Affiliate Marketing

Affiliate marketing is one of the important types of Internet Marketing which is adopted by different types of companies, affiliate networks, affiliate management companies, and in-house affiliate managers, specialized third party vendors, and various types of affiliates/publishers and individuals to popularize their website services or product sale by the affiliate’s marketing efforts.

What is Affiliate Marketing?

Affiliate marketing is an online advertising in which advertisers (online merchants that selling products or services) pay publishers ( indivisuals Website that promoting the products or services of an advertiser) only for results, such as a visitor making a purchase or filling out a form, rather than paying simply to reach a particular audience. In Affiliate marketing, advertisers only pay to publishers when the new client introduction results in a sale or a lead, making it a low-risk, high-reward environment for both parties. Some popular Affiliate marketing network are showning below :

http://www.linkshare.com/
http://www.cj.com

Advertising.com : http://uk.advertising.com/
Affiliate Future : http://www.lammo.net/u/1
Afform : http://www.afform.co.uk/
Afilinet : http://www.affili.net/
Altogether Ads : http://www.lammo.net/u/3
Buy.at : http://buy.at/
Cleverat : http://www.lammo.net/u/4
DGM Affiliates : http://www.dgmaffiliates.com/
Existem Affiliate Management: http://www.existem-am.com/
Online Media Group : http://www.lammo.net/u/5
Paid on Results : http://www.lammo.net/u/6
Profitistic : http://www.lammo.net/u/7
Tradedoubler : http://www.lammo.net/u/8
TradeTracker : http://tc.tradetracker.net/?c=1065&m=0&a=38077&r=lammo
Trienta Affiliates : http://www.lammo.net/u/9

the advertisers and publishers can resigter here. The advertisers first set the payment rates for their services or product they are selling ( or how much they will pay after the desired results achieved through publisher); and publishers apply to advertisers program, and start to give services after approval by a advertisers.

The transaction is tracked and recorded by these affiliate marketing network sites.They handles all of the collection and processing required to ensure fair and timely commission payment for the publisher, and all of the administration and verification necessary to ensure quality sales and leads for the advertiser.

Affiliate marketing also called performance marketing in which employees are typically being compensated on every sale. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding targeted baselines.
Affiliate Marketing Types :

Affiliate marketing includes organic search engine optimization, paid search engine marketing, e-mail marketing and in some sense display advertising (Text as well as Banner advertising). Its also includes reviews and commenting on a product or services offered by a company. Blogs creation of same theme in which company dealing is latest trend to getting popularity of company services and products. Fresh content is major key for blogs popularity. Affiliate links work best in the context of the information contained within the website itself. If a website contains information pertaining to sports, an affiliate link leading to a sporting goods website may work well within the context of the articles and information about sports. The goal is to publish quality information within the website and provide context-oriented links to related merchant’s websites.

Affiliate Marketing Advantages :

Affiliate marketing increase website traffic through one more traffic website. The high traffic website offers a link to other website that would take the visitor directly here. The concept of revenue sharing — paying commission for referred business — predates affiliate marketing and the Internet. in November 1994, CDNOW launched this affiliate advertising technique.

Affiliate programs use revenue sharing or cost per sale (CPS) around 70%, 25% as a cost per action (CPA), and the remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM) as a compensation method. Traditional affiliate marketing programs such as CPC/PPC and CPM/CPT are using less than of one penchant. However,
These compensation methods are using heavily in display advertising and paid search.

In CPM, publishers make the advertising on his website and make a commission whereas in PPc publishers generate revenue when A visitor must not only be made aware of the advertisement, but must also click on the advertisement

In early days CPC was common affiliate marketing program but has dismissed due to fraud click.Google Ad Sense (Contextual advertising programs) are not considered in the statistic pertaining to diminished use of CPC, as it is uncertain if contextual advertising can be considered affiliate marketing.

CPM/CPC versus CPA/CPS (Performance Marketing):

In CPM or CPC the publisher earned his commission as visitor click ,the publisher is not concerned about a visitor being a member of the audience that the advertiser tries to attract and is able to convert. CPM has full risk and loss (if the visitor can not be converted) to the advertiser.

In CPA and CPS the risk and loss is fully shared between the affiliate and the advertiser. Referred visitors do more than visit the advertiser’s website before the affiliate receives commission. To increase the chance of a conversion, publisher sends the advertiser to the best-targeted traffic as possible.

Affiliate Marketing Network – Lammo.net is one of the most popular Affiliate Marketing Blogs in the UK, with a reputation for “telling it like it is”. You`ll find reviews, comment and opinions on Affiliate Marketing programs, networks and the Industry as a whole.

Advertiser perspective: Implementation Options:

Merchants can run their own (i.e., in-house) affiliate programs or can use third-party services to get traffic or sales that are referred from affiliates. There are different types of affiliate management solutions: standalone software or hosted services, Merchants can choose from these solutions.

Types of Affiliate Websites :

Affiliate websites are often categorized by merchants (i.e., advertisers) and affiliate networks.

1. Search affiliates website (use pay per click search engines to promote the advertisers’ offers).

2. Coupon websites that focus on sales promotions

3. Content and product review websites

4. Shopping directories that list merchants by categories without providing coupons, price comparisons, or other features based on information that changes frequently.

5. Cost per action (CPA) networks (i.e., top-tier affiliates) that expose offers from the advertiser with which they are affiliated to their own network of affiliates

6. Comparison shopping websites

7. Loyalty websites (providing a reward system for purchases via points back, cash back, or charitable donations).

8. Personal websites (This type of website was the reason for the birth of affiliate marketing).

9. Weblogs and website syndication feeds (blogs).

There are three primary ways to locate affiliate programs for a target website:

1. Affiliate programs directories,

2. Large affiliate networks that provide the platform for dozens or even hundreds of advertisers, and

3. The target website itself. (Websites that offer an affiliate program often have a link titled “affiliate program,” “affiliates,” “referral program,” or “webmasters” — usually in the footer or “About” section of the website.)

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