“Affiliate marketing is one of the internet advertising techniques that allows any online business to affiliate themselves using affiliate programs”
Affiliate marketing has been used by businesses for a long time now, and it remains just as effective as ever. In simple terms, affiliate marketing is marketing your product or service through an “affiliate” – someone that you pay to market your business. For instance, if you manufacture and sell garden supplies – and you open an affiliate program to make your offering known to a much wider audience and thus increase sales.
Now if a popular blogger who has been blogging about gardening and related topics (as a hobby) from a long time, and has gathered a considerable reader base, decides to take up your affiliate program, i.e. become your affiliate, the blogger would be advertising about your offering on their blog – however, this would not look like a traditional advertisement; rather, the blogger would write a blog about how he/she has used your gardening supplies and how well they like it, and how they would recommend it to their readers – and by providing a customized link, the user would be redirected to a special “landing page”, whose sole aim is to sell the product to the user.
Landing pages are merely extensions of the page from which the user has first come – they assume that the user knows a bit or two about the product offered, and help the user make a choice and hopefully make a purchase in the process. If a purchase is made, the blogger receives a commission – a set percentage figure that you and the blogger decide upon before the affiliate marketing process begins. All of this comprises the online affiliate marketing process, and while reading about it might make you a bit confused, the concept is very, very simple. It is important to choose the right internet affiliate company if you are looking to explore and branch out into the affiliate marketing technique to further your product/service offerings.
Three terms that you are bound to hear during your affiliate marketing journey are – cost per sale, cost per lead and cost per click. The cost per sale implies the cost that you, the business owner, incur per successful sale – i.e. the amount that you pay the above blogger as commission if a user that has been redirected through their blog makes a purchase on your website. The cost per lead refers to the amount that you pay your affiliate for making a user visit your website or landing page – and fill a form that provides you with their contact details. This could lead to potential sale, and thus the term cost per lead.
Cost per click is the amount you pay your affiliate when a user clicks on the link on their website that redirects them to your website or landing page. The user need not make any purchase at this point of time – the fact that you received a visitor through an affiliate is the basis for cost per click. The idea behind this is that people who visit your website, even if they themselves do not make any purchase, might let other people know through word of mouth.
Affiliates make money by generating sales, leads and traffic for the Merchants business. Merchants who sell their products and services online or seek other affiliate business activity typically use one of the affiliate program commission payment models below:
A visitor referred by the Affiliate purchases goods and services from the Merchant. This payment structure is referred to as - cost per sale or cost per acquisition (CPA). .
A visitor referred by the Affiliate completes a form on the Merchants web site. This payment structure is referred to as - cost per lead (CPL).
A visitor to the Affiliates web site clicks on a Merchant's banner and visits the Merchant's web site. This payment structure is referred to as - cost per click (CPC).
Aerate has got a tremendous record in promoting customer's product through affiliate marketing. During the affiliate marketing process, we make sure to follow up with the affiliate networks and publishers regarding the status and success rate of the campaign.