Affiliate Marketing – Role Of Affiliate, Advertiser And Affiliate Marketing Network

Affiliate marketing is the start of a new era in the field of advertisement. Affiliate marketing has totally revolutionized the marketing concept. Earlier a company used to promote their products through their own web sites but today they buy prime space on other web sites for displaying their advertisement. A product is advertised online by two or three persons in affiliate marketing. The first is called the advertiser, second is the affiliate and the third is network professional.

Advertiser

The company, which searches for web sites for promoting its product, is called an advertiser in affiliate marketing. Although it can display the advertisement on its own web site but using high traffic web sites through affiliate marketing means more customers.

Affiliate

The web site owner or publisher, which provides prime space on its web site for displaying advertisements to advertisers, is called an affiliate web site in affiliate marketing.

Affiliate Marketing Network provider

Affiliate marketing network provider plays crucial role in affiliate marketing. He gives a common platform to both advertisers and affiliates to come together. It is his duty to maintain a cordial relationship between the two.

The advertising company may have its own web site but displaying advertisement on your own web site is not the concept of affiliate marketing. On the other hand, an affiliate should try to generate maximum volume of traffic to its web site. Only high traffic web sites are able to generate business for advertisers and money for affiliates in affiliate marketing.

Phenomena of affiliate marketing

An advertiser can search for an affiliate through many ways but the best way is to use a network. The advertisers and affiliates can join an affiliate marketing network service providing company by spending a small amount. Affiliate marketing network provider advices advertisers to display their advertisements on high volume traffic web sites. It is the affiliate marketing network, which cross-checks the traffic of an affiliate site so that the advertised product gets maximum attention. The affiliate marketing network service provider takes care that the product is advertised on relevant web site. For example if you are selling school uniforms then your advertisement should be displayed on educational web sites.

Generating revenue through affiliate marketing

When an advertisement is displayed on high volume traffic through affiliate marketing, it certainly gets response. The visitors of affiliate web site may click on advertisement, leave their contact details, sign up for a news letter, buy or show their intention to buy the product at a later date. The affiliate gets his share according to the response and the advertiser gets probable customer for his product. We can say that the advertiser earns money by selling the product and the affiliate by response in affiliate marketing. Revenue is share between the two in affiliate marketing through the affiliate marketing network provider. Advertiser makes payment to the affiliate marketing network and the payment is further advanced to affiliate site owner. The affiliate marketing network provider keeps a close watch over the response of visitors on an advertisement. In this way affiliate marketing network is also helpful is avoiding any dispute between advertiser and the affiliate.

My next article will throw light upon latest affiliate programs such as Cost-per-Click and Cost-per-Sale.

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What the Heck is Affiliate Marketing?

Affiliate Marketing in a Nutshell
Affiliate marketing is a form of performance based advertising. Whereas with a traditional advertising buy – let’s say it’s in a magazine – an advertiser pays an up front fee to place their message and gambles that they will make money, with performance-based advertising the advertiser pays no up-front cost for the placement. Rather, they pay a fee every time a specific action – purchasing a product, signing-up for a service – is taken. Affiliate marketing connects content publishers and merchants working in relevant market niches, often through an affiliate network.

What is an ‘Affiliate’?
An ‘affiliate’ is just a fancy name for anyone who publishes content. Affiliates can have many types of platforms – a social networking site, a blog, an e-mail newsletter – anything really. The affiliate creates compelling content to drive traffic to their site. They embed relevant advertisements in their site, either directly in the content or adjacent to it. If the affiliate is compelling, users will click on the offers displayed on their sites. If the user takes the merchant’s desired action, the affiliate receives a commission.

What is a ‘merchant’?
A merchant is an advertiser with a product to sell. They develop ad-content and place it on affiliate sites. The affiliates generate content to drive users to the affiliate’s site and convince them to click on the merchant’s offer. When the user takes the merchant’s desired action – purchases a product, applies for a credit card, signs-up for an e-mail newsletter – the merchant pays a commission to the affiliate.

What is ‘affiliate network’ and why do we need them?
The paradigmatic example of affiliate marketing is Amazon.com. Amazon developed a program in the late 1990s where content publishers can sign-up for an ‘affiliate account’. A publisher, let’s say a blog about mortgage lending, reviews a book called Learning the Basics of Mortgage Lending and includes a link to purchase it. If the user clicks the link and buys the book, the affiliate receives a commission equal to a percentage of the purchase.

This model works well for an industry giant, but most merchants don’t want to (or can’t) invest in the internal capacity to place affiliate ads in this manner – it just isn’t cost effective. Enter the affiliate network. Affiliate networks connect content publishers with merchants. A merchant develops a campaign and gives it to the network. The affiliate network gives its affiliates the opportunity to place the offer on their site if they feel it will perform well there. The affiliate network takes care of all the grunt work from serving ads to making payments to affiliates. This way the exciting opportunities afforded by affiliate marketing are open to a much larger group of merchants and publishers.

Of course there are endless refinements, skills, and trick-of-the-trade to be explored, but that’s affiliate marketing in a nutshell.

Affiliate marketing is a form of performance based advertising. Whereas with a traditional advertising buy – let’s say it’s in a magazine – an advertiser pays an up front fee to place their message and gambles that they will make money, with performance-based advertising the advertiser pays no up-front cost for the placement. Rather, they pay a fee every time a specific action – purchasing a product, signing-up for a service – is taken. Affiliate marketing connects content publishers and merchants working in relevant market niches, often through an affiliate network.

What is an ‘Affiliate’?
An ‘affiliate’ is just a fancy name for anyone who publishes content. Affiliates can have many types of platforms – a social networking site, a blog, an e-mail newsletter – anything really. The affiliate creates compelling content to drive traffic to their site. They embed relevant advertisements in their site, either directly in the content or adjacent to it. If the affiliate is compelling, users will click on the offers displayed on their sites. If the user takes the merchant’s desired action, the affiliate receives a commission.

What is a ‘merchant’?
A merchant is an advertiser with a product to sell. They develop ad-content and place it on affiliate sites. The affiliates generate content to drive users to the affiliate’s site and convince them to click on the merchant’s offer. When the user takes the merchant’s desired action – purchases a product, applies for a credit card, signs-up for an e-mail newsletter – the merchant pays a commission to the affiliate.

What is ‘affiliate network’ and why do we need them?
The paradigmatic example of affiliate marketing is Amazon.com. Amazon developed a program in the late 1990s where content publishers can sign-up for an ‘affiliate account’. A publisher, let’s say a blog about mortgage lending, reviews a book called Learning the Basics of Mortgage Lending and includes a link to purchase it. If the user clicks the link and buys the book, the affiliate receives a commission equal to a percentage of the purchase.

This model works well for an industry giant, but most merchants don’t want to (or can’t) invest in the internal capacity to place affiliate ads in this manner – it just isn’t cost effective. Enter the affiliate network. Affiliate networks connect content publishers with merchants. A merchant develops a campaign and gives it to the network. The affiliate network gives its affiliates the opportunity to place the offer on their site if they feel it will perform well there. The affiliate network takes care of all the grunt work from serving ads to making payments to affiliates. This way the exciting opportunities afforded by affiliate marketing are open to a much larger group of merchants and publishers.

Of course there are endless refinements, skills, and trick-of-the-trade to be explored, but that’s affiliate marketing in a nutshell.