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glossary:a:affiliate_program
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Affiliate Program

An affiliate program is an internet based distribution solution, which connects advertisers (merchants) and website owners (affiliates or publisher). The special on this model is that the billing is performance-based. Affiliate Networks that host the affiliate programs track the clicks, leads or sales and offer the platform where the publisher gets payed.

History

There is a popular story that Affiliate Marketing developed 1997. A woman was asking Amazon founder Jeff Bezos if she can market books in return for a commission on his site.The idea was born and is until now one of the milestones of the success of Amazon. The number of partner rose very quickly. In June 1998 the site already accounted 60.000 and today there are about 900.000 partner. The idea meanwhile is copied several times.1) The big secret of the Internet is that the adult sites came up with many of the best (and worst) marketing concepts that are used in the mainstream. Cybererotica was among the early innovators in affiliate marketing with a cost per click program.2)

Affiliate Marketing

It is said to be the best online marketing tool. Why? The major advantage of affiliate marketing is that it only costs the advertisers once the service has been delivered or the click has been made. There are many affiliate marketing models out in the web. So it is necessary to create a programm that sticks out. The following points will give a rough guideline on major topics to focus on.3)

  • Niche market. It is not possbile to sell everything to everyone. This is the quickest way to fail in the adventure.
  • Locate niche partners. When the niche market is claimed partners have to be found. Websites or contacts are needed that provide the advertiser with the relevant focus group or segment. The goal is to find partners that have already built traffic and would benefit from the affiliate offer.
  • Promotional Material. The advertiser should provide the affiliate partners with creative and promotional material. The less work they have to do and the more conversions they see the more likely they are to promote the products or services.
  • Take care of the partners. Communicating with the partners like sending out updates on product additions or changes and giving them tips and advise on how to be successful in marketing the own products is very important.
  • A successful affiliate marketing program takes time to build, but with a bit of effort it has the ability to increase Internet sales noticeably.4)

Compensation Models

Example

If the user clicks on the text “Amazon” or on the banner on the right he is re-directed to Amazon by the following link: WWW.amazon.de/exec/obidos/ASIN/388264396X/ironmanmanage-21/

The Affiliate is receiving a commission of the merchant (Amazon) on every purchase the customer does once clicking on the link.


Further Readings

1) “Praxiswissen-Online-Marketing”, Gabler Verlag, 2. Auflage April 2009
2) Collins, Shawn (2000-11-10). History of Affiliate Marketing. ClickZ Network, 10 November 2000. Retrieved on 2007-10-15
3) Kester, Manuel. Affiliate-marketing Für B2c-Online-Shops: Grundlagen, Methoden Und Ausprägungen in Der Praxis. Norderstedt: Books on Demand, 2006. Print.
4) Lammenett, Erwin. Praxiswissen Online-Marketing: Affiliate- Und E-Mail-Marketing, Keyword-Advertising, Online-Werbung, Suchmaschinen-Optimierung. Wiesbaden: Gabler, 2006. Print.
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glossary/a/affiliate_program.txt · Last modified: 2012/01/04 07:45 (external edit)