How to affiliate marketing can be a confusing and sometimes maddening subject. On one hand, it can be easy to get wrapped up in all the technical jargon. On the other hand, those unfamiliar with the jargon may not be aware of the marketing definition that is used. This article attempts to explain affiliate marketing in simple terms. The marketing definition is broken down into three factors – cost per action (CPA), revenue share, and cost per sale (CPS).
Affiliate marketing is a kind of performance-based marketing where a company compensates one or more affiliates per visitor or client brought about by the affiliate’s marketing efforts. Each visitor or client is a potential customer. The compensation involved is dependent upon the action that the affiliate has taken. Typical actions included clicking an advertisement, filling out a form, or purchasing a product or service.
Many companies offer affiliate marketing programs in an effort to reach a broader audience. They want to draw people who may not be familiar with their products and services. These companies offer attractive commissions and incentives to attract these customers. In exchange for these commissions, the affiliates are expected to help increase the profitability of the sponsor’s product or service. The earning potential for this enterprise is high. However, it does take a bit of effort to earn high commissions.
Many beginners become discouraged when they do not see immediate results from their marketing campaigns. This is not unusual. There are many components to the successful marketing of a product or service. The product or service needs to be appealing, the marketing campaign needs to be effective, and the affiliate marketer needs to have the right combination of skills, information, and resources. In order to succeed, these elements must be in place.
One way to help achieve the above objectives is through research and analysis of available advertising models. Good research will identify which opportunities to investigate. It will provide a solid foundation for evaluating the different options, and will provide a clear path for the affiliate marketer to choose the most likely options. A common mistake among beginners in affiliate marketing is to select one advertising model and jump into it without adequate research. A more informed affiliate marketing program can bring more advantages.
Another approach that some businesses take when selecting an advertising model is to simply mimic another company that has already developed a highly successful program. This may seem like an obvious solution. However, because of the wide range of possible competitors, this approach could end up having a negative effect on the level of success an affiliate marketing business model can earn. A better choice would be to develop a unique or particular business model that is capable of earning high commissions but that is also different enough from the competition to avoid being copied.
An important consideration that should be part of any good research procedure when it comes to researching a potential advertising model is the relatedness of the products and services offered by the two companies involved in the joint venture. If the products or services offered by each company do not have much in common with one another, the marketing opportunity may have limited appeal. Some marketers become involved in affiliate marketing programs where there are a wide variety of products and services that can be easily related to one another.
Buzzfeed is one such website that is frequently used by affiliates. Buzzfeed offers a simple way for marketers to add product reviews and buzz to their websites. When a visitor views a review page on a site like buzzfeed, the visitor is taken to another site where the advertiser or sponsor can place a short blurb about their product. The buzzfeed system works by providing a link that takes the reader directly to the advertiser’s site. Affiliates who use buzzfeed effectively can significantly increase their websites’ traffic and commissions by including buzz feeds to their marketing messages.