Affiliate marketing is a technique that involves inter-brand cooperation in promoting a good or service. In one of its simplest forms, affiliate marketing consists of one brand, company or individual promoting a product (likely in exchange for some sort of commission) on behalf of another brand, company or individual. Its intended function is to expose one brand to another’s customer base, and is typically done when there is some sort of similarity between the two brands that might draw common interest. The rise of the internet has enabled a diverse range of opportunity in affiliate marketing, largely by way of data tracking (such as web cookies) and analytics.
Ebates is a fan favorite. Even though they have been around for years, a lot of people still aren't using it. And it's easy money. Who doesn't love that? Because it crosses so many industries, it can be an easy program to promote. Even if you aren't in the save money/make money industries, if you are talking about your organizing your office or trip to Jamaica it's an easy mention. “Don't forget to stop by Ebates first to get 8% back on your The Container Store purchase” or “Get 12% back this week when you book your Hilton stay through Ebates.” Bonus points: Ebates gives people an extra $10 when they sign up and make their first purchase. And you get $15! (Plus bonuses.)
Affiliate marketing has lots of business benefits but it’s also important to be aware of potential drawbacks too. From an advertiser perspective, it can be one of the most effective ways to drive traffic to your website. It’s a well-known concept that people need to know, like, and trust you before they’ll buy from you. In the case of affiliate marketing, they just need to know, like, and trust your affiliate. You benefit from their credibility and existing relationship with their audience. So, instead of having to go out and build something from scratch, you get a head start on sales.
Many affiliate programs will often run promotions with good discounts or giveaways that might be attractive to your audience. For example, if you're an Amazon Associate and the site have a big Holiday Sale, it would be the perfect opportunity for you to promote discounts to your website visitors. This is a great way to promote your offers while also providing good value to your audience.
While your site is still new, it's a good idea to start capitalizing on someone else's audience. Continue focusing on building your own content, but also considering writing content for a few big, high-traffic blogs that are relevant for your niche. By writing content for a bigger site, you are able to get in front of another audience and showcase your expertise on a particular topic. This will eventually lead to more traffic to your site, as well.
It’s also an incredibly low-risk marketing strategy with a high ROI. Most other promotional channels require some kind of payment upfront and there’s a chance that it may not work. In these cases, you’ve lost some precious marketing budget and not gained anything in return. However, with affiliate marketing, you’re only charged once a sale is confirmed. You can define the payment terms as 60 or 90 days to allow for refunds or processing issues. An affiliate agency will generally charge a nominal amount to cover overhead and then leverage their relationships to build your affiliate network. This format protects both parties cash flow and ensures you’ve already received the money from the customer before you have to pay the affiliate. It’s a performance-based method that rewards top-performing affiliates who refer genuine customers.
First of all, it’s a low-risk and inexpensive business. The bare minimum for getting started as an affiliate is having a blog, a website, or even just a social media profile. This makes it a very cost-effective method for earning money. It also means you don’t have to commit a lot of cash up-front since you can start small and grow your marketing efforts over time.
The person who manages an affiliate program for a merchant. They are responsible for affiliate recruitment, ensuring that the affiliates are using above board promotional methods and for increasing affiliate sales for the merchant. They also act as the liaison between the affiliate and the merchant. The affiliate manager may work directly for the merchant or be an independent service provider contracted by the merchant to run their affiliate program. Also referred to as an OPM.
Giving away a free informational product such as an e-book, an email series or a mini-course is a popular tactic many affiliate marketers use. Usually, your readers will have to provide their email addresses to receive the product from you. You can then use this to sell to them via email marketing. Additionally, an informational product can generate interest in the actual product you're trying to sell. If your product is popular enough and brings enough traffic to your site, you could also monetize the traffic in other ways, such as AdSense.
“When we came to Brick Marketing initially, we had a small subset of challenges we didn’t have the bandwidth to tackle in house. Our idea was simply to send out the work and be done with it. A one-shot deal. What we found mid way into the first project, was that Nick Stamoulis and Brick Marketing had a depth of understanding and approach to solving our Search Engine Marketing problems that we had not considered; solutions that dramatically improved our search engine ranking position on terms and improved the overall size of our index listing (by more than 25% in the first two months). In short order we expanded our horizons and enlisted his talents to take on refining and improving ROI on our rather expensive Pay Per Click campaigns, as well as having him consult on microsite projects and blogs. Nick Stamoulis of Brick Marketing helped us understand what works and why, and helping us maintain our dominant position in the SERPs, despite the markets constant resetting and ever-changing drama. I could not have gotten through this year without Brick Marketing’s assistance and advice. I couldn’t give a stronger recommendation; they are simply great!”
Always disclose your affiliations. Your readers will appreciate your honesty and will feel better about contributing to your earnings. If they sense that you are being less than honest about your affiliations, they are savvy enough to bypass your link and go directly to the vendor just to avoid giving you referral credit (even though the price is the same it's just something people do; strange but true!).
For example, if I talk about how cool a product is, and then you find out that I’m an affiliate for them, wouldn’t you as a conscientious observer become skeptical as to whether my information is biased, if perhaps I’m only saying how cool something is because I can get paid for it? Wouldn’t that make you question my integrity with other things I say as well?
Since the emergence of affiliate marketing, there has been little control over affiliate activity. Unscrupulous affiliates have used spam, false advertising, forced clicks (to get tracking cookies set on users' computers), adware, and other methods to drive traffic to their sponsors. Although many affiliate programs have terms of service that contain rules against spam, this marketing method has historically proven to attract abuse from spammers.
Affiliate marketing has grown quickly since its inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in 2006 was £2.16 billion in the United Kingdom alone. The estimates were £1.35 billion in sales in 2005. MarketingSherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs.
Many voucher code web sites use a click-to-reveal format, which requires the web site user to click to reveal the voucher code. The action of clicking places the cookie on the website visitor's computer. In the United Kingdom, the IAB Affiliate Council under chair Matt Bailey announced regulations that stated that "Affiliates must not use a mechanism whereby users are encouraged to click to interact with content where it is unclear or confusing what the outcome will be."
Affiliates are most successful when the products they promote match the interests of their followers and subscribers. In addition, many successful affiliate marketers advise recommending and promoting only products that the affiliate is personally familiar with. That’s because familiarity with the product, program, or service helps build trust between the affiliate and end-user.