What is affiliate marketing? Practical guide + 10 tips to follow!

What is Affiliate Marketing?

Affiliate marketing definition

Affiliate marketing is an online marketing strategy that businesses use to promote their products and services. Therefore, companies can seek affiliates (business partners) to place advertisements on their websites, blogs, etc., in the form of sponsored articles , links or banner advertisements, for example. 🗣️

Affiliates are actually an intermediary medium, as the advertising is done by the seller. Affiliates are paid in different ways. Affiliate programs can be created in collaboration with the seller himself and with partners of his choice. Alternatively, the Affiliate Network offers sellers a wide range of affiliates. These networks often help partners create campaigns and pay commissions. 💲

The amount of the commissions is agreed in advance between the seller and his affiliate. Usually affiliates are responsible for the affiliate portal and manage the advertising campaign. Affiliate marketing can be implemented online or offline. 💻

How it works ? Partnership between seller and affiliate

Affiliate partnership works in the following way: the seller, also known as the advertiser, is one of the two parties in the affiliate marketing partnership program and embodies the cooperation between the seller and the network partner. The supplier provides the program and promotional material . As an online retailer, it works with website providers, also known as affiliates, who use their website as advertising media such as banners. 🤗

Through this collaboration, sellers know that their products will be introduced to a wider audience of potential customers and their reach will be expanded. To make the partnership as effective as possible, sellers should choose a popular advertising partner. 😀 In addition, the target group profits must be similar in order to achieve high advertising effectiveness. Affiliates are sellers' counterparts and distribution partners for campaigns that benefit sellers. Affiliates are paid for the advertising space they provide to sellers. 👏

Different commission models

There are many models for paying commissions to affiliates like “cost per click” (“ Pay Per Click ”), “cost per lead” (“ Pay Per Lead ”), “cost per sale” (“ Pay Per Sale ”) ), “cost per link” (“ Pay Per Link ”), “cost per views” (“ Pay Per View ”), etc, etc. ✍️

The notion of payments is often replaced by “costs” (or “ Pay Per …” in English). 🤓 The most commonly used models are:

Cost per click (CPC): With pay per click, the seller does not pay a flat amount to the affiliate, but pays a fixed amount when the user clicks on the ad. Therefore, payments are only made when the user clicks on the ad and is redirected to the advertiser's website. In this model, the business only has to pay if the user actually recognizes the ad. 🤓

Cost per lead (CPP): With this method, payments are calculated using pay per lead. Each prospect represents the contact you have won. Leads can also be obtained through catalog requests and newsletter subscriptions. 📄

Cost Per Sale (CPV): This model calculates payouts based on the number of times a customer clicks on a banner to buy something. This system is also called unit price, but there is a charge for each order. 🛍️

Affiliation is a well-known way to monetize your website and generate passive income . It's very easy to set up, but still requires a lot of thought in advance. In fact, your commission depends on the selected products/services and your ability to promote them. 🧲

It depends on the field of activity and commercial performance! 📈 Whether you are down, up or average, there is always a solution you need to develop. Here's a quick guide to affiliate basics to help you get started with partnerships and convert with your campaigns.

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