Affiliate Programs – What is it?

Affiliate programs are nothing more than affiliate marketing. It is an efficiency channel based on the relationship: seller (advertiser) – partner (publisher / affiliate). The specificity of this channel means that it is not a direct marketing technique. Closer to the model of employing independent marketers, who – motivated by a commission system – take the most effective actions to attract the largest number of customers performing the desired actions.

Participants of partner programs

Before you implement affiliate marketing, you should know the essence of its functioning. In this case, four “links” play an important role.

Seller (advertiser)
The salesperson is the main element in affiliate marketing – it is he who “launches” the affiliate program, wanting to promote his products and acquire customers in order to achieve his business goals.

Partner (publisher)
The partner has an advertising space that can be used to promote specific products / services. Any publisher or social media users who, as part of the affiliate program, intend to present the seller’s offer can become a publisher.

User
The user is simply a potential customer who clicks on a special affiliate link. As a result, he is redirected to the advertiser’s website and makes a purchase or performs any other desired action there.

Affiliate Network
An affiliate network is a platform that provides technology that allows collaboration between the seller and the partner. Its role is also to control the correctness of cooperation and optimization of activities carried out by advertisers and publishers.

Affiliate programs – types

All affiliate programs operate on similar principles. However, their types may be different, taking into account, for example, how advertisers are billed with publishers and the affiliate network. So let’s explore the available options to choose the most favorable and best suited to your needs

Pay per sale
Pay per sale (PPS) is a method of accounting for participants of affiliate programs, which consists in granting a specific amount on sales. It can also be a percentage of the amount of the final purchase made by the user. Accounting in the PPS model is the most popular in partner programs. Due to the fact that they are characterized by a relatively low conversion, the paid commissions are quite high – often up to 50% (in the case of services, software).

Pay per lead
Pay per lead (PPL) means the specific amount paid for each specific action taken by the user. In this case, it does not have to be only a customer’s purchase. Acquiring leads may include, among others to sign up for the mailing list, fill out the contact form. This type of affiliate program allows advertisers to measure the performance of specific ads. By calculating the average income in relation to the leads obtained, it can estimate the amount of profits made.

Pay per click
Pay per click (PPC) is a method of accounting for affiliate programs, the essence of which is to pay a specific amount for each click on an ad – similar to Google Ads. The number of products sold does not matter. Of the available types of affiliate programs, settlement in the PPC model enjoys the least popularity.

Affiliate programs are mutual benefits?

Affiliate programs are gaining popularity year by year. According to the latest Paraphrase-Online.com report, total investment in affiliate marketing in Europe has exceeded EUR 12 trillion. Although it is primarily popular among top advertisers, it really benefits every seller. This is due to the simple fact – affiliate programs are a model based on high performance and profitability. The biggest advantage of affiliate marketing are mutual benefits – especially when settling in the PPS model.

The advertiser is sure that the partner will take the most effective actions translating into increased sales of products. The publisher is highly motivated because his dedication depends on how much he can earn. It can also use any marketing methods that are most effective in acquiring customers.

Low cost to the advertiser
Participation in the affiliate program requires advertisers to bear the costs. However, they are relatively low, taking into account the payment of commission only when, for example, there is a sale.

Attractive earnings for the publisher
In the case of affiliate programs settled on the basis of PPL or PPS, the publisher has a chance to earn well. Much, however, depends on his activities. The more thought-out the campaigns, the greater the chance for profit.

Affiliate marketing – where to start?

Are you a salesman and want to run affiliate marketing? You need to start by creating an affiliate program and then invite publishers, e.g. through an affiliate network. Are you the owner of an advertising space and want to start earning? Join selected partner programs to receive sales and lead generation commissions through properly conducted marketing activities.

What is affiliate marketing?

Affiliate marketing is the efficiency channel, which is based on the cooperation of the advertiser (seller) with a partner (affiliate) who assumes the role of an intermediary in the transaction. Such a division brings mutual benefits:

– the seller enjoys a greater range of his products and more sales,
– the partner receives remuneration – it is calculated adequately to the actions.

This specificity means that affiliate marketing is not a direct marketing technique. It looks more like the employment model of independent marketers, who – motivated by a commission remuneration system – take actions to attract potential customers and get them to perform a specific action.

From marketer to user

The affiliate marketing model consists of four key elements:

– a partner who also acts as a marketer,
– advertiser (seller),
– user,
– affiliate network settling transactions.

The operating principle of this type of business model boils down to the following steps:

– the seller delivers a specific creation,
– the affiliate network provides such creation, e.g. in the form of a banner,
– the partner places a banner on his website,
– the user clicks on the banner,
– thus visiting the seller’s website.

How does it look in practice?

Suppose an entrepreneur wants to sell a guide book. To increase sales reach, he cooperates with, for example, the owner of a website whose subject matter corresponds to the subject of the book. There he puts a banner advertising the book. Each click on the banner is noted by the affiliate network. If the user decides to buy, the entrepreneur transfers the commission of the affiliate network, which takes its part, and transfers the rest to the partner.

The invaluable role of the partner network

The affiliate network plays an important role in affiliate marketing. Its task is to collect on its website partner programs that publishers (partners) can join. In short, it allows you to establish a relationship between the seller and the partner.

Although each side of the transaction is important, affiliate networks are trying to maintain very good relationships with publishers. They are responsible for acquiring users, thanks to which the network receives its part of the commission for sales.

When a partner joins the partner network, they get access to active affiliate programs. After acceptance by the seller, he will be able to start activities aimed at acquiring users.

Forms of remuneration in affiliate marketing

Depending on the assumed goal, cooperation under the partner program can be accounted for in different ways.

– Pay Per Sale (PPS) – is a commission on sales, which includes a specific part of the revenue from the purchase.
– Pay Per Lead (PPL) – is a set amount paid for each specific user action, e.g. filling out a form, leaving an email address.
– Pay Per Click (PPC) – is a specific amount paid for each click on the ad.

They are also types of affiliate programs, among which PPS and PPL are the most popular. Due to the high probability of fraud, PPC is rarely carried out.

Affiliate marketing – how to reach the user?

When talking about affiliate marketing, it’s worth considering how to reach the user. There is no one specific technique to “entice” customers – it all depends on the individual actions taken by the partner. He must work out the right strategy himself – so that he brings the best results.

Advertising banners

Although advertising banners already have their splendor behind them, they are still considered a good way to attract users. A visually attractive advertisement with an encouraging slogan can lead to a click, as a result of which the user will go to the seller’s website and decide to buy or take any other desired action.

Offer rankings

Users are happy to seek advice on the best products. Partners use this to create ranking websites, e.g. personal accounts, cosmetics, insurance, etc. Based on specific parameters, they create product combinations, which can then be purchased by clicking the appropriate link.

Mailings

Mailings are also one of the forms used in affiliate marketing, which works similarly to banners. Due to the fact that the message comes to the person’s mailbox, there is a greater likelihood of clicking and moving to the seller’s website.

Why is it worth betting on affiliate marketing?

The essence of affiliate marketing meant that this form of cooperation between the seller and the partner brings mutual benefits.

– The publisher receives a commission for reaching the user and encouraging him to perform a specific action.
– The seller sees increasing sales.

In addition, the advantage of partner programs is the opportunity to promote the offer or increase brand awareness at low costs and low risk.

From the publisher’s point of view, the advantage is actually full freedom in terms of actions taken. The effect counts, so acquiring users can be done not only through banners, but also other methods considered by the publisher as the most effective.