiliate with a so-called affiliate link. The partner integrates him into his website. The link redirects the visitor to the merchant`s website.

What types of affiliate marketing exist?

Affiliate Marketing meets the normal Internet users in several ways. These are respectively clickable buttons.

Banners are graphics that are often animated. They are distinguished by a striking design and statement.
These are clickable image files, which are forwarded to the merchant.
Usually, these are not classic buttons from the HTML form, but graphics. These are colored and include a short text and the name of the merchant. But they look like buttons and are partially so animated.
These are classic links. Each text link has an anchor text. This is highlighted by the rest of the text by underlining, a different color and a different size.
These are smaller apps that are integrated into other websites. A widget displays multiple products. After a few seconds the next products appear. If the visitor clicks on a product, he lands on the corresponding side of the merchant.
Product data
In doing so, the entire product data is integrated into the affiliate’s page using CSV or XML files. If the merchant updates the data of a particular product, the data on the affiliate’s page is automatically updated.

What must be taken into account by affiliate marketing?

Commission for affiliate networks
Access the help of affiliate networks, so you can save yourself the tracking and billing on your own. However, a commission is also due for this service.
Rejection by affiliate networks
Affiliate networks also act profit-oriented. Therefore, the commission should not be too low. Leading affiliate networks already have a large number of partners and are therefore not dependent on products with small profit margins.
Own affiliate program
Running an affiliate program on your own requires the use of many resources. While you save the commission of affiliate networks, keeping track of affiliate links and the settlement with the partners require many resources. Organizing this yourself must be well planned and thought through.
An affiliate can proceed frivolous with the resulting link. Ideally, the link should be entered into a web page that is relevant to the topic and informed about the advertised products. However, it is not unusual for him to appear on websites that are not related to the topic or the product. This can damage the image of a merchant.
Protection against fraud
You should secure the tracking of affiliate links, so that scammers and hackers do not steal the income of affiliates. This applies both to the use of network protocols and to the fact that everything is done in the right way.

What are the advantages of this concept?

  • Free advertising spaces
    You increase your presence on the Internet and increase the visibility of your company without having to pay for it.
  • Target group orientation
    In many marketing activities there is a strong unwanted spread. If you advertise on the TV or advertisements in magazines, you do not always reach the desired target group. As a company, for example, you only pay a commission to the affiliate with Pay per Sale if someone actually buys a product.
  • Expenditure
    If you join an affiliate network, you do not have any initial investments. Wrong investments or unprofitable marketing campaigns are so virtually excluded. Due to the performance-related commission, you only pay when the desired result actually occurs, like a sale, a new registration or a newsletter registration.