80% of all global brands are currently using Affiliate Marketing for promoting their products. The technique accounts for 15% of all digital media industry’s revenue, leading to 40% of marketing professionals quoting affiliate marketing as a most desired digital skill.
Affiliate Marketing is an essential subject for all digital marketers as well as brands to be aware about. Technically speaking, Affiliate Marketing is a technique where other publishers and websites will promote your business. An affiliate is rewarded every time a visitor, customer or a sale for your business is generated through an advertisement on their website.
There are many different ways in which compensation is provided, but the concept remains consistent—you pay them for generating business for you. If a viewer is at the affiliate’s website, and the affiliate doesn’t quite have what they’re looking for, they can easily click over to your website. It’s an increasingly popular technique for those seeking to maximize they’re staying power on the web.
Here is how it works:
- A website displays banner ads or buttons promoting products or services from other retailers or companies.
- The website then receives a commission if site visitors perform a desired action, ranging from a simple click-through to the retailer’s website, to lead generation, to making a purchase. This process can be tracked through affiliate tracking.
- The retailer pays a fee for the click, which is collected by the affiliate network company.
“It’s an increasingly popular technique for those seeking to maximize they’re staying power on the web.”
Affiliate Marketing Examples:
- Product review sites
- Shopping comparison sites
- Coupon sites
Affiliates can come in all shapes and sizes. Some provide web services designed solely for making efficient referrals or affiliate links to other websites (such as comparison shopping websites).
Others provide valuable content and perspective for those who are evaluating existing services (like product review sites).
Ways to do Affiliate Tracking:
There are a handful of key performance indicators that are very useful to do affiliate tracking including the following:
- Number of Leads: perhaps a referred visitor contacted the advertiser in some way, such as a request for a quote or for more product information.
- Number of Conversions: these are the completion of a goal that you define on your website. A conversion could be a trial signup or, of course, a sale.
- Conversion Rate: the percentage of referrals sent to your site who ultimately complete the conversion goals that you have defined.
- Average CPA (cost per acquisition): the amount of money paid to obtain a desired outcome (usually a sale).
Learning Affiliate Marketing
If you are brand new to affiliate marketing, or would like to enhance your knowledge on the subject, betterU offers online courses in Affiliate Marketing such as Affiliate Marketing– Make Passive Income Online and ClickBank Success: Affiliate Marketing Without A Website, from Udemy. These courses will help you learn the fundamentals of affiliate marketing as well as the details of ClickBank, one of the leading affiliate marketing channels.