Affiliate Marketing & Affiliate Introduction and Core Concept.
In this lesson, we will learn about affiliate marketing Introduction & Core concept. As you know, it is performance-based marketing, where we promote the merchant’s products or service and get compensated
- The annotations of qualified referrals.
- Payout reversals.
- Notations of locking periods.
So, you won’t get paid for branding in cost per sale context, you won’t get paid for valid referrals return orders, also you should not count commission.
Until it locks in your account and the advertisers with the merchant can no longer back from you reversing it, going to forward, keeps these Concepts in mind.
- It is not a “Channel”: for marketing, it is some may say or believe.
- A Marketing Context: the un-regarding principles.
- Performance-based remunerating model: principles which are performance-based compensation models.
- Works with Most Types of Online Marketing (Display, Contextual, Video, Social Media, email and so on).
The notion of Qualified Referral is central to affiliate marketing.
- It is Advertiser Who Predetermines what will constitute the Qualified Action which affiliates will get compensation.
- Affiliate Receives Compensation,n only Upon Meeting These Conditions.
- Importantly to understand the reversal of commissions happen and they may happen. In the following instances.
- Payment authorization failed: If the customer payment authorization failed.
- Or the customer plays Fraudulent sale.
- If the order was Returned order or unclaimed shipment.
- Repeated duplicate order canceled the order and all of these instances the merchant will reverse the affiliate transaction in most instances.
- Fraudulent Transaction from affiliate will get reverse.
- Test Transaction: will test if your links are working fine. Will be frequently reserving well.
- Self – Referral ( If Prohibited) by the merchant.
The merchants at another hand also through.
- Test transaction ad they will reverse commission.
- Order Nonfulfillment and Order Adjustment (Correction) will also call for payout reversals. Payout reversals are closely tied to notations to locking period.
- Most importantly, It is to understand what locking period and block dates are?
- This kind of marketing Commission Becomes Irreversible only once the lock date reaches.
- It is Advertiser that Predetermine this Date.
- Let’s see the two examples: of locking periods.
- We are now looking at affiliate refer transactions through the advertiser interface.
ShareASale affiliates network, this particular transaction for &290 91 cents referred an affiliate on the 15th march.
Locking Period Example.
The affiliate sees the same thing knows not to count, on the commission until. 20th April.
Advertise view (Share a sale).
For Example, custom Locking Period turns to overstock to the affiliate program.
You can see the below image as an example: overstock or odd.co has custom lock period action lock 60 days.
After that, the affiliate commission locks their accounts only 60 days after the transaction will be referred.
Understanding Affiliate Types.
However, We will study the different types and the marketing methods that they use.
But, when we come to affiliate types. We will look at ten types.
- This is the type of affiliate depends on content saturated websites.
- Self-authored or user-created content like forums.
They Monetize sites with affiliate links, Banners, widgets, text links, product links etc.
For example: let’s jump to the photography school website.
It is a niche content website, which monetizes through affiliate links.
Every post, you get the camera link through the affiliate link which will lead to us, Amazon store, and should sale happen it is digital photography school that will get affiliate commissions.
Type No. 2 Coupon Affiliate. (Coupon and Deals).
However, This type relies on human psychology of trying to find a product at a discounted price. If possible.
The classic example of would be a couponcabin.com.
If we go http://www.couponcabin.com and click the coupon tabs, we will see that they sort, coupon by the expiring by soon and by sale, free shipping, free biz.
Even printable and grocery coupons, this is a famous coupons affiliates website.
Type No. 3 Data Feed Affiliates.
The 3rd type of affiliates would be that employee’s data feeds, as well as comparison shopping engines.
The whole segment of affiliates it focuses on merchant product feeds, they work with them, putting the together useful website, like thefind.com for example:
If we go to thefind.com and search for any product, for example, I type here engagement ring it shows up engagement rings from the store, with its works.
Through affiliate programs, you will see that there are amazon.com and other jewelry on this page all of these be linked through affiliates links.
Type No. 4 Display Ads.
This type is most usable in types for promoting Advertisers. Using Display Advertising, display ads also frequency used by affiliates.
They would promote the advertisers placing affiliates links, banners, instead of regular display ads and rotations. This also would include re-targeting or example will come to bizsugar.com.
Here on this website, that you will see, plenty of banners, every one of these, on the particular page, is linked through the affiliates, link.
Type No. 5 Email Affiliates.
Email affiliates these would be the market via email and this would also include remarketing as in the case of upsellit.com.
Now I am here on that website, that the email remarketing sections whether to say email marketing solutions increase conversions, by allowing to business to collect leads from visitors.
The abandoned page the conversion process they collect email and then are able to re-market to these prospects.
Type No. 6 Loyalty and Incentives.
These affiliates would facilitate the desired and user actions by offering them and incentives say cash back, points, virtual currency, etc.
They will re-share at the part of payout, a part of payment received from the merchant there is the example of cash back comes from bigcrums.com.
See how it has been described processes in three steps, where you create an account when you shop through one of the links they provide and purchase get credit your background accounts.
You get the listed cashback rate famous cash back from the UK is topcashback.co.uk.
Type No. 7 the Mobile and Pay Per Call.
Affiliate focused on either mobile marketing or pay per call marketing a getting specifically. They frequently bridge the gap between online and offline.
Intertwine with location-based marketing.
Type No. 8 Search Engine Marketing.
SEO. PPC. Or Both.
They employee SEM to drive conversations to advertisers or examples: from imwave.com read from their website, they build and manage, and finds search marketing campaigns paid search campaigns and sells and leads.
To get tracked through the third party tracking system. As we know would be affiliate networks or any affiliate platform and thirdly client pays the sale and leads generated, by this page search affiliate.
Type No. 9 The Social Media Affiliates.
From forums, blogs, to leverage existing social networks, to creating social networks, these affiliates would use, social media to market the merchant that they promote.
Let’s us jump on skumatic.com.
The affiliates Powers of many Facebook stores, when you scroll down, you can see any website suppose I click on jewelry.com it will have opened.
The Facebook powers the jewelry they receive the commission on jewelry.com following something through the Facebook store.
Type No. 10 Video Affiliates.
The video affiliate is last in Types. they rely on video inventive. Which is known yield 29% higher dwell rate and 45% higher conversion rate?
These could be used through networks, like ShareASale or call video performance network that allows affiliates, to monetize videos, of tools like Vcubics our example from ShareASale network specific affiliates submit affiliate program from the affiliate network.
If we go to ShareASale clicking on links tabs, and selecting video pulling them affiliate submit videos.
We go to preview and get also HTML code, and why go and submit video my embed on the website by clicking on right click select and copy and paste.
It where you want to keep on your website, every time when the end user will click on it our cookies will get set, and should anyone buying affiliate pass and we get the commission.
Understanding Affiliate Platforms
We will look at different affiliate platforms, there are basically two types of affiliate platforms.
- Affiliate Networks.
- In-House Platforms.
Affiliate network or essentially mediator connecting affiliates with programs providing tracking, reporting, and maintenance services both to merchants meaning to those who under programming these platforms and to the affiliates.
In merchant’s relationships affiliates networks are also once who pay to affiliates, how to think you aggregated payments cross different programs streamlining.
The payments process for both parties involved here is the key affiliates networks that operating from the US now a day.
These are the most famous networks in Affiliate marketing that are used.
- Affiliate Window.
- CJ By Conversant is formally known as commission junctions.
- eBay Enterprise affiliate network.
- Rakuten LinkShare.
- Impact Radius.
- Horizon Group.
- Post Affiliate Pro.
- Proprietary solutions.
