Affiliate Marketing (also known as performance-based marketing) is one of the most cost-effective strategies to bring in new clients. Because you will pay only when traffic towards your website converts into real transactions (buying a product, filling a contact form, signing up to your newsletter, downloading an e-book, etc.) you low the risks and save on marketing costs.
Cost-per-Action emerged as an alternative to other forms of online advertising such as Cost-Per-Click and Cost-Per-Acquisition.
Keep reading to learn more and see if this is something that might be worth trying for your business.
An Affiliate Marketing Program is when a business rewards affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.
There are four elements in every program:
- Merchant or retailer: Seller of a product / service provider.
- Publisher or affiliate: it could be a website, blog, magazine, etc.
- Customer or End User
- Network / Offers for affiliates
How it works?
You create a partnership with an affiliate who will advertise your products and/or services. Interested internet users will interact with the advertising and go to your website. When a user purchases a product or service, you will pay the affiliate for helping you increase your online sales.
To track the performance of an ad, a pixel or small piece of graphic is placed into the link.
Image Source: https://www.inkthemes.com/affiliate-marketing/
Types of programs: B2C and B2B
Companies like Groupon, Hotels.com, GoCompare.com work based on the B2C Affiliate Marketing program model.
On the B2B side, Here are a few examples of affiliate network websites. Look for options in your country/region.
- Top CPS Affiliate Networks in Canada, http://affiliatemarketingcanada.com/top-cps-affiliate-networks-in-canada/
- Canadian Affiliate Marketing Networks, http://www.amwso.net/international-affiliate-networks/canadian-affiliate-marketing-networks/
- Top 10 Earning Affiliate Programs for March, 2015, canadiansinternet.com/top-10-earning-affiliate-programs-for-march-2015/
- The Top 20 Affiliate Networks 2015, http://mthink.com/top-20-affiliate-networks-2015/
- Affiliate Marketers Name Top 10 Affiliate Networks (Canada), http://canadiansinternet.com/affiliate-marketers-name-top-10-affiliate-networks/
- http://www.maxbounty.com/ (Canada)
Some tips before starting on affiliate marketing:
- When searching for affiliate partners consider the following aspects: payment structure, type of audience and its size, traffic volume, traffic quality and ads performance.
- Research reviews about the affiliates you’re interested in partnering with.
- Start small and monitor the performance of your campaigns.
- Evaluate the affiliate’s customer service and trustworthiness.
- Trust is the base of any program; there must be honesty between the merchant and the affiliate to achieve a long-term relationship.
Affiliate Marketing Association of Canada, http://affiliatemarketingcanada.com/
Shaw Academy, Diploma in Digital Marketing