Affiliate marketing involves a business tapping into the audiences of affiliate websites by providing content like voucher codes or cashback offers to be promoted. Affiliates are rewarded with commission for each sale driven. Traditionally, voucher code sites have built large followings by offering discounts and savings. Cashback sites also form a major part of affiliate marketing, passing a percentage of commissions back to customers. More recently, retargeting affiliates that remind visitors of abandoned carts or serve ads after site visits have proven effective at securing last click conversions. Bloggers have also become prominent affiliates but often do not earn commission due to savvy readers using cashback sites for deals. At its core, affiliate marketing rewards third parties for securing last click conversions

1. What is Affiliate Marketing? By
DMDJ’ Affiliate Experts
Affiliate marketing is a performance-based channelthat works for the
mutual benefit of brands, customers, and a third-party intermediary. The
model, in its basic form, is very simple – a business will tap into the huge
audiences that an affiliate website has by providing said affiliate with
content to push to its customers, which is often in the form of a voucher
code or cashback offer (which wewill get onto in more detail later in the
article). The affiliate is then in turn rewarded commission from the
brand for every sale they drive, easy!
Despite the simplicity of the model, affiliate marketing is an ever
changing world, where the way in which affiliates drive sales is
continually adapting. The fact of the matter remains, whichever affiliate
site the customer clicks on last before making the purchasewins the
commission, as it always has been – but there are severaldifferent
tactical ways in which affiliate channels can earn that ‘last click’.
Traditionally, voucher codes are the key operator. With the promiseof a
discount, free delivery or a free gift with your purchase, voucher code
sites havebeen able to build up armies of loyal followers who constantly
check their homepage, newsletters and push notifications to keep
abreastof the best savings availablefrom the biggest brands online.
Prime examples of these sites are Vouchercodes.co.ukand Voucherbox,
both of which are huge players in this voucher code sector.
Alongsidethis, you will find cashback sites forming the cornerstoneof
the vastmajority of affiliate marketing programmes.

2. Here the commission earned by the affiliate is passed back to the
customer in the formof a cash amount equal to the percentage of sale
that the affiliate earns. The likes of Quidco and Topcashback havehad
great success in this area, paying back millions of pounds to members in
a Robin Hood-styleof taking from the well-established brands and giving
back to the public. Itis all quite heroic really and when there is a
commission increasebeing advertised, well you would be crazy to miss
out!
The way in which the cashback affiliate marketing earns money
is by selling various exposurepackages to brands, often in the form of an
emailed newsletter, socialmedia postor home page placement. The
brand would benefit fromhaving increased activity around a particular
promotion, the affiliate would benefit by receiving tenancy from said
business and more customers would discover the available cashback and
benefit fromearning money back for their purchase – it really is
‘win-win’ for all involved!
In recent years we haveseen the riseof the re-targeter: the overlay
provider, the emailer of abandoned basketcontents, and the server of
adverts once you have left the site. These affiliates are particularly
strong at converting customers, giving them that extra incentive to
purchaseor reminding them of a key marketing messagejustas they are
about to leave the site. Yieldify and Ve Interactive arekey
exponents of these arts, spectacularly securing the last click (and
commission in the process).

3. We also see the blogger and content producer becoming more and more
prominent in the marketspace. With hundreds of thousands, sometimes
millions, of loyal followers, wesee bloggers having more and more
influence in the public’s spending behaviour. This is an area that
continues to grow and one that the channel continues to re-evaluate
how best to reward. The problem lies with the ‘last click’ model that the
affiliate channel has always adopted, where the affiliate who gets the
last click fromthe customer before they purchaseearns the commission.
So in the caseof a blogger, quite often their extensive efforts to write
and postan article about a brand and its products on their blog are not
rewarded – as the customer reading the article will often be savvy
enough to visit a cashback or voucher code site to get a deal justbefore
purchasing – alas taking the last click away from the blogger!Not only
that, customers tend to be near the beginning of the buying process
when researching brands and products by reading blogs and articles –
therefore the likeliness of that person buying the productis far from a
guarantee.
At its core, affiliate marketing is a digital marketing channel where
third parties, such as thoselisted above, promote brands for a
commission which is earned by securing this last click conversion. The
complexities within it are great and intriguing. To learn how affiliate
marketing might work for you and your business, pleasevisitour
Affiliate Marketing servicepage or feel free to contact us at Dmdj
Performance Marketing via phone, email or social media.
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