Choose the Right Affiliate Model
The four primary models for online affiliate marketing are:
- Pay-Per-Lead (PPL)
- Pay-Per-Sale (PPS)
- Pay-Per-Install (PPI)
- Pay-Per-Download (PPD)
PPL and PPS strategies are often implemented simultaneously, with increasing incentives being offered to the affiliate partners. For example, 10 verified leads can be worth $1 to the affiliates, but it can be worth much more if one of those PPLs also convert into a sell and qualify as a PPS.
PPI and PPD may seem identical initially, but they are not. For example, Clash of Clans has a fixed table for their affiliates, based on how many people install the app after being redirected by the specific affiliate partner. On the other hand, stock photo sites such as Shutterstock will pay their PPD affiliates when a business or private party downloads (equal to buying/renting) one or more of their listed/unlisted stock photos or memberships, after being redirected by the affiliate. Which affiliate marketing model you choose should be based on what you are marketing and your overall budget.
Evaluate Websites for Maximizing Your Affiliate Marketing Budget
It should be apparent that when the budget for affiliate marketing is already slim, you need to be particularly choosy about how to allocate it. In other words, you must choose your affiliate partners with careful discretion to improve your company’s ROI in affiliate marketing. Fortunately for online businesses, there is now an actual valuation matrix which makes coming up with a number that accurately evaluates your current and potential affiliate partners rather easy! Follow the link and chances are that you will be able to shuffle and reallocate your 2022 affiliate marketing budget with greater ROI.
Affiliates and Businesses Should Have Clear, Definable Connections
The business needs to be able to establish a clearly definable connection between their targets and the affiliate. In other words, the chances of the target audience coming across the affiliate link should be high enough for the affiliate model to be even considered as justifiable. For example, a SaaS vendor that offers affordable accounting and tax management solutions to small, local companies will have a better chance of landing clients if their affiliates are business/money management blogs and local news sites that are dedicated to a particular locality.
Similarly, if you have a recording studio available for rent, your affiliate links will do best on local indie music blogs. If the product is digital though, such as a video game or a universally useful mobile app, then geographical localization of your affiliates is no longer as important for obvious reasons.
Even if you own a few affiliate blogs yourself, you can put these tips to good use. For example, post evaluation of your own blogsites, you should be able to recognize its shortcomings and strengths. The same insight that helps businesses recognize good affiliate partners should also help you in making your own blogsites better suited for becoming ideal affiliate partners. It will matter both ways in 2022 and beyond.
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