Whether you’re thinking about signing up with a brand as an affiliate or have already done so, you’re likely to have lots of questions. To help you understand the affiliate landscape and how to be successful in it we’ve put together our affiliate marketing guide for beginners.
What is Affiliate Marketing?
“The process of directing a consumer to a brands product or service in exchange for a commission on the sale or action.”
Affiliate marketing is a form of online marketing based on performance where an advertiser (also known as a merchant) rewards affiliates for their marketing contribution towards sales (or an action), on a commission basis. Affiliates are most commonly rewarded with a percentage of the sale but it can also be a fixed amount, paid for each sale, blog post bonuses and product giveaways.
At the core of affiliate marketing is relationships. Key to the model is relationships between three parties, the advertiser, the affiliate (you) and the consumer.
How does affiliate marketing work?
Who are Affiliates?
Affiliates (also called publishers) can be individual bloggers and influencers right through to large publishing houses. Examples include:
- Content and blogging sites
- Coupon/Voucher sites
- Deal sites
- Loyalty/Reward sites
- Influencer networks
How do Affiliates get paid?
Affiliates only get paid when their promotional efforts result in a sale or action. Payments are commonly managed by a third-party network or technology solution. Common sale actions include:
- CPA/CPS: Cost per Action or Cost Per Sale
- CPC: Cost per Click
- CPL: Cost per Lead
- CPD: Cost per Download
What is a Cookie?
A cookie is a small piece of data that works with web browsers to store information including, user preference, login or registration information and shopping basket information. When a consumer visits your website, and clicks on your affiliate link/banner a cookie is placed on their computer or mobile device. The cookie is used to remember the link or advert that the consumer clicked on, to ensure you get rewarded for transactions and actions that your drive.
What brands should Affiliates partner with?
When choosing which brands to partner with make sure they are relevant to your site and your readers. For example, a beauty blog would suit beauty brands such as Estee Lauder, MAC and The Body Shop.
Stay tuned on our blog for our affiliate marketing Jargon Buster, going live next month!