What is it?
WHAT IS AFFILIATE MARKETING?
- Affiliate Marketing increases brand awareness
- Brings your products and or services right into the homes of your target audience
- Increases conversions and ultimately sales or leads
- Your affiliates are your partners
- Good old fashioned relationship building
What is affiliate marketing?
Some call this performance based marketing, some call it referral marketing, some call it revenue sharing, some call this loyalty marketing and I have heard it being called partner programs, associate programs, all these terms are correct. Affiliate marketing is predominantly on-line advertising whereby the affiliate is paid a small commission for referring their own website traffic to an online store. Affiliates get rewarded based on an action performed by his/her referred visitor, the affiliate remuneration (referred visitor action) can be based on cost per click, pay per sale, CPA, CPA (2) can also mean pay per lead (example, insurance quotes).
“A system of advertising in which site A agrees to feature buttons from site B, and site A gets a commission on any sales, clicks or leads generated for site B. Affiliate Marketing is on line advertising where the advertiser (Merchant) pays for advertising purely on results. All affiliate campaigns are based on a revenue share or hybrid commission/leads deal.”
Source: Jessica Luthi, E-Consultancy.com (Affiliate Marketing–A Buyers Guide April 2004)
“High-level findings from USA Affiliate Census… At the hobbyist end of the spectrum, nearly a quarter of affiliates (23%) generate less than $50 per month in sales for their merchants, and a further 7% generate between $50 and $100. At the other end of the scale, 17% of affiliates generate more than $50,000 a month in revenue for their merchants”
Reported in the United Kingdom Affiliate Census, “the UK affiliate market was worth £3.82B in 2008, a 22% increase from £3.13B in 2007. An estimated £227M was paid last year in commissions and fees to affiliates and networks.”
Affiliate Marketing is based on a revenue share where the advertising risk is reduced for the advertiser, its a win win scenario for the advertiser/merchant and the affiliate.
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