Definition, Explanation
A form of the classical network-marketing on the web is the so-called Affiliate Marketing, also known as partner programs or associate programs. The merchants who are companies who want to campaign for their products pick themselves their Affiliate publishers who offer web-pages about their products/services. These affiliates provide advertising space on their web-pages and guide potential customers to the product by information and recommendations. The web-page provider gets paid in one of the following ways:
- Pay-per-click: Every click on an advert is paid
- Pay-per-lead: Gaining an adress by information-request or download or similar is paid
- Pay-per-sale: Every successful sale results in a commission for the web-page provider
Advantages for the company are: they reach their target group very precisely, cheaper client acquisition compared to other advertising actions and payment corresponding to clients' interest, increasing their degree of popularity, well-targeted gaining of new clients and, in effect, higher sales figures. The affiliate, in turn, gets paid.
Many companies today offer partner programs or enthrust agencies who service several companies with their advertisement. An affiliate first has to apply for the affiliate program. The company then checks whether the offered web-page fulfills their requirements and hereupon agree to activating it. The embedding of the adverts can be made by banners or text-links. The codes required for integration on the web-page have been prepared and are taken over by simple copying.
Tips, Checklist
For Affiliates:
- Take into account, when developing your web-page, in how far you want to earn money through affiliate programs
- Already when you build your web-page, look for suitable affiliate programs and integrate them
- For virtually every topic, there are suitable google and amazon affiliate programs
- Making money with affiliate programs takes time and, first of all, patience. Users do not significantly click the adverts until your web-page itself is visited with a certain frequency. To type in an adress or to order something, takes even longer. Required is the user's trust in your webpage and the provider
- The merchants' products should be in line with the content of your web-page
- In the beginning, do not expect too high income from the affiliate programs. Mostly it is a little extra income that can help you cover fixed expenses for maintaining your web-page. The clicking rate and the user number are often too low to generate a remarkable income. Pay-per-click mostly brings a few cents only
- Use the existing programs and affiliate-agencies. Here, everything has been prepared, and all you have to do is integrate the code. Today there are affiliate programs in almost every area. Make your choice not only for the best conditions, but first of all for the suitability of the offered product
- In case you have made your own, positive experience with the product of the merchant, you can well recommend it with a few lines
More information
Last update: 20.11.2008