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    What is affiliate marketing about?

     

    Affiliate Marketing is basically an online relationship between these 3 parties:

     

    What is affiliate marketing

     

    MERCHANT : OWNER OF THE PRODUCT OR SERVICE

    The Merchant is the company who owns the products or services.  They would have set up an affiliate program and are willing to pay generous commissions to other people who help sell and promote their products or services. The affiliate programs set up by the Merchant usually include proving the affiliate with all the tools they need, that being:

    • Creative – unique links and HTML code to create banner or text ads that can be incorporated in the affiliate’s website or blog.
    • Tracking – Using your unique links there is often a reporting tool to show affiliates the kind of traffic and sales they are generating.
    • Payment Platform – Sales and leads are monitored on the Merchant’s payment platform and you get to choose your threshold of when you want to be paid, and where.

    The Merchant is also referred to as the Advertiser.

     

    AFFILIATE : COMPANY OR INDIVIDUAL SELLING MERCHANT’S PRODUCTS / SERVICES

    An affiliate is a company or an individual who promotes the merchant’s products or services on their websites or blogs using unique links and banner adverts provided by the Merchant.  In exchange for referrals or sales, affiliates earn generous commissions.

    The Affiliate is also referred to as the Publisher.

     

    CUSTOMER : THE INDIVIDUAL WHO PURCHASES PRODUCTS FROM YOUR LINK

    The customer is an individual you have attracted to your website with your compelling content.  They see the adverts or content and then take action by clicking on your unique affiliate link which results in a monetized conversion.

     

    Please feel free to ask me anything, drop a comment or make a suggestion, I am open to all.  Alternatively, you can connect with me at laurie@affiliatenewbiesmarketingguide.com.

     

    6 Comments

    1. JeffWA

      Very informative article which showed the 3 important components, (individuals) who are all involved in affiliate marketing.

      For online business owners of course it would be their role as the “affiliate” in being able to have a great website and promote the product(s) through highly relevant content which would be the key factor for them to earn $$ in their business.

      Jeff

      • Laurie

        Thanks for your comments Jeff – in all my business endeavours I believe it is all to do with ARM (anticipated, relevant and meaningful) communications and content. I try as far as possible to meet this ideal.

    2. Cathy

      Hey Laurie, I like the affiliate marketing model because the cost of starting up is very minimal.

      I have a question in regards to applying for affiliate programs. Most merchants request to see our website first. But without being affiliated to any product, how would you know what type of content to write about?

      Hope you can shed some light on this. Thanks!

      • Laurie

        Hi Cathy – thanks for your comments and yes the affiliate marketing model does have its benefits although will require commitment and work. I think the niche you are in and doing keyword research should determine what type of content to write about before deciding on which products to be affiliated with. I believe focus should be on writing content that is unique, is aimed at helping, informing or entertaining your readers – then the rest is easy to find.

    3. Warren

      Hey, Foxy. I’ve seen a lot of reviews and articles on the ins and outs of affiliate marketing, but I’ve never seen in put into totally simple, believable and understandable terms. The Merchant – Affiliate – Customer is spot on. It’s really important to understand the links and posting requirements of your Affiliate merchant-partner. I don’t know how many times I have passed on a merchant because I couldn’t figure out how to get the links posted. Well done.

      • Laurie

        Thanks Warren – yes, for the newbie, Affiliate Marketing needs to be made simple because it really is quite simple when explained properly

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