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Affiliate marketing understanding the basics


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Affiliate marketing is one of the most effective and powerful ways of earning money online. This is an opportunity that gives everybody a chance to make a profit through the Internet.

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Affiliate marketing understanding the basics

  1. 1. Affiliate Marketing An Introduction
  2. 2. BigRock What is Affiliate Marketing? Affiliate Marketing is a big word, loaded with meaning but it simply means marketing the products of a firm that you are associated with. Affiliate Marketing is a performance- based marketing channel where the business rewards the affiliate for every visitor or a customer brought about by the affiliate’s own marketing efforts. INDUSTRY01
  3. 3. BigRock Affiliate Marketing Process INDUSTRY02
  4. 4. BigRockWhy is it critical for an Affiliate? 1. Low Investment Budget 2. No Need For Inventories 3. Passive Income Through Leverage Strategy INDUSTRY03
  5. 5. BigRock Affiliate Eco-System 1. Publisher/Affiliate 2. Affiliate Network – marketplace 3. Merchant – runs the program INDUSTRY04
  6. 6. BigRock Affiliate Eco-System INDUSTRY05
  7. 7. Affiliate Marketing How It Pays
  8. 8. BigRock Types of Models the Affiliate Programs consist of. 1. CPA – Cost per Action Here, the merchant site pays an affiliate only when a customer referred by an affiliate makes a purchase. 2. CPL – Cost per Lead Companies with these programs that adopt this model pay their affiliates based on the number of visitors they refer who sign up as leads. 3. CPC – Cost per Click INDUSTRY In this model, the merchant site pays the affiliate based on the number of visitors who click on the link to come to the merchant’s site.06
  9. 9. BigRock 4. CPM – Cost per 1000 Impressions This refers to the cost of internet marketing campaigns where advertisers pay for every 1000 times their ad is displayed, usually in the form of a banner ad on a website, but can also refer to advertisements in Email advertising. INDUSTRY07
  10. 10. BigRockPros & Cons of the Affiliate Models :• Companies which do not have reliable tracking systems to monitor actions have difficulties managing cost per acquisition affiliate programs. Several affiliate networks specialized in cost per action advertising can help overcome these challenges.• CPL (Cost-per-lead) is based on the consumer completing a form (such as subscribing to an email newsletter). CPL has a lower financial risk for the Advertiser, compared with CPM (Cost per Thousand impressions) and CPC.• CPC (Cost-per-Click) pricing models, commonly found on search engines, compel advertisers to pay for clicks from people that might never sign up on the advertiser landing page. INDUSTRY• In a CPM (Cost-per-Thousand) pricing model, advertisers are forced to pay for wasted impressions.08
  11. 11. Affiliate MarketingThe Specifications of an Affiliate Program
  12. 12. BigRockTracking mechanisms in the Affiliate Marketing Process :-Cookie period : An Affiliate Cookie is alive for a time period as specified by the merchant. BigRock has a 90 day cookie period as compared with the other Affiliate Marketing programs which usually have a 30-60 day cookie period. This makes it easier for the affiliates to earn commissions on sales that happens within the cookie period.Affiliate code : An Affiliate Code helps to identify when transactions take place. The Affiliate Code acts as a piece of information passed everytime a visitor completes an action specified by the merchant. Most affiliate codes are placed on the order completion page of the Merchant’s website. INDUSTRY09
  13. 13. BigRockSimply put, affiliate programs are arrangements in which an online merchantWeb site pays affiliate Web sites a commission to send them traffic. INDUSTRY 10
  14. 14. BigRockThese affiliate Web sites post links to the merchant site and are paidaccording to a particular agreement. INDUSTRYRecruiting affiliates is an excellent way to sell products online, butit can also be a cheap and effective marketing strategy; it’s a goodway to get the word out about your site. 11
  15. 15. BigRock BigRock Affiliate Program INDUSTRY12
  16. 16. Thank You