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Affiliate Marketing  E-Marketing s40 Group 3    Mark Angelo Reyes       Aaron Ngui     Lester Ruidera
Affiliate MarketingDEFINITION:•A type of online marketing where the system of rewardcompensation is based on referrals.•Af...
Affiliate Marketing• Affiliate Marketing increases brand awareness• Brings your products and or services right into the  h...
Affiliate MarketingHOW IT WORKS:1.Affiliate refers a potential customer to the site2.Some customers performs desired actio...
Affiliate MarketingACTION & REWARDS:•There has to be an agreed upon action that correspondsto the affiliate earning commis...
Affiliate MarketingACTION & REWARDS:•Revenue Share   – Ideal commission structure; the better the sales performance is    ...
Affiliate MarketingTRACKING:•The key is to be able to track down the whole processso the accuracy of the rewards will be r...
Affiliate MarketingAFFILIATE PROMOTION:•Main types of affiliates:   –   Personal websites   –   Content and niche sites (c...
Affiliate MarketingAFFILIATE PROMOTION:•Toolbars and browser extensions•Social Network applications
Affiliate MarketingAFFILIATE NETWORKS:•An affiliate network acts as a gateway betweenmerchants and affiliates
Affiliate MarketingSETTING UP AN AFFILIATE CAMPAIGN:•Construct a goal (new business, increased sales,market awareness, etc...
Affiliate MarketingSETTING UP AN AFFILIATE CAMPAIGN:•Decide on commissions, commission tiers, rewards, andtracking mechani...
Affiliate MarketingISSUES:•There is very little control over affiliate activity   – Email spam; Search Engine Spam; Trojan...
Affiliate Marketing  E-Marketing s40 Group 3    Mark Angelo Reyes       Aaron Ngui     Lester Ruidera
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Affiliate Marketing

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Transcript of "Affiliate Marketing "

  1. 1. Affiliate Marketing E-Marketing s40 Group 3 Mark Angelo Reyes Aaron Ngui Lester Ruidera
  2. 2. Affiliate MarketingDEFINITION:•A type of online marketing where the system of rewardcompensation is based on referrals.•Affiliate marketing is widely used to promote websitesand affiliates are rewarded with every customer providedthrough their efforts.•Not to be confused with referral marketing; maindifference is that affiliate marketing is driven by financialmotivation, referral marketing relies on trust and personalrelations to drive sales.
  3. 3. Affiliate Marketing• Affiliate Marketing increases brand awareness• Brings your products and or services right into the homes of your target audience• Increases conversions and ultimately sales or leads• Your affiliates are your partners• Good old fashioned relationship building
  4. 4. Affiliate MarketingHOW IT WORKS:1.Affiliate refers a potential customer to the site2.Some customers performs desired action3.Merchant rewards affiliate based on this action
  5. 5. Affiliate MarketingACTION & REWARDS:•There has to be an agreed upon action that correspondsto the affiliate earning commission.•CPA (Cost Per Action) – Fixed commission for a particular action•CPL (Cost Per Lead) – Fixed commission for a potential sale – Affiliates are not responsible for the offline conversion process•Revenue Share•CPC
  6. 6. Affiliate MarketingACTION & REWARDS:•Revenue Share – Ideal commission structure; the better the sales performance is results to better commissions earned – The structure can be tiered•CPC (Cost Per Click) – Rarely used; primarily responsible for driving large amounts of traffic – Risk of click frauds
  7. 7. Affiliate MarketingTRACKING:•The key is to be able to track down the whole processso the accuracy of the rewards will be recognized•This activity is done through specialized trackingsoftware that keeps tabs on all obtained data•Successful tracking is fundamental in e-marketing andaffiliates suffer if its not done right (i.e. multiple referralsfrom multiple affiliates)• Cookies are sometimes used to enable merchants toremember the customer and for tracking purposes
  8. 8. Affiliate MarketingAFFILIATE PROMOTION:•Main types of affiliates: – Personal websites – Content and niche sites (created for specific topics) – Email lists (email newsletters) – Loyalty sites – Coupon and promotion sites – Comparison sites – Search affiliates *
  9. 9. Affiliate MarketingAFFILIATE PROMOTION:•Toolbars and browser extensions•Social Network applications
  10. 10. Affiliate MarketingAFFILIATE NETWORKS:•An affiliate network acts as a gateway betweenmerchants and affiliates
  11. 11. Affiliate MarketingSETTING UP AN AFFILIATE CAMPAIGN:•Construct a goal (new business, increased sales,market awareness, etc.)•Decide on whether to run your own program or join anaffiliate network•Decide on whether you will run the operation of theprogram or to outsource the same•Scan and examine competitors•Do product feeds and banners
  12. 12. Affiliate MarketingSETTING UP AN AFFILIATE CAMPAIGN:•Decide on commissions, commission tiers, rewards, andtracking mechanisms•Test tracking mechanism•Recruit affiliates•On going communications with affiliates
  13. 13. Affiliate MarketingISSUES:•There is very little control over affiliate activity – Email spam; Search Engine Spam; Trojan Ads; Adware and Spyware;•Lack of Self-Regulation and Collaboration – No legally binding regulations / industry standards
  14. 14. Affiliate Marketing E-Marketing s40 Group 3 Mark Angelo Reyes Aaron Ngui Lester Ruidera
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