Ultimate guide to affiliate marketing

What is affiliate marketing? Affiliate Marketing is a $ 12 billion industry worldwide, of which $ 6. 8 billion is from the United States. Even in an opaque era, affiliate marketing is still a to p-class performance. Affiliate marketing has recently been ranked into the top of high demand skills*for marketing representatives. The reason is [...] ...

15 minutes Ryan Council Product Marketing Manager Completion time: 15 minutes

What is affiliate marketing and how to get started?

Affiliate Marketing is an industry of $ 12 billion in the world, of which $ 6. 8 billion is from the United States. Affiliate Marketing is still a to p-class channel, even in an opaque era. For marketers, affiliate marketing has recently been ranked high in high demand skills*. This is because high profits can be expected for both advertisers and affiliates.

For brands, affiliate marketing can achieve up to more than 30 % of total revenue, and the average ROI is a surprising thing of $ 15 per spending. On the other hand, affiliate issuers who have advantageous partnerships can earn up to $ 10, 000*per day. Alternatively, you can diversify and enhance profits through a partnership with the brand.

Whether you are an advertiser or an affiliate beginner or an affiliate, the definitive guide of this affiliate marketing will lead you to the right way. This guide gradually explains the basics of utilizing affiliate channels.

In this guide you’ll discover answers to questions like:

1. What is affiliate marketing?
   • Affiliate marketing mechanism
   • The mechanism of the Affiliate Committee
   • Affiliate payment mechanism
   • Why use affiliate marketing?
   • What is an affiliate partnership?
   • What kind of affiliate partners are there?
2. Understand the mechanism of the affiliate program
   • What is an affiliate program?
   • Affiliate tracking mechanism
3. Affiliate Marketing Platform Solutions
   • How to choose affiliate platform suitable for brands
4. How to start affiliate
   • Three things to ask yourself before participating in the affiliate network

1. What is affiliate marketing?

Affiliate Marketing is a performanc e-type marketing channel. The brand pays for affiliate publishers by promoting traffic and sales on our websites.

First, let's look at the breakdowns of the four major parties related to affiliate marketing:

1. Affiliat e-A person or company paid to click, lead, or sell for advertisers. Also called publisher or affiliate.
2. Advertise r-A company that pays a commission to affiliates who guide the traffic to the website. It is also called a company, a marketing person, or a brand.
3. Consume r-End users or potential customers who clicked the links of affiliates. Consumers visit the advertiser's website and apply for or purchase products and services.
4. Affiliate Platfor m-Technology Solutions connecting advertisers and affiliates. Usually provide tracking, contract, report, and payment functions.

Affiliates usually own websites and social properties. Advertise advertiser brands through tracking links.

An affiliate link is usually included within a:

• Blog post
• coupon
• Product review
• Banner advertisement
• Product comparison portal
• Email campaign
• Social media channel

How does affiliate marketing work?

It may be difficult to understand the concept of affiliate marketing.

When affiliate (partner or public) participates in a brand affiliate program, the brand provides affiliate access to its own tracking link. Affiliates use these links to advertise the brand. Affiliates can add links to websites, social profiles, e-mail campaigns, and other promotion opportunities.

Consumers click on these links and purchase them directly to the brand website. Affiliate receives a commission from the brand if a consumer is purchased.

Example an affiliate is a VLOGGER (video blogger) that hosts sneakers review series. Consumers clicked on Vlogger's recommendation link and purchased sneakers. VLOGGER secures sales of sneakers and receives commissions in return.

Ready to start your partnership program?

Consult a partnership expert team

How do affiliate commissions work?

The subsidiary marketing is operated by a performanc e-based model. Affiliates acquire commissions when a specific "conversion event" occurs. Conversion events are actions that users take on the spot, such as selling products, subscribing to a newsletter, and registering an account.

