Important terms that you need to know about Affiliate Marketing

What is Affiliate marketing?

Affiliate marketing has become a massive online industry over the past several years, emerging as both an effective way for marketers to sell their products and services and for publishers to monetize their audiences.

Affiliate marketing allows any online business to affiliate themselves with web site owners (known as affiliates or publishers) using affiliate programs. Affiliates make money by generating sales, leads and traffic for the Merchants business.

Merchants who sell services online or seek other affiliate business activity typically use one of the affiliate program commission payment models below:

Cost Per Sale (CPA)

A visitor referred by the Affiliate purchases services from the Merchant. This payment structure is referred to as - cost per sale or cost per acquisition (CPA).

Cost Per Lead (CPL)

A visitor referred by the Affiliate completes a form on the Merchants web site. This payment structure is referred to as - cost per lead (CPL).

Cost Per Click (CPC)

A visitor to the Affiliates web site clicks on a Merchant's banner and visits the Merchant's web site. This payment structure is referred to as - cost per click (CPC).

3A’s for Affiliate Marketing

At its heart, affiliate marketing is an online version of a sales structure that has been happening offline for decades. In its simplest form, it involves 3A’s:

1.     Affiliate

2.     Agency

3.     Advertiser

 

History of Affiliate Marketing

The first affiliate marketing programme: William J. Tobin conceived, implemented, and patented affiliate marketing and launched his program on the Prodigy network. He set-up the first affiliate programme for his company, PC Flowers & Gifts in 1989.

The second: In 1994, CDNOW launched the Buy Web program.

Amazon was one of the first to use affiliate marketing with the launch of its Associates Programme in 1996. This is considered a key milestone for the affiliate world as the programme attracted widespread, global interest and was widely perceived as a model for retailers looking to implement their own.

The rest of the story: 1998 saw the launch of the first affiliate networks – Commission Junction and Clickbank. These networks made affiliate marketing a lot more accessible to online retailers smaller than Amazon, by offering payment solutions and facilitating exchanges between merchants and affiliates.

Soon after, in 2000, the United States’ Federal Trade Commission published guidelines for the sector, which helped cement its legitimacy in the online marketing world.

In 2008, more legislation was introduced across the US (such as the Affiliate Nexus Tax and new disclosure guidelines) to further regulate the field.

Affiliate Marketing Scenario in India

An affiliate network is a way of expansion in the internet.

In the current scenario, Affiliates contribute to around 15% of the sales happening on online retail sites in India. Affiliate Marketing in India has now reached a point where it’s reached some level of maturity and is being considered as a serious sales channel for ecommerce startups and even established businesses.

It’ll be interesting to see how the landscape evolves with the rise in usage of smart phones for browsing, and innovative tracking technology.

 

Top Affiliate Marketing Networks in the World

 

An affiliate network acts as an intermediary between publishers (affiliate marketers) who sell products and services and the merchants who create those products and services and their affiliate programs.

With a wide variety of businesses who work direct with affiliates, most affiliate marketers will use an affiliate marketing network to search for offers for their blogs. Some of the most popular affiliate marketing platforms:

RakutenLinkShare

Rakuten LinkShare is one of the oldest affiliate marketing networks; it is now a fair amount smaller than some of the bigger players in the affiliate industry.

CJ Affiliate

CJ Affiliate is one of the biggest affiliate platforms online; if you have worked in the affiliate marketing space for any amount of time, you’ve probably come across them. Just about every major merchant has their offers listed on CJ Affiliate (formerly Commission Junction), making it as close to a one-stop shop as it gets in the affiliate industry.

Amazon Associates

Amazon.com needs no introduction. It is the largest Internet-based retailer in the United States. Its affiliate network, called Amazon Associates, allows you to tap into over a million products to advertise to your customers. Amazon has the most intuitive and easy-to-use technology of any affiliate program.

Clickbank

Clickbank is huge. And it’s been in the game for over 17 years. ClickBank’s focus is digital information products. It is one of the largest online retailers.

ShareASale

ShareASale is another of the largest affiliate marketing programs out there; the platform has about 3,800 merchants listed. ShareASale has been in business for 15 years, exclusively as an affiliate marketing network. Their technology receives accolades for speed, efficiency, and accuracy – and their reputation as a fair and honest business is well known within the industry.

eBay

Many marketers don’t even know that eBay has an affiliate network. eBay has now been online for over 20 years. The ebay Partner Network provides first class tools, tracking, and reporting.

 

Want to be an Expert in Affiliate Marketing?

Affiliate Marketing is about building and maintaining relationships between affiliates, retailers and networks. To become an expert in Affiliate Marketing you need to improve your skills in Affiliate. To enhance your skills you need a good online marketing institute.

Here are few well known Institutes that provide Digital marketing Course:

Delhi School of internet Marketing (DSIM ): Delhi School of internet Marketing (DSIM ) Advance Digital Marketing course give leverage to learn Affiliate Marketing and Digital Marketing as well. It is one of the best digital marketing institute in Delhi.

The reviews can be check out on the following links: DSIM reviews

 

DigiPerform : Offers trainings for Affiliate  in individual as well as full Digital Marketing course to individuals & teams through its live classroom and online delivery. The institute has got a rating of 5.4 on a rating of 10. Till now, it claims to train 1000+ trainees.

The reviews can be check out on the following links: DigiPerform reviews

 

 

Digital Vidya: Digital Vidya is one among leading Digital Marketing training institute. Since January 2010, they claim to have trained 5000+ professionals and students. Digital Vidya offers courses in Affiliate as well as full training program in digital marketing (CDMM). The institute offers online training and has received a rating of 8 out of 10.

The reviews can be check out on the following links: Digital Vidya reviews