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What’s the difference between
Affiliate Marketing and Brand
Partnerships?
Affiliate marketing is one of the 10 types of Brand Partnerships, but there
is often confusion between the two, and what actually makes it one of
the partnership types, even though it’s also a stand-alone marketing
channel in its own right - a bit like Sponsorship. Let's now discuss the
fundamental differences between them.
What is Affiliate Marketing?
Good-old Wikipedia Definition:
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.
Refined Definition:
Affiliate Marketing is a performance marketing technique where
websites, otherwise known as publishers, will promote your product or
service in return for a monetary reward.
What are Brand Partnerships?
Brand Partnerships have in the past been described as Joint Marketing,
Co-Marketing or Partnership Marketing, but we are now seeing ‘Brand
Partnerships’ or ‘Partnership Marketing’ as the globally recognised
terms.
Brand Partnerships have seen many definitions in recent years, but in its
clearest form it should be described as:
“Where a brand has the ideal product or service to compliment another
brand; utilising their target audiences to achieve their marketing
objectives via partner campaigns and initiatives.”
What are the fundamental differences between Affiliate
Marketing and Brand Partnerships?
Focus on CPA:
1. Affiliate marketing focuses on CPA (cost per acquisition) and an
advertiser to publisher relationship, while Partnerships should always try
to be reciprocal and mutual – to elaborate on this, affiliate marketing
often involves an advertiser paying a publisher for every referred
customer and sale they send to them. This is known as a CPA, and
although other commission methods are possible, this essentially
describes the relationship between advertiser and publisher. The
advertiser is looking for customers from the publisher's user/reader
base.
A partnership on the other hand should always try to be more than that.
It focuses on not just a one-way distinction, but a mutual relationship
where both can benefit. As described previously, Affiliate marketing can
also be a type of partnership marketing because at the end of the day
there is a benefit for both, except that for the advertiser it’s often
monetary.
The main purpose of partnerships though is to take affiliate marketing a
step further than monetary, and to provide more than simply a tracking
link and the passing of CPA.
Brand to brand:
2. Partnerships are often brand to brand, while affiliate marketing is
content site to brand site relationship – this continues on the above
point, as affiliate marketing focuses on an advertiser to publisher
relationship, while partnerships are both advertiser-advertiser, as well as
advertiser-publisher.
The advertiser is normally a brand that sells something or provides a
service. While the publisher tends to be one that publishers an advert,
often in a form of content, comparison table or cashback placing.
Partnerships on the other hand tend to focus on a brand to brand
relationships. This could in some ways be described as an advertiser to
advertiser relationship.
Partnerships involve like-minded brands promoting each other to their
databases. It’s therefore a mutual relationship, where funds aren’t
always necessary to exchange between both parties. It can be a free
promotion if the other brand is offering equal exposure in return.
Partners are specialists:
3. Partnerships include integrations and more specialist scenarios like
using products. While affiliation focuses on passing customers from one
site to the next. Affiliation is about passing customers from one
user/reader base, often one with tens of thousands of users such as a
comparison site, to an advertiser brand to purchase their products.
While Partnerships are more specialist — it’s more about integrating a
brand’s product within your own to truly benefit the customer — to
provide ease or convenience to them.
An example of this is a bank that doesn’t offer insurance products, nor
has the capacity or experience to build an insurance offering, but they
know there’s an appetite from their customers for one. So, they reach
out and partner with a like-minded insurance company and either white
label their product or keep the branding and expose it to their base. As
you can see this type of partnership takes affiliation a step further than
just a monetary relationship or affiliate link.
Comparing the benefits of each
Whether one type of marketing is right over the other is completely
dependant on the company, its objectives and experience in each area.
Brand Partnerships might benefit one brand, while Affiliate Marketing
may not.
There is a strong argument though that Brand Partnerships include so
many elements of Affiliate Marketing, that it essentially encompasses it.
Others say they are very distinct and both can be run by a company with
positive effects.
Affiliate Marketing can bring an abundance of customers. Some brands
reporting 20% of their overall sales coming from this channel alone.
Sites like cashback and comparison tables attract customers who are
very much in-market. Publishers such as Moneysavingexpert claim to
have 15 million subscribers to their newsletter. Even at a click-through
rate of 1% and a conversion rate of 1% that’s 1,500 customers in one hit
for an advertiser. The opposing view though is that these customers are
often lower value than those from other channels. Reason being,
cashback sites like Topcashback and Quidco, attract customers looking
for deals. Deal-hunters, can be a big problem and give the affiliate
industry a bad name. This is why some retail brands opt to not work with
certain affiliate sites as they do not want to incentivise such behaviour.
They would rather the loyalty of customers coming from more other
channels.
While Partnerships work with like-minded brands who have similar target
audiences. So the audiences might not necessarily be in-market, which
is a downside to partnership marketing. Though they are more likely to
be relevant customers and therefore loyal ones. They also give you that
reach that might have otherwise been untapped. Partnerships also allow
you to provide products and services you may not have had otherwise,
therefore expanding your offering, reach, brand and your revenue.
Concluding the difference between Affiliate Marketing and
Brand Partnerships
In conclusion, it’s a grey area. We’ve highlighted the debate above,
showing how different they are but also included them as one of the 10
types of Brand Partnerships. So as you can see, it’s not distinct or clear.
Overall though both types are meant to achieve your goals via
‘partnership’ methods. And the benefits are dependant on what you want
to achieve.
Disclaimer
The author takes no responsibility for any misuse of information
contained in this guide. All information has been taken from actual
events and imagery or screenshots from free sources. If any owner or
brand wishes to have any information removed, they may get in touch.
