Digital marketing and its relevance grow increasingly over time. All that, with extremely high upside potential. People realized that advertising products will never be the same. And that can only mean one thing.
By now you’re probably confused, right?
Let’s clear that confusion right away.
Let’s face the facts here.
The new modern era of marketing has become vital.
And one of the most powerful tools in digital marketing is Affiliate Marketing.
Because it’s a link between two vital elements:
Got it? Great.
But that’s not all there is to it.
So let’s jump right in.
What is an Affiliate Network?
Affiliate Networks are intermediaries between Publishers and Advertisers.
It’s a marketing model where;
Businesses (advertisers) reward Affiliates (publishers) for each customer they bring in.
Well, it involves:
- Customer– web site visitor, mobile device owner, etc.
- Advertiser– provides content and the owner of the offer.
- Publisher– Provider of traffic with advertisement responsibilities.
- Affiliate Network– Link between Publishers and Advertisers.
Things you should know as well:
- Affiliate program: A prepared associate program which publishers promote.
- Affiliate tracking: Unique coding sequence that tells the advertisers who’s getting paid.
Who is the Advertiser?
A company, merchant, or a retailer who wants to advertise his product.
Their main goal is to collect users who are willing to buy.
How do advertisers collect users?
- Hiring publishers to manage the advertisement of the product
- Bringing in high-quality traffic to offers
To ensure that everything is legal, advertisers establish ground rules. They explain how they want their offers to be promoted.
Most important factors?
- Traffic Type
- Ad Format
- Overall approach (promo strategy)
Advertisers (or product owners) earn money on sales with minimal to zero upfront costs.
The fastest way for advertisers to increase their revenue is to work with quality marketers.
The more quality marketers, the merrier.
Why? The answer is very simple.
They bring in more visitors.
More visitors = higher conversion rates.
In plain English, Advertisers are people who have something to sell so they ask affiliates for promotion. Affiliates promote, and just like that, both sides of the coin profit.
Moving on to the other side of the coin.
Who is the Publisher?
Anyone with a website, to some extend of course.
Publisher is an individual website owner or collective business entity.
It can be a guy, or a whole company, depending on the case.
They acquire profit by earning percentages for successful leads/sales. And they do that by generating traffic to advertisers.
Publishers boost their profits by promoting offers on their websites. They convert their own traffic into referrals for advertisers.
More traffic means more conversions,
and more conversions mean more money.
But, there’s something really important you should know
Publishers depend on affiliate programs, so choose wisely.
Affiliate networks provide them:
- Affiliate programs
- Tracking tools for campaigns
- Affiliate support for the offers they generate.
But, most importantly…
They gain access to advertising programs.
So, what’s the difference?
The difference between Advertisers and Publishers
Knowing the difference is extremely important.
- Pay Publishers to get their advertisements shown
- Are not limited by the number of verticals
- Are owners of ad space
- Are the ones who get the money for showing ads of Advertisers
- Selling ad space in-app (both publisher and advertiser)
So how do they get paid?
Pay per Sale
Pay per Sale is the standard revenue model.
Advertisers pay Affiliates (Publishers) a percentage of the sale price after every product purchase.
Pay per Lead
Pay per Lead is a bit more complicated. The advertiser pays the affiliate based on generated leads.
What are leads?
Action such as:
- Filing out contract forms
- Subscription to newsletters
- Downloading software or files
- Trial sign-ups
Pay per Click
Pay per Click – affiliates redirect consumers from their website to the advertiser’s website.
Affiliates get paid based on traffic increase.
More traffic means more clicks,
and more clicks mean more money.
So what does it take to become successful?
How to become a successful Publisher?
Having an audience that shares the same interests. That alone will get you a long way.
Try to establish yourself as an expert in one area. Promote just one product. Don’t go overboard by trying to promote as much as you can.
Once your business starts to grow, choose products that suit you best. When you reach that stage, choose wisely.
Choose products that assure consumer satisfaction. That will increase your profits on a long-term scale. Don’t get over-eager with profit by choosing only the most paid products. Take your time and don’t rush your decision.
Choosing consumer satisfaction over profit might is the way to go. It might look like you’re losing but you’re actually winning. You’ll establish reliability around your brand, and that alone will take you a long way.
You should also take great care when choosing campaigns. No matter how good you are; you’ll earn a lot less money on a bad product than on a good one. So take your time and do your research.
After successfully establishing a well-known brand, you should focus on reviews of products and services within your niche which confirm your expert status within a specific branch that you review.
Reviewing products explains to consumers how they benefit from that particular product.
Anything can be reviewed on the internet. As long as it’s within an affiliate program.
Comparisons go a long way. So try to compare your product to other similar products on the market. Make sure that your review is clear right from the start.
Since there’s a lot of competition; it is more than important to stay on top of all trends to ensure your competitiveness.
How to become a successful Advertiser
As a product owner, your focus should mostly be on:
- Getting in touch with quality publishers
- Hiring quality publishers
Their job is to generate leads, which increase sales, which increases your profit as an advertiser.
Your job is to prepare your product in whichever form it may be. For sales, the publisher’s job is to advertise it.
Note that advertisers mainly choose PPL (Pay per Lead) and PPS (Pay per Sale) models. That’s because they assure conversion rates and sales. PPC models do not guarantee leads/sales.
Placing all your eggs in one basket limits you. Try using several affiliate networks to increase the demographic output of offers.
Testing and refreshing your offers
Testing lets you to optimize for higher offer conversion.
If you want to increase offer performance, try making adjustments by comparing them to your results.
Identifying best traffic sources
Try to find the best traffic sources for your offers. Look for traffic that matches your audience and you’ll profit.
Great offers increase sales and consequentially, your income.
Also, make sure that you strive for qualified leads for your products.
Follow the Rules
All affiliate agreements and terms of service rules must be respected. No exceptions.
Note that there are no shortcuts to success. Ignoring these rules will get you banned.
Website Content and Traffic
Advertisements must be connected with high traffic publishers. Try using rich content as well.
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