The result reward type affiliate model generally uses the following standard payment system:

• Cost per action (CPA)
• Reed unit price (CPL)
• Click unit price (CPC)

Ultimate guide to affiliate marketing ebook

Learn all of affiliate marketing, how to maintain affiliate partnerships, and all between them

How do affiliate payments work?

Previously, affiliates were paid only when the last click of sales, that is, a click to guarantee sales, occurred. Currently, many companies have adjusted their payments and decide which action to pay for. Currently, the commission can be set to another target:

• First click on the website
• Conversion Path Enrollment
• Monthly Performance Thresholds
• Customer Status
• Promotions
• Specific SKUs

This flexibility and differentiation in payments is good news for affiliates.

Brands have come to understand the role affiliates play in the complete consumer journey. As a result, affiliates can now be rewarded for their role in driving a customer towards a sale: awareness, engagement, first click, last click, etc.

Why use affiliate marketing?

Affiliate marketing is popular because it’s reliable and affordable for all parties involved. And more and more brands are realizing the untapped potential of affiliate relationships. Today, more than 15% of all digital media revenue* comes from affiliate partnerships. On average, highly engaged partnership programs contribute 28% of a brand’s total revenue*.

Affiliate marketing is a flexible channel that helps brands reach new audiences, increase revenue, and scale effectively. It’s a low-risk, high-growth channel because brands only pay when they see results. An example of affiliate marketing success is meal delivery service Purple Carrot. The company launched a brand new affiliate program and saw a 68% increase in orders and a 30% increase in ad revenue in the first few months*.

Brands only pay when they see results, making this channel low-risk and high-growth potential.

According to the Association Marketing Performance Study, the affiliate channel had a 12:1 return on ad spend (ROAS) (excluding financial institutions). You can do so by investing in IMPACT's Partnership Cloud™.

Affiliates, on the other hand, can partner with brands that align with their values. All the affiliate needs to do is share the link on the brand's website and social channels. In return, the affiliate enjoys the potential for unapplied profits on the traffic they send to the brand's site. There is no risk to affiliates, as joining a brand's affiliate program is usually free.

What are affiliate partnerships?

The affiliate marketing channel has been around since the late 1990s, but it has undergone significant changes in recent years. Strategies that worked just a few years ago are no longer ideal. However, affiliate partnerships offer a viable new way of thinking about your relationships with affiliate publishers.

Today's affiliate partnership fosters lon g-term affiliate relationships, manages the entire life cycle from recruitment to transfer, and provides important insights. With the affiliate partnership approach, advertisers can better understand their performance. The brand can also analyze customer value and see a complete trip of consumers.

See the e-book "Affiliate Marketing is dead*" for the history and evolution of the affiliate channel history and strategy.

What are the different types of affiliate marketing partners?

Affiliate partners reach the audience in different ways, such as blog posts, coupon sites, and email campaigns. Each type affiliate is involved with customers on a different stage of consumer journey. For example, social media influencers may increase their awareness at the first stage of consumer journey, and coupons may help them sell at the last stage.

Here are the most common types of affiliate partnerships:

• Content Partner: Content Partners will create content such as blog posts and product guides to convey brand products and services to consumers.
• Coupons and offers: Affiliates advertise the brand by providing discount code and emphasizing promotion offers.
• Affiliate Tools: A tool that functions as a su b-affiliate network and provides a method for affiliates to easily monetize content (for example, Viglink, Skimlinks).
• Mobile app collaboration: Partners use their own apps to lead the traffic to brand websites/ apps.
• Marketer Email: Partners are involved with e-mail viewers for brand promotion.
• Social media influencers and communities: Use social media platforms such as Instagram, Facebook, YouTube, etc. to the audience about the brand.
• Directory: These partners have a website that leads to data, normal products and prices comparison.
• Royality, reward, refund: These partners return a part of affiliate rewards to consumers in the form of cashback and royalty rewards.
• Collaboration with search advertisements: Searc h-linked advertising partners: searc h-linked advertising partners bid for searc h-linked advertising keywords and induce traffic to brand websites.
• Pay Par Call Partner: These partners ask a consumer to call the brand. The brand tracks the call and consequently gives a credit to the partner.
• Toolbar: The toolbar partner has a browser extension that consumers can apply promotion code or automatically check cashback.
• Blogger: Video bloggers advertise the brand on video blogs. For example, there are products, etc., and video reviews of products.
• B2B: Brands can partner with other brands and connect strategic brand partnerships.

