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An online AƎliate Program is a revenue-sharing marketing strategy, Lecture notes of Digital Marketing

Affliate Marketing is an online marketing advertising channel that puts merchants in charge of an online marketing sales force.

Typology: Lecture notes

2015/2016

Available from 08/19/2023

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What Is An Affiliate Program?
An online Aliate Program is a revenue-sharing marketing
strategy in which Aliates will drive trac to a merchant’s
website in return for a portion/percentage of the revenues the
merchant receives from that trac.
Where a third party (or Aliate) generates sales or leads for
the seller (or Merchant) and receives a commission for each
successful sale or lead. It is probably the most widespread
form of Pay On performance (POP) marketing
Benefits Of Having An Affiliate Program?
A cost eective medium to deliver brand awareness
Creates brand loyalty by a personal approach through an
individual web site
Enables merchants to produce e-commerce revenue without
the hassle
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Download An online AƎliate Program is a revenue-sharing marketing strategy and more Lecture notes Digital Marketing in PDF only on Docsity!

What Is An Affiliate Program?

  • An online Aliate Program is a revenue-sharing marketing strategy in which Aliates will drive trac to a merchant’s website in return for a portion/percentage of the revenues the merchant receives from that trac.
  • Where a third party (or Aliate) generates sales or leads for the seller (or Merchant) and receives a commission for each successful sale or lead. It is probably the most widespread form of Pay On performance (POP) marketing

Benefits Of Having An Affiliate Program?

  • A cost eective medium to deliver brand awareness
  • Creates brand loyalty by a personal approach through an individual web site
  • Enables merchants to produce e-commerce revenue without the hassle
  • Aliate Marketing is an online marketing advertising channel that puts merchants in charge of an online marketing sales force.
  • Merchants look to earn revenue from sale of their goods or services, pay aliates (publishers) who want to earn revenue from placement of product banners or text links on their site.
  • Merchants only pay aliate partners for results, such as a lead or a purchase “pay-for-performance”.

Terms Used

  • The Aliate (Publisher)
  • The Merchant (Advertiser)
  • The Aliate Network
  • Aliates, anybody with a website or blog who wishes to generate additional income
  • Aliates may already have established trac, extensive database lists for email marketing, or may use SEO and PPC to get visitors to their site (and then to the merchants’ sites)

Aliates (Advertisers)

e-commerce sites Others

shopping sites loyalty sites ecommerce aggregators

cash-back sites

point earning sites blogs

  • Having a programme and commission structure in place to attract aliates
  • Getting enough aliates to join your programme
  • Ability to track which aliate generated a successful sale or lead
  • Easy to manage the programme and pay the aliates
  • Ability to reject sales or leads if they are fraudulent or payment is not received
  • Choice of DIY or using an aliate network

Key elements

  • Sales or leads are tracked through a combination of tracking code on the Merchant’s website and Cookies added to the visitors computer
  • The Merchant pays a price per lead or commission for each sale (via the network)
  • The network makes all the payments to the aliates

Aliate networks – tracking sales/leads

Popular Aliate networks

Types of Affiliates

- Shopping sites – virtual malls. The consumer shops for various Sites brands and products on site. These sites are not driven by particular coupon or deal oer - Coupon/Deal – most popular aliate model. These sites are shopping sites that require merchant to provide consumer with either a coupon, percent o savings, or free shipping oer - Comparison Shopping – sites sell items using a comparison model. These sites usually require a data feed of merchants’ products.

Types of Affiliates Sites

(contd…)

- Loyalty/Rewards – sites where a percent of the merchant’s commission is used to pay reward to consumer. Allows consumer to select their reward option. Rewards can include cash, airline miles, credit card points, or donation to charity or organization - Content – sites are usually not shopping sites. Consumers go to sites because the content is of particular interest. Sites to particular product contained in site - Blogs/Forums – sites post or feature article that focus on a particular product or merchant and include an product aliate link to the product.

  1. Aliate obtains Merchant creative from Aliate Network and loads to their site
  2. Consumer visits Aliate site and clicks Merchant banner
  3. Cookie is set on Consumer’s browser which identies Merchant, Aliate and link
  4. Consumer is directed to Merchant site
  5. Aliate ID is captured by Merchant in referring URL
  6. Consumer makes purchase from Merchant
  7. Cookie information sent to Aliate Network
  8. Merchant transmits sales le to Aliate Network which includes Aliate ID
  9. Aliate Network tracks sales transactions with Aliate ID and pays Aliate

How Does It Work?

Visitor

Clickson

Affiliate Websit e

throug^ Goes h

Redirects to

Sends commission

Tracking Softwar e

Merchant Site

How Does It Work?

Examples of Affiliate

Marketing

Examples of aliate

marketing

Quidco - Cash back

Greasy palm - Cashback