What is Affiliate Marketing?

Today, Affiliate marketing has become a popular way for websites to generate revenue. Also known as ‘link referral marketing’ or ‘affiliate spam’, Affiliate marketing is a strategy where an advertiser pays someone else to market and advertise their products on other websites. 

The affiliate then gets rewarded after the advertiser makes a sale - this process is called ‘referral marketing’ and the affiliate who is referred by the advertiser is known as an affiliate. 

In brief, affiliate marketing is an advertising model in which a company takes the aid of third-party partners for promoting its products/services and hence generating business.

Affiliate marketing has many advantages over other advertising strategies, such as banner ads and pay-per-click search optimization. 

Affiliates don’t need to pay for advertising space or hire ad designers or programmers to design, optimize and publish ads. They simply have to have their own website that offers content that can be shared via social media, blogs and newsgroups like email newsletters. Therefore, anyone with a blog or site can start engaging in affiliate marketing without paying costly fees or hiring contractors.

 

What is the origin of Affiliate Marketing?

Affiliate marketing is a method of generating revenue through sales commissions generated from sales leads provided by affiliates. 
There are several myths surrounding the origins of affiliate marketing, one being that it was first introduced by a woman named Martha Ray, who was a door-to-door cosmetics salesperson. 

However, the actual concept of affiliate marketing dates back to the 1930s. According to a research report published by Sliwinski, et Al, in May 2016, the growth of affiliate marketing was driven by the increasing number of eCommerce websites and the growth of the number of internet users. The authors also note that the rapid growth of affiliate marketing is also due to the fact that it’s a low cost marketing strategy.

How does Affiliate Marketing work?

When a visitor to an affiliate’s website clicks on an affiliate product, an email is sent to the affiliate email address (the ‘source’) with the visitor’s email address (the ‘destination’). The affiliate is then paid the difference between the bid price of the product and the amount the visitor pays for the product. An affiliate’s job is to drive traffic to the merchant’s website, either through paid advertising or by using a website that has a high level of ‘bounce’ or ‘exit’ rates. The affiliate then sends the lead to the merchant.

Benefits of Affiliate Marketing for Publishers

Affiliates don’t need to pay for advertising space, or hire ad designers or programmers to design, optimize and publish ads. They simply have to have their own website that offers content that can be shared via social media, blogs and newsgroups (such as email newsletters). Therefore, anyone with a blog or site can start engaging in affiliate marketing without paying costly fees or hiring contractors. 

The revenue from affiliate marketing comes from the sales generated by the traffic the affiliate sends to the merchant’s website. Therefore, the commission rate varies depending on how many sales the affiliate drives. 

To attract more traffic and leads, affiliates can use “inherited traffic” – 

- They can write sponsored posts on other blogs, 
- Put advertisements on their own website, and engage in “linking” posting articles with hyperlinks to their own sites. 

Another way affiliates can attract more traffic is by giving away free products to generate “freebie” leads. The free products can be either printed materials or ebooks. The freebie leads are usually discarded by merchants and are not counted as sales. 

Affiliates can also create “reviews” for products on their own websites and blogs. These reviews can be either positive or negative and help increase the authority of the website.

Disadvantages of Affiliate Marketing for Publishers

There is a risk that the traffic brought by affiliates is not high-quality traffic, or that the affiliate does not make a sale from the traffic. In such cases, publishers might not receive their commission from the affiliate. 

To attract more traffic to their websites, affiliates need to spend time creating content, writing posts and engaging in link-building activities. This is a time-consuming process and might not be feasible for all businesses. 

Another disadvantage of affiliate marketing is that it can be very ‘opportunistic’. An affiliate’s main job is to drive traffic to the merchant’s website. Therefore, the value of the traffic the affiliate sends must be lower than the bid price of the product the merchant is offering. This means the affiliate could easily lose money if the product they are promoting is not selling well.

Endnote

Affiliate marketing has become a popular way for websites to generate revenue. Affiliate marketing is also known as ‘link referral marketing’ or ‘affiliate spam’. It is a strategy where an advertiser pays someone else to market and advertise their products on other websites. 

The affiliate then gets rewarded after the advertiser makes a sale - this process is called ‘referral marketing’ and the affiliate who is referred by the advertiser is known as an affiliate. Affiliates don’t need to pay for advertising space, or hire ad designers or programmers to design, optimize and publish ads. 

They simply have to have their own website that offers content that can be shared via social media, blogs and newsgroups (such as email newsletters). Therefore, anyone with a blog or site can start engaging in affiliate marketing without paying costly fees or hiring contractors.


Affiliate Marketing Courses in Nagpur

Snable Pvt Ltd, a SaaS-based organization in Nagpur, offers you a holistic course in Digital Marketing which focuses on making you digitally capable to meet the needs of the target market. 
It provides various digital platforms to promote the given products or services.
 
Our modules are packed with a full arsenal of digital marketing skills that not only includes Affiliate Marketing training, but also benefits you with other skills like -

- Social Media Marketing 
- Search Engine Optimization 
- Content Marketing
- Email Marketing
- Paid Marketing

On top of this,Snable also provides you with Digital Marketing Certifications to enrich your career options. Sign up now to know more about the course and the registration process. Visit www.snable.in
 

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