“Affiliate marketing has made businesses millions and general people millionaires.”
So wrote Bo Bennett, the founder and SEO of eBookIt.com and president of Archieboy
Holdings. He created one of the first web-based affiliate programs. The way affiliate
marketing works is simple: it’s a performance-based advertising channel in which a
business pays a commission for a conversion to one or more affiliates.
The industry involves four players: brand, network, affiliate, and the customer. Not
all of these players are always involved at the same time; some brands have an
affiliate program and they manage the relationship with affiliates directly. In
other cases, networks have offers for the affiliates to choose from and they also
take care of payments.
While this may sound simple, the successful execution can be a big challenge even
for the most seasoned marketer. If done without a strategy, affiliate marketing can
be a huge waste of time and money. Specifically, in this post I will address the
Can affiliate marketing work for your company in 2016? Most often, the answer will
be “yes.” Within affiliate marketing, there are several different types of companies,
all with different goals that have managed to make affiliate marketing work.
What gets in the way of sales? Don’t be too excited about affiliates promising 100,000
impressions. There are a few obstacles between a promise and an actual sale.
Before you start an affiliate program, it’s good to analyze what your competitors are
doing. Understand that the competitive environment sets the standards for your
commissions, commercial arrangements, and objectives.
Having done your competitor analysis, you are in a position to look at setting up your
program. The first step in setting up an affiliate program is selecting how you are
going to track the sales and who you are going to work with. Shall I work with a
network or run the program in-house?
The objectives for an affiliate program are normally based on your overall marketing
strategy, as affiliate marketing is just one tool to earn your business goals.
How do you define the right commission? Since they make the affiliate world go round,
it’s imperative to make them right.