This document provides an overview of affiliate marketing. It defines affiliate marketing as a type of performance-based marketing where advertisers reward affiliates for each new customer brought by the affiliate's own marketing efforts. There are three key players: the merchant who sells products/services, the affiliate who promotes the merchant, and the affiliate network that acts as a liaison between the two. The document then describes how the affiliate marketing process works, popular industries/models, common affiliate sites/mediums used, and provides definitions for merchants and affiliate networks.

1. AFFILIATE MARKETING
BY SOURABH VAID

2. What is Affiliate Marketing?
Affiliate marketing is a type of performance-based marketing in
which a business rewards one or more affiliates for each visitor
or customer brought by the affiliate's own marketing efforts.
Merchants look to earn revenue from sale of their products or
services, pay affiliates (publishers) who want to earn revenue
from placement of product banners or text links on their site.
Merchants only pay affiliate partners for results, such as a lead or
a purchase “pay-for-performance” or other performance criteria.

3. Who are the Key Players?
There are three key players in any affiliate program:
1. 1. The Merchant (Advertiser)
2. The Affiliate (Publisher)
3. The Affiliate Network

4. Who is a Merchant
A company/organization who wants to sell their product/services

5. What is An Affiliate Network?
An Affiliate Network is a third party that acts as liaison between Affiliates
and Merchants
•Allows Affiliates to find Merchants which are suitable for their site
•Allows Merchants to find Affiliate sites that expands reach to their
target audience
•Services include tracking technology, reporting tools, payment
aggregation and processing
•Provides a creative bank or repository for storing and accessing creative
assets
•Is no cost for an Affiliate to join

6. How Does Affiliate Marketing Works?
•Affiliate obtains Merchant creative from Affiliate Network and loads to their site
•Consumer visits Affiliate’s site and clicks Merchant banner
•Cookie is set on Consumer’s browser which identifies Merchant, Affiliate and link
•Consumer is directed to Merchant site
•Affiliate ID is captured by Merchant in referring URL
•Consumer makes purchase from Merchant
•Cookie information sent to Affiliate Network
•Merchant transmits sales file to Affiliate Network which includes Affiliate ID
•Affiliate Network tracks sales transactions with Affiliate ID and pays Affiliate

7. Top Industries in Affiliate Marketing
1. Financial Services
2. Travel
3. Retail
4. Telecom
5. Broadband
6. Gaming
7. Recruitment

8. Affiliate Program Models
•CPC – Cost per click – The affiliate is paid for every click which he/she generate
•CPA – Cost per acquisition – The affiliate is paid a fixed amount for every
conversion which he/she generate
•CPS – Cost per sale – The affiliate is paid a certain amount of transaction value
for every transaction which he/she generate
•CPL – Cost per lead – The affiliate is paid a fixed amount for every filled up
query form
•CPM – Cost per mille (a.k.a. Cost per thousand impression) – The affiliate is
paid for every thousand impression which he/she serve on their website/blog
•CPO – Cost per open – The affiliate is paid for every mailer opened
•CPV – Cost per Visit – The affiliate is paid for every visit/session they generate
for a website

9. Mediums used by Affiliates
 Search
 Email marketing
 Portal
 Price comparison
 Rewards/ Loyalty
 Shopping Directories
 Content

10. Types of Affiliates Sites

11. Shopping – site are virtual malls. The consumer shops for various
brands and products on site. These sites are not driven by particular
coupon or deal offer

12. Coupon/Deal – most popular affiliate model. These sites are
shopping sites that require merchant to provide consumer with
either a coupon, percent off savings, or free shipping offer

13. Comparison Shopping – sites sell items using a comparison model.
These sites usually require a data feed of merchants’ products.

14. 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

15. Search – affiliates promote merchants via search engine marketing, using
either natural or paid search practices.

16. Blogs/Forums – sites post or feature article that focus on a particular
product or merchant and include an product affiliate link to the
product.

17. Infographic

18. Thank you