Would you like to draw extra visitors to your website? Targeted visitors who are interested in your product(s)? But you don't want to pay per click, only when they convert? And you want to be able to decide how much you pay so that it doesn't become loss-making for your company?
Then Affiliate Marketing is the answer! It allows you to address a large group of potential visitors who may otherwise not come into contact with your company. And, what's more, you only pay for these users as and when there is a transaction and then only pay the commission that you want to pay!
Sounds good, but how does it work?
The basic principles of Affiliate Marketing:
You have 3 parties within Affiliate Marketing:
Publisher: a person or company that has content on a website and wishes to generate income via a newsletter or an app on these channels. They can use banners, text links or forms (also called advertising materials) to forward these visitors onto an advertiser.
Advertiser:an advertiser is a company - often an e-commerce company - that provides advertising materials to draw visitors to a website or app in order for them to take action. A fee is paid thereafter to the publisher for this action. This could be a fixed amount per target but could also be a percentage of the transaction amount.
Affiliate network: the affiliate network sites between the publisher and the advertiser. They provide 3 things:
- the technology that registers the targets and feeds this back to the publishers
- the financial processing of commission and the payments between the publishers and advertisers
- the network effect, ensuring there are enough publishers for a company to make a start and that there are enough companies for publishers to make a choice
The information above is a simple summary of how it works in general, but how can it help your company grow?