Affiliate Marketing is Internet based marketing where one website uses another website to drive in more web-traffic.
Benefits of Affiliate Marketing
A cost effective medium in which to deliver brand awareness
Enables merchants to produce e-commerce revenue without the hassle
Types of Affiliate Marketing
Affiliates: Websites which links back to an e-commerce site such as Amazon.com, e-bay.com with the goal of making a commission for referred sales.
Merchant: The advertiser in an affiliate marketing. Affiliate will be paid commission for the sales.
Affiliate Network: Affiliate network acts as an intermediary between publishers (affiliates) and merchant affiliate programs.
Merchant or Advertiser: an online business that markets and sells goods or services. Merchants establish affiliate programs as a cost-effective method to get consumers to purchase a product, register for a service, fill out a form, or visit a Web site.
Affiliate or Publisher: a Web site owner that earns a commission for referring clicks, leads, or sales to a merchant.
Performance Marketing is any form of online advertising in which a merchant/marketer pays purely for desired results, rather than paying for frequency and reach.
Software Solution Provider: A company that provides the basic tools necessary to administer an affiliate program, including, but not limited to, the ability to register affiliates, provide advertising to affiliates, and to track all activity at the affiliate level.
Network Solution Provider: In addition to providing the tools necessary to administer an affiliate program, these companies also have large numbers of website owners who participate in affiliate programs registered with them. These affiliates then have the opportunity to review and join merchant programs offered through the network.
Affiliate Program Manager: An individual or group within an organization responsible for the success of the affiliate marketing channel. Key functions include: new affiliate acquisition, marketing training and support to affiliates, relationship development, and much more.
Outsource Program Management: An external organization that expertly fills the role of the Affiliate Program Manager for its merchant clients. Such companies typically have deep knowledge of the affiliate marketing arena and key relationships in place.
The Amazon Associates Program, launched in July 1996, was not the first. Although today it’s the largest with over 500,000 affiliate partners.
CDNow came first with their buy web program in November 1994.
AutoWeb.com (October 1995)
Kbkids.com/BrainPlay.com (January 1996)
EPage (April 1996) all pre-date the Amazon program.
Link Share was the first affiliate network solution provider when they launched in 1996.
Be Free also started in 1996 and is currently the only publicly-owned solution provider.
Commission Junction launched in November 1998.
Currently, there are seven network solution providers and over 15 software solution providers.
Affiliates are looking for
Capability for players
High Converting Sites
Expectations of Affiliates
What is the new customer costing
What is the commission being paid
How are the Affiliates and customers being rewarded.