Affiliate marketing emerged in the mid-1990s at one of today's most popular multinationals: Amazon. Thanks to it, affiliate programs or affilate marketing have gained many followers and today it is one of the most effective digital strategies and, therefore, makes it easier to achieve success.
Affiliate programs or affiliate marketing are a monetization tool and a marketing strategy at the same time. They are based on payment for results and act as a channel through which large or small-scale brands promote their products and services after agreeing on a price with those who help them in that promotion.
Three well-differentiated actors can be identified in this model:
- An advertiser , that is, the owner of a brand, service or product.
- An affiliate , that is, the administrator of a fan page, a website or a blog that is affiliated with a product or brand to promote it and obtain a commission for those sales.
- A platform in which the supply of advertising space impacts the demand.
- Affiliate marketing emerged in 1996 thanks to the founder of Amazon, Jeff Bezos, who designed a way to link other vendors' websites so that they would receive a commission for each book sold on Amazon and referred through the other merchant's website.
There are different types of affiliate programs , for example, those websites that deal with a specific theme and are interesting for merchants who sell services or products related to the content of that page.
These web pages usually advertise the products of those stores to their readers and, if they get a click, sale or registration, they get a commission.
When a person joins an affiliate program, the merchant assigns that person a unique code with which they can refer products to their followers. This code will be used to track the conversions generated by that Associate or Affiliate ID.
In other words, the company gives a link to a user with which they can refer customers on their website and, every time someone uses that link to purchase any product, the company will know where that customer comes from and to whom they should deliver the information. relevant commission.
In order to obtain a good result, it is necessary to know the target audience perfectly and define the site's niche . Thus, when any type of promotion is going to be carried out, it will be certain that the followers of that site will value it positively and in this way the probability of conversion will be high.
The two factors mentioned, knowing the target and defining the niche, are crucial for advertisers to choose or accept their affiliates. They typically won't want to invest in a site that isn't related to their target audience or doesn't offer quality content.
Before joining an affiliate program, you also need to make sure that what you are going to recommend is something really good , because otherwise the followers will not be satisfied and that will reduce the reputation and reliability.
In short, affiliate marketing programs allow a person to generate a commission by promoting the products of others.
A blogger can have a community or tribe that follows and supports him in all the content he shares. Since your readers trust you, when you make a promotion about a service or product, it will be very easy for them to be interested in it. If this interest materializes into a purchase, the blogger will earn a sales commission.
For all these reasons, it can be said that it is a win-win strategy , since, on the one hand, sales are generated without their own products or services and, on the other, customers are obtained without making marketing efforts. The only 'effort' is to pay a commission for each sale. In short, the affiliate marketing strategy suits the company, the blogger and the customers.
Different affiliate programs can be managed with different remunerations, although the most common are the following:
- Pay per click : on this occasion, a payment is received based on the number of views that are redirected to the sponsor's link or website and that have made any type of click from the link or hyperlink that has been placed on a fanpage , website or blog. Affiliates provide qualified traffic to merchants through phrases or words in major search engines, such as Yahoo or Google.
- Cash back : companies that use cash back have a registry of users. They share with them the commissions with redeemable points, money or discounts. These users make purchases through a platform and receive a percentage in return.
- Payment per form : a commission can be obtained if the people who have been referred complete a form with their data on the destination website.
- Pay Per Conversion – Through this program, merchants pay a commission for a customer's sale of the product when the purchase process is completed after a referral.
- Co-registration databases : those users who are interested in the services or products of different companies can subscribe to the affiliate newsletters.
- Pages or websites : In this particular case, websites that deal with specific topics are interesting for merchants who sell services or products related in some way to that content. On these websites, the products of the stores are advertised and a commission is received for each click, registration or sale that has been achieved.
- Email marketing databases : another type of affiliate marketing consists of transferring the data of registered users who are interested in a subject related to the service or product offered by the merchant. It is used in conjunction with other types of affiliate programs. The most used commission is the one that corresponds to the cost per thousand impressions or CPM .
- Affiliate networks : in order to regulate the relationships that exist between merchants and advertisers, the so-called affiliate networks appear, whose greatest exponents are Tradedoubler and Zanox . These companies act as mediators between a large number of affiliates and advertisers, providing them with the tools to track sales directed from an affiliate's page, which will allow them to control transactions in such a way that there is security for both. parts.
A large number of merchants and advertisers are hosted on these platforms. Some of these are clothing stores, hotel chains or gourmet store accessories , among others.
Some stores use their own affiliate network where affiliates can sign up and track the results of the advertising they are providing on their website.
First of all, it should be noted that affiliate marketing does not require a large initial investment. When this strategy is used, the advertising company decides what its ideal advertising model is and, in case the affiliates accept it, they only pay the affiliate website based on the results that have been obtained. These results can be registrations, sales or contacts, among others.
Another advantage offered by affiliate programs is the possibility of reaching and impacting a greater number of users. On the Internet you can find a multitude of websites, pages and blogs that may be related to the scope of a company and provide a large number of potential customers.
When an affiliate marketing strategy is applied, both the promoting company and the website on which the ads are included benefit . The first, because he sees his sales increase, and the second because he receives a commission subject to such sales.
In addition, affiliate marketing can be applied in different media such as mobile phones and tablets.
The last advantage that should be noted is that any company can choose its affiliates , that is, they can select the web pages on which they are going to show their ads. You will be able to segment the audience, increase the ratio of clicks and visits and target the public that may interest you the most.
Affiliate marketing has three fundamental objectives for which any advertising company can use it. These goals are to expand your customer base and website traffic and to generate sales . In this way, if the affiliate extends the scope of its action to different social networks, it will be generating an opportunity with which it will obtain visibility, shares and quality traffic through this content.
Some bloggers use the affiliate marketing method to create content through product reviews and support their recommendations.