2. Understanding how an affiliate marketing program works

It's a good idea to learn how affiliate programs work, whether you launch an affiliate program or register for an affiliate program. Let's explain the basics.

What is an affiliate program?

Affiliate programs are processes and systems for brands to manage affiliate marketing relationships. The brand creates and manages programs that affiliate can participate. The purpose is to support the relationship between brands and affiliates. This includes integration (recruitment), contracts, payments, and opportunities. Each affiliate program has its own terms.

An affiliate program includes three parties:

1. Affiliate
2. Brand or business
3. Software (SaaS) solution as a partner network solution / service.

Advertisers can use SaaS solutions to manage affiliates and affiliate networks. This will be explained in detail later.

The best way to explain how the affiliate program works is to analyze affiliate journey and see the route to payment.

The road to payout

How does affiliate tracking work?

The advertiser provides affiliate access to trucking links to track clicks. Some affiliate programs can customize the appearance of the link. Many brands also create a specific landing page on the site that can be linked by affiliates.

To track a specific conversion event, the brand can use one of the following tracking methods:

• JavaScript ta g-the most common tracking method. JavaScript tags get a variety of data points and enhance reports and attractions. The JavaScript tag can track clicks, conversions, and sites in real time.

• Pixel Imag e-This is a not very powerful tracking method used to monitor clicks and conversions. Rea l-time tracking is possible with pixel images, but data points are reduced.

• The application programming interface (API) call, which is also known as a monitoring between API Call and server, sends conversion data to SaaS platforms and partner networks via the API call of the web service. The API call can be operated in real time or delay interval without a cookie in operation. This is the most available technique that is currently available in the future*.

• Another version of FTP monitorin g-between server monitoring. In this method, download or transfer monitoring data using the FTP server. The advertiser creates a ". csv" file that contains all conversions executed on the site and sends it to Impact via FTP.

These are all good monitoring methods to use today. But be aware that Google has indicated its intention to remove third-party cookies entirely*. To prepare for this change and future-proof your affiliate program, APIs remain the most reliable tracking method. APIs do not rely on third-party cookies and allow brands to override browser policies.

Advertisers can communicate with technology platforms through APIs. Because APIs do not rely on browsers as middlemen, they can share less data. API tracking also improves performance (the ability to render user activity across the entire consumer journey).

Ready to start your partnership program?

Consult a partnership expert team

3. Affiliate marketing platforms and networks

Every affiliate program needs the right technology behind it. If you want to roll out an affiliate program, you have two main options:

1. Affiliate networks

Networks give advertisers access to a large group of affiliates. It's easy to find relevant affiliates and they're easy to integrate. Affiliates are easy to find. Networks often offer a combination of services.

2. Software solutions

SaaS solutions and collaboration platforms give brands flexibility and control, allowing them to collaborate with whomever they want, not just publishers on their network. SaaS platforms help brands automate program management across the entire collaboration lifecycle: discovery, recruiting, contracting, payments, tracking, royalties, protection, monitoring, and optimization.

How to choose the right affiliate platform for your brand

All successful partner programs use a partner platform to manage their programs. The most common partner platforms are SaaS solutions or partner networks*. The table below provides a breakdown of the differences between these platform types. Whatever solution you choose, it should ideally provide automated management throughout the entire affiliate lifecycle*.

