Uniting eCommerce and Affiliate Marketing: The Right Way To Develop?
Affiliate marketing is an area where an entrepreneur who wants to increase his sales meets a partner who has a large subscriber audience and who wants to monetize it. The first one gets the opportunity to attract a huge number of clients without making any effort. The second one gets the opportunity to make quick money due to his promotion opportunities.
In fact, affiliate marketing is a way of promoting and selling goods and services by attracting independent sellers who promote the product on the market for a commission. More precisely, within the framework of this scheme the partner receives his reward for any targeted action of the client. Targeted actions can be very different: a simple visit to the site, registration of a subscription, up to the purchase of goods.
In the affiliate marketing clients get to the customer’s site through various channels on the partner’s website: banner advertising, posts in social networks simple links and so on. At the same time, the affiliated partner in his work uses the whole arsenal of online marketing tools. It is thanks to effective toolkit that makes the partner so interesting to the customer, this is his valuable resource, which he can monetize in the framework of affiliate marketing. Here you can include email-mailing, SEO, sms-marketing and so on.
Specificity of affiliate marketing
This type of marketing has both advantages and disadvantages. However, it seems that there are more pluses. Let’s start with the cons. The main drawback is the risk of facing unfair partners. Moreover, deception is possible both on the part of affiliate, and on the part of the customer. The first can, for example, use prohibited methods to increase traffic. The second can break the agreement and not to pay the partner a reward. Therefore, in affiliate marketing it is important to learn how to choose partners.
However, if you succeed in this, you will very soon enjoy all the benefits of affiliate marketing.
For the customer, the benefit is the explosive growth in customer base – and, as a result, sales. At the same time, the customer does not make any effort. Partners receive quick money. They can skip the step of developing and creating a product or service. They take a ready-made solution, potentially interesting to the target audience, and promote it according to a well-established scheme. For partners this is a kind of training. Over time, they themselves can launch any product and quickly promote it to the market.
Types of affiliate programs
As already mentioned, in partner marketing a partner receives a reward for a certain client action. Affiliate programs vary depending on the type of action. The most difficult for the partner and the most desired by the advertiser scheme assumes that the partner receives money only if the customer makes a purchase.
On the contrary, the easiest option for a partner requires only to place on his website a certain advertising element. In this case, only ad serving is paid. There is an intermediate option – when the partner receives a reward, if the client clicks on the advertising element on the affiliate’s website. Pay per click is one of the most popular models in affiliate marketing.
4 participants in affiliate marketing
In fact, not three parties, but four can participate in affiliate marketing. The first is the creator of the product. The second is the partner who promotes the product and earns money on it. An example of a successful partner is any successful cashback service. Such companies earn on commission fees. They provide customers cashback for purchases in different stores, which are several percent lower than the commission itself. As a result, sellers and brands get customers, cashback service earns money on commissions, buyers receive cashback. Everyone is happy.
The third participant is a client who needs to effectively communicate the idea of purchasing a product or accomplishing another targeted action.
The affiliate network can become the fourth participant in the affiliate marketing. It is a service that unites the creators of products and partners. Such networks allow these parties to interact effectively, without even contacting each other.