Affiliates Marketing

What is Affiliate Program & How does it work?

Affiliates Marketing: What is Affiliate Program & How does it work

In recent years, affiliate marketing is getting much popular basically in e-commerce businesses. It has become one of the most important online marketing strategies when promoting a product or service. This is also known as performance marketing. Because on behalf of the advertiser, this is a great tool for monetizing a blog or web page.

The Interactive Advertising Bureau (IAB) established this section of marketing in the mid-1990s. In that time Amazon founder Jeff Bezos created a technology that added webpages to other sellers who were not engaged in marketing their books directly on Amazon. Besides, it was not until 2014 that the term became famous and works were created around this new marketing strategy.

What's affiliate marketing?

Affiliate marketing is an online marketing strategy based on generating results. Any of these online stores or advertisers promote their products or services through advertisements on websites or blogs. It processes promotions through its affiliates by an affiliate program.

In this way, the advertising agency is able to expand its presence and reach a much wider audience than just its website.

In most cases the 4 affiliate marketing agents have these 4 main agents:

  • Advertiser: To promote the product or service that the brand provides.
  • Affiliate or publisher: Websites or blogs that promote the services of advertisers.
  • Affiliate Program: It is a network through which advertisers and affiliates join. The latter provides advertising space in exchange for a commission established by the advertising agency.
  • Final consumer: The person who purchases the service. The link or banner is always on the advertiser's page before going to the authorized organization's website.

How does an affiliate program work?

Now that you are clear about affiliate marketing, do you want to know if an affiliate program works technically?

Affiliate marketing uses cookies to perfectly track information from banners and links to allowed company websites. This way, an affiliate program is able to save all of the viewer's browser information (date, time, viewing content ...) when a user clicks or clicks on a specific ad.

This way, every time a user clicks on a link or an authorized banner to make a purchase (or any other agreed-upon activity) on the advertiser's website, cookies are able to track all of this information. Because the authorized program can detect the actions performed. And then it approves the approved commission.

Affiliate marketing: win-win model?

A lot of times we hear that affiliate marketing is where both parties win: both the advertiser and the affiliate.

The advertiser is able to expand his brand, reach more people, and increase his sales. Also, it provides every activity (registration, sale, subscription ...) performed. As part of this, the authorized advertiser is responsible for promoting the product. And in return, each time the user performs a specific action on his website receives commissions.

But what are all these benefits? Is it always a strategy that can benefit both advertisers and affiliates? Let's look at the main advantages and disadvantages of affiliate marketing.

Advantages and disadvantages of affiliate marketing for affiliates:

Both from the point of view of the affiliates, there are some advantages and disadvantages. You should take into account these when joining a program of these characteristics.

Advantages for affiliates

  • If you are an affiliate you don't have to have a product inventory, offer support, or after-sales service. You only deal with the promotion of the advertiser's products.
  • Minimal risk. By not having to invest in the stock, the risk in implementing such a strategy is very small.
  • You can join various affiliate programs or different advertisers. Analyze which programs offer the best commissions or which products you think you can get a higher conversion when promoting them and join them. If at any time the conditions change, you can unsubscribe and consider other options.

Disadvantages for affiliates

  • It is about promoting a product. So if you don't want to lose the trust of your customers, you need to watch your strategy and analyze the pros and cons of the services you are going to advertise. It is important that your recommendations are credible and real if you want to win conversions.
  • If you have a blog, it is necessary to create specialized content when making recommendations for products or services. If you want to achieve good results, it is not enough to just include a banner or an advertisement on your website.
  • Commissions are only a small part of the price of the product you recommend.

Advantages and disadvantages of affiliate marketing for advertisers

So, if you are the advertiser and you want to expand your brand, there are also some advantages and disadvantages. You should weigh before starting with a strategy of this type:

Advantages for advertisers

  • It is a good way to increase the audience you are targeting by paying only for the results obtained.
  • It does not require a large investment. Although some affiliate programs do require a small fee when you sign up, it is generally not a big outlay for your eCommerce. Also, you only pay commissions when the action is completed. If the results are not positive, you do not have to pay your affiliates or publishers.
  • The final consumer makes the purchase in your eCommerce, so they become your customer directly. It will be registered in your database and you will be able to carry out loyalty actions or recurring sales through a good email marketing strategy.

Disadvantages for advertisers

  • Not knowing in depth the activity or the affiliate's website can in some cases damage the reputation or brand image of the advertising company.
  • You have no control over your affiliates. At any time, one of your best publishers may decide to leave your program if the conditions do not interest them or they have a better offer.
  • Affiliates are not exclusive. This means that an affiliate may be recommending your brand in a post, and at the same time recommending your competitors as well. This usually happens when an affiliate creates a post like "The best Excel online courses for 2020".

Now that you know what affiliate marketing is and how an affiliate program works. Also, you have known the advantages of this branch of online marketing from both the advertiser and the affiliate point of view. Do you want to start with such a strategy on your website?

At JOCIAL you can start your affiliate marketing strategy with the top business organization. Not an only affiliate, but you can also start with different marketing strategies like influencer marketing, Social Media Marketing, and so on. So, if you like these services and want to recommend more, you can do this by contacting us. We are waiting for you with big open arms! You are always welcome to the leading influencer marketing platform. Here you can expand your marketing thoughts with the best skills and marketing campaigns. Join with Jocial NOW!

Author
Isabelle Evans