Affiliate marketing is gaining momentum. By the beginning of 2022, the average affiliate marketing income will reach $8 billion, which is twice the figure recorded in 2015. In short, affiliate marketing is a way to make money on the Internet by promoting certain products of other companies. Let’s take a closer look: how does it work, and what types of affiliate marketing are there?
How Does This System Work?
Affiliate marketing is a type of promotion on the Internet, in which partners (performers) lead the audience to the landing pages of the seller (customer) for a fee.
The division of responsibilities in affiliate marketing for advertising and product creation is made between 4 parties: Advertiser, Publisher, Traffic Source, and Affiliate Network. So, who is responsible for what?
- An advertiser is a store or company that has a specific offer. It is this party that provides an object for promotion, it is the advertiser who allocates funds for advertising and is fully responsible for the risks associated with the work of the partner. The creator of the product receives profit from sales, recognition, and an increase in the customer base.
- A publisher or partner is a person (group of people) who attracts potential customers to purchase a product or order a service. For each goal achieved, the partner receives his own (often fixed) percentage. The publisher receives a salary from the promotion and advertising of someone else’s product, expanding its own audience.
- Traffic Source is a customer who went to a landing page and is a potential buyer. The traffic that is increased by customers is free and paid. The buyer receives the necessary information about a product or service, product or service.
- Affiliate Network is a marketplace for products and offers promoted by customers. The Network acts as an intermediary between Publisher and Advertiser and accelerates money turnover. The Affiliate Network receives profit in the form of the difference between the money received from the seller and paid to the partner.
There are almost no boundaries for affiliate marketing today. The right choice of sites and the right strategy will benefit each party involved.
Effective Types Of Affiliate Marketing
In this case, types are different forms of cooperation between the contractor and the customer. How does the second affect the performance of the first? In order to understand this and answer the question, it is enough to familiarize yourself with the payment methods for the partner’s services:
- per impressions – NOT a popular collaboration model that involves payments for every 1000 ad impressions. This type of partnership is unlikely to achieve targeted traffic, but it will play into the hands of brand spread anyway.
- per clicks – the scheme by which most contextual and banner ads work. If an ad (posted by a partner) attracts attention, and users go to the landing page, then we can assume that the mission has been successfully completed.
- for a completed action – a form of cooperation, where a partner receives his percentage only for the action performed: registering on the platform, subscribing, ordering a product/service, downloading a book, etc.
Affiliate Marketing Benefits
The affiliate marketing industry is still full of opportunities, and even if you are not yet sure whether you are ready to take advantage of these opportunities, let’s talk about the main advantages of this type of income.
- The ability to make good money around the clock, and anywhere in the world.
- No need to search for suppliers and direct communication with customers.
- Lack of cash spending on the purchase of goods, rental of premises, and remuneration of employees.
Hopefully, with this quick beginner’s guide, you’ve figured out what affiliate marketing is, where to start, and perhaps how to become a pro!
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