SaaS Solutions	Affiliate Network Solutions
Discovery and Recruitment	Find and attract high-value partners. SaaS enables differentiation and drives growth. Brands can bring in a variety of affiliates outside of their network, even those outside of their competitors' reach.	Easy plug-and-play access to a large group of affiliates that drive traffic, but advertisers can't access affiliates outside of your network.
Contracts & Payments	Custom payments and rewards that drive value at any point in the conversion pipeline.	Simple payments and contracts that reward affiliates through commissions. Usually based on the outcome of the last click.
Customer Experience/User Control	Direct access to affiliates gives you control over the customer experience. You can also collect detailed feedback on engagement.	Your brand is a grade that is deducted from publishers and affiliates who drive traffic. This makes it hard to track consumer behavior.
Communication and Engagement	Engage affiliate partners at scale with automated messages. Affiliates can receive customized messages when they hit a milestone or make their first sale.	Work with popular, high-profile affiliates, but keep in mind that engagement outside of your network is difficult. Also, affiliates are not exclusive, so it is possible to work with competitors.
Lifecycle Management	Streamlined workflows make your job easier. You can recruit, onboard, and manage each affiliate on the same platform.	Account managers manage the workflow with standard filters. This can include inactive or duplicate affiliate list copy along the way.
Performance and Reporting	Direct access to performance metrics and clear, actionable insights. You also have access to multiple touchpoints in your conversion pipeline.	Standard reports are available upon request or on a monthly or quarterly basis. Collaboration and data translation require the support of your account manager.
Security and Fraud Detection	Your data is your most powerful affiliate fraud detection tool*. Look for a SAAS partnership solution that identifies and excludes fraudulent affiliates.	Affiliate networks are now working harder against fraud, but the process is often manual. An "easy win" commission structure can also encourage unethical groups* (they will find loopholes that undermine important fraud prevention tools and processes).

How to get started with affiliate marketing as an affiliate

It's not just brands that can benefit from affiliate marketing technology. There are many great affiliate programs out there that networks and affiliate platforms can join too. But before you take that step, it’s worth considering your own goals and values ​​as an affiliate marketer.

Things to consider when becoming an affiliate:

• What products or services do you want to promote?
• Do you want to promote a small niche brand or a popular brand?
• Are there specific brands you’d like to partner with?
• Are there affiliates you should emulate?
• Do you have the traffic, loyalty, and appeal to attract brands to partner with you?
• Do you want to support only sustainable or ethical brands?

If you don’t have a lot of website traffic yet, work on that first. Create regular content or articles to drive engagement and also learn from the affiliates you are pursuing. You can find many tutorials and resources online, including tips* on generating quality traffic to your website. If you feel like you have an audience, a commitment and are ready to dive in, the next step is research!

3 Things to ask yourself before joining an affiliate network

Before you jump in and sign up with every network or platform you can find, ask yourself:

1. Which payment model would I find the most beneficial?

Are your followers more likely to buy on the first click or will they come back and buy later? Are you looking for a basic commission structure through an affiliate network? Or a custom payment where you pay for the first click or awareness through a platform? (We’ve talked a bit about the types of affiliate payment models before).

2. Does my audience match the type of products or services I plan to promote?

If your fanbase is Gen Z, you won’t get much affiliation with brands that are over 50. Consider brands that are looking to reach your audience. If you don’t know who your audience is, find out. Use your website and social media analytics to generate reports. This will help you build your partner proposition and approach the right brands.

3. Do I want lucrative deals, or simply anything that sticks?

Large affiliate networks offer a lot of opportunities, but also a lot of competitors. If you can prove your worth as an affiliate, it is worth joining the affiliate program of your favorite brand. Affiliate platforms allow you to have direct contact with brands and exclusive partnerships.

If you don't know where to start, check out this eBook: It details how to get started with impactful affiliate marketing.

When you're ready to register, join the Impact Partnership Network.

What’s next?

Become an affiliate marketing expert in your organization. Join the Provis Experience Academy program for free and elevate your career. Learn more about certifications and courses here.

Become an affiliate marketing expert in your organization. Join the Provis Experience Academy program for free and elevate your career. Learn more about certifications and courses here.