An Introduction

Affiliate Marketing

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What is Affiliate Marketing?Affiliate Marketing is a big word, loadedwith meaning but it simply meansmarketing the products of a firm that youare associated with.

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Affiliate Marketing is a performance-based marketing channel where thebusiness rewards the affiliate for everyvisitor or a customer brought about bythe affiliate’s own marketing efforts.

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Affiliate Marketing Process

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Process

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Why is it critical for an Affiliate?1. Low Investment Budget

2. No Need For Inventories

3. Passive Income Through Leverage Strategy

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Affiliate Eco-System

1. Publisher/Affiliate

2. Affiliate Network – marketplace

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3. Merchant – runs the program

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Affiliate Eco-System

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How It Pays

Affiliate Marketing

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Types of Models the Affiliate Programs consist of.

1. CPA – Cost per Action

Here, the merchant site pays an affiliate only when a customer referred by an affiliate makes a purchase.

2. CPL – Cost per Lead

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Companies with these programs that adopt this model pay their affiliates based on the number of visitors they refer who sign up as leads.

3. CPC – Cost per Click

In this model, the merchant site pays the affiliate based on the number of visitors who click on the link to come to the merchant’s site.

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4. CPM – Cost per 1000 Impressions

This refers to the cost of internet marketing campaigns where advertisers pay for every 1000 times their ad is displayed, usually in the form of a banner ad on a website, but can also refer to advertisements in Email advertising.

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• Companies which do not have reliable tracking systems to monitor actions have difficulties managing cost per acquisition affiliate programs. Several affiliate networks specialized in cost per action advertising can help overcome these challenges.

• CPL (Cost-per-lead) is based on the consumer completing a form (such as subscribing to an email newsletter). CPL has a lower financial risk for the Advertiser, compared with CPM (Cost per Thousand impressions) and CPC.

Pros & Cons of the Affiliate Models :

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Advertiser, compared with CPM (Cost per Thousand impressions) and CPC.

• CPC (Cost-per-Click) pricing models, commonly found on search engines, compel advertisers to pay for clicks from people that might never sign up on the advertiser landing page.

• In a CPM (Cost-per-Thousand) pricing model, advertisers are forced to pay for wasted impressions.

The Specifications of an Affiliate Program

Affiliate Marketing

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Tracking mechanisms in the Affiliate Marketing Process :-

Cookie period :

An Affiliate Cookie is alive for a time period as specified by the merchant. BigRock has a 90 day cookie period as compared with the other Affiliate Marketing programs which usually have a 30-60 day cookie period. This makes it easier for the affiliates to earn commissions on sales that happens within the cookie period.

Affiliate code :

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Affiliate code :

An Affiliate Code helps to identify when transactions take place. The Affiliate Code acts as a piece of information passed everytime a visitor completes an action specified by the merchant. Most affiliate codes are placed on the order completion page of the Merchant’s website.

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Simply put, affiliate programs are arrangements in which an online merchant Web site pays affiliate Web sites a commission to send them traffic.

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These affiliate Web sites post links to the merchant site and are paid according to a particular agreement.

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Recruiting affiliates is an excellent way to sell products online, but it can also be a cheap and effective marketing strategy; it’s a good way to get the word out about your site.

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BigRock Affiliate Program

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