Affiliate Marketing – What is Affiliate Marketing?
LAffiliate marketing is a type of marketing that consists of offering a commission to the advertiser for each conversion or derived sale.
In this case, the payment is made only for achieving an objective and not for the entire campaign, that is, a payment is made by CPA (Cost per action or Cost per Acquisition).
Advertisers or publishers are responsible for promoting the products or services of another company by publishing ads or sponsored articles on their websites, email marketing campaigns and/or other advertising networks in order to carry out conversions and obtain remuneration. change of each one, which can be fixed, variable or a percentage of the total sale or subscription.
Advantages of affiliate marketing
Affiliate marketing has become popular in recent years because it offers various advantages for both companies and advertisers:
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Payment by results: Companies only pay advertisers based on the results obtained.
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Variety of entry channels: There are various channels to promote products or services through affiliates.
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Variety of advertising formats: Likewise, the advertising formats that can be used are very varied.
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Large number of publishers willing to advertise a product or service: Encourage websites and influencers to promote products or services to obtain commissions.
Cons of affiliate marketing
Affiliate marketing can carry a number of risks:
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Illegal practices: There are various practices through which affiliate links can be stolen or falsified in order to obtain commissions without conversions having been carried out.
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Misleading advertising: “Loss of control” can lead to poor advertising practices in order to obtain traffic or conversions.
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Loss of interest if commissions are not relevant: The arrival of new competitors that offer higher commissions can cause our income to drop immediately.
What are affiliate networks?
They are networks that bring companies and advertisers into contact and serve as intermediaries in measuring data and payments between them.
Types of affiliate marketing
Within affiliate marketing there is a wide variety of possibilities to carry it out. Among others, we can find the following:
Websites / Blogs
Websites and blogs insert advertising on their pages with which they will earn income for each conversion. It can be advertising through banners, text links in the content, etc.
Paid searches
Advertisers can use ads on search networks, such as Google Ads, to drive traffic to the pages they are advertising to earn profits for each conversion they achieve through this traffic.
Social networks
They can also use their social networks to drive traffic to their pages or those of the company and receive a payment for each conversion derived from these visits.
Co-registration
This is a registration in another database that is carried out at the same time that the user inserts their data into a specific one. In this way, the database can be grown more quickly. Even so, the user must grant express consent to subscribe to that specific mailing list, and comply with the European Data Protection Regulation.
Price comparators
Websites or applications that offer various options for a product or service, pointing out differences in price or features, obtaining a commission when a user makes a conversion.
Attribution models in affiliate marketing
The most common is the “last click”, in which the conversion is attributed to the place where the user made the last click prior to the purchase or subscription.
Others such as “first click” or linear attribution (an average of all the channels the user has gone through before converting).
Niches and microniches in affiliate marketing
The search for niches or micro-niches in affiliate marketing is a widely used technique that consists of searching for products or services related to a specific topic, with a high conversion rate and relatively little competition.