The necessity of working 9 to 5 has dissipated since the emergence of internet marketing. Internet marketing has opened doors to several possibilities and taken networking to a higher degree. Now with internet marketing, people can make money online, work on the go and do business at a convenient time with little constraints.
Internet marketing has several distinct phases that work in sync to ensure the promotion and growth of a business. One of the branches of internet marketing is affiliate marketing. Affiliate marketing is an internet marketing channelthrough which companies, merchants and advertisers pay other companies or people to promote a product it service. With affiliate marketing, all you need is networking. In essence, affiliate marketing requires you to employ your marketing skills to promote the sale of a product and when you record sales based on your marketing, you get a commission.
Affiliate marketing is a win-win situationfor both the marketer and the companies, the marketer promotes the products and drive traffic to the company and is compensated with a stipulated percentage. Affiliate marketing is performance based and it compliments a company’s marketing effort.
There are three parties involved in affiliate marketing, these include the:
Advertiser: also known as a merchant is the company that has a product or service to offer. While they employ other means of promoting their brands and getting sales, they also make use of publishers to increase sales. Advertisers stick to affiliate marketing because it is based strictly on conversionsuch as pay per sale, pay per lead or pay per click
The publisher: the publisher is also known as the affiliate partner, he advertises the products and services of a company in exchange for payment on all sales or deals he influences. The publisher encourages sales by displaying ads, links,texts and many others.
Affiliate network: an affiliate network is the link between the advertisers and the publishersthe affiliate network works with a tracking technology that helps to manage tasks and payment. Advertisers could choose to use their own affiliate network or outsource for an affiliate network to manage their affiliate program.
In its realsense, affiliate marketing is also tied to coupons and loyalty sites, content bloggers also play a prominent role in affiliate marketing. The bloggers and content makers help to promote products and services by writing posts, making videos. The content of the post usually includes the information about a product including its features, pros and cons.
Affiliate marketing also works with performance based models, performance based models common to affiliate marketing includes:
Pay per Lead: This involves a fixed commission, for every qualified action such as online form submission, short survey, free trial or installation, there is a reward of fixed payment
Pay per Sale:publisher get a percentage when they get products sold. The percentage is usually based one agreed by the affiliate and the company.
Pay per Click:an affiliate gets paid for generating valid links whether it leads to a sale or not.
For many companies, affiliate marketing is a step ahead in the competitive world of internet marketing, clicks and leads helps to attract and maintain clients and simultaneously lead to increase in profit without having to invest so much in promotion.