He is not responsible for any copyright infringement. This is used purely
for educational purposes and is happy to edit if required.

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What’s the difference between Affiliate Marketing and Brand Partnerships?

  • 1. What’s the difference between Affiliate Marketing and Brand Partnerships? Affiliate marketing is one of the 10 types of Brand Partnerships, but there is often confusion between the two, and what actually makes it one of the partnership types, even though it’s also a stand-alone marketing channel in its own right - a bit like Sponsorship. Let's now discuss the fundamental differences between them. What is Affiliate Marketing? Good-old Wikipedia Definition: 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. Refined Definition:
  • 2. Affiliate Marketing is a performance marketing technique where websites, otherwise known as publishers, will promote your product or service in return for a monetary reward. What are Brand Partnerships? Brand Partnerships have in the past been described as Joint Marketing, Co-Marketing or Partnership Marketing, but we are now seeing ‘Brand Partnerships’ or ‘Partnership Marketing’ as the globally recognised terms. Brand Partnerships have seen many definitions in recent years, but in its clearest form it should be described as: “Where a brand has the ideal product or service to compliment another brand; utilising their target audiences to achieve their marketing objectives via partner campaigns and initiatives.” What are the fundamental differences between Affiliate Marketing and Brand Partnerships? Focus on CPA: 1. Affiliate marketing focuses on CPA (cost per acquisition) and an advertiser to publisher relationship, while Partnerships should always try to be reciprocal and mutual – to elaborate on this, affiliate marketing often involves an advertiser paying a publisher for every referred customer and sale they send to them. This is known as a CPA, and although other commission methods are possible, this essentially describes the relationship between advertiser and publisher. The advertiser is looking for customers from the publisher's user/reader base. A partnership on the other hand should always try to be more than that. It focuses on not just a one-way distinction, but a mutual relationship where both can benefit. As described previously, Affiliate marketing can also be a type of partnership marketing because at the end of the day
  • 3. there is a benefit for both, except that for the advertiser it’s often monetary. The main purpose of partnerships though is to take affiliate marketing a step further than monetary, and to provide more than simply a tracking link and the passing of CPA. Brand to brand: 2. Partnerships are often brand to brand, while affiliate marketing is content site to brand site relationship – this continues on the above point, as affiliate marketing focuses on an advertiser to publisher relationship, while partnerships are both advertiser-advertiser, as well as advertiser-publisher. The advertiser is normally a brand that sells something or provides a service. While the publisher tends to be one that publishers an advert, often in a form of content, comparison table or cashback placing. Partnerships on the other hand tend to focus on a brand to brand
  • 4. relationships. This could in some ways be described as an advertiser to advertiser relationship. Partnerships involve like-minded brands promoting each other to their databases. It’s therefore a mutual relationship, where funds aren’t always necessary to exchange between both parties. It can be a free promotion if the other brand is offering equal exposure in return. Partners are specialists: 3. Partnerships include integrations and more specialist scenarios like using products. While affiliation focuses on passing customers from one site to the next. Affiliation is about passing customers from one user/reader base, often one with tens of thousands of users such as a comparison site, to an advertiser brand to purchase their products. While Partnerships are more specialist — it’s more about integrating a brand’s product within your own to truly benefit the customer — to provide ease or convenience to them. An example of this is a bank that doesn’t offer insurance products, nor has the capacity or experience to build an insurance offering, but they know there’s an appetite from their customers for one. So, they reach out and partner with a like-minded insurance company and either white label their product or keep the branding and expose it to their base. As you can see this type of partnership takes affiliation a step further than just a monetary relationship or affiliate link.
  • 5. Comparing the benefits of each Whether one type of marketing is right over the other is completely dependant on the company, its objectives and experience in each area. Brand Partnerships might benefit one brand, while Affiliate Marketing may not. There is a strong argument though that Brand Partnerships include so many elements of Affiliate Marketing, that it essentially encompasses it. Others say they are very distinct and both can be run by a company with positive effects. Affiliate Marketing can bring an abundance of customers. Some brands reporting 20% of their overall sales coming from this channel alone. Sites like cashback and comparison tables attract customers who are very much in-market. Publishers such as Moneysavingexpert claim to have 15 million subscribers to their newsletter. Even at a click-through rate of 1% and a conversion rate of 1% that’s 1,500 customers in one hit for an advertiser. The opposing view though is that these customers are often lower value than those from other channels. Reason being, cashback sites like Topcashback and Quidco, attract customers looking for deals. Deal-hunters, can be a big problem and give the affiliate
  • 6. industry a bad name. This is why some retail brands opt to not work with certain affiliate sites as they do not want to incentivise such behaviour. They would rather the loyalty of customers coming from more other channels. While Partnerships work with like-minded brands who have similar target audiences. So the audiences might not necessarily be in-market, which is a downside to partnership marketing. Though they are more likely to be relevant customers and therefore loyal ones. They also give you that reach that might have otherwise been untapped. Partnerships also allow you to provide products and services you may not have had otherwise, therefore expanding your offering, reach, brand and your revenue. Concluding the difference between Affiliate Marketing and Brand Partnerships In conclusion, it’s a grey area. We’ve highlighted the debate above, showing how different they are but also included them as one of the 10 types of Brand Partnerships. So as you can see, it’s not distinct or clear. Overall though both types are meant to achieve your goals via ‘partnership’ methods. And the benefits are dependant on what you want to achieve. Disclaimer The author takes no responsibility for any misuse of information contained in this guide. All information has been taken from actual events and imagery or screenshots from free sources. If any owner or brand wishes to have any information removed, they may get in touch. He is not responsible for any copyright infringement. This is used purely for educational purposes and is happy to edit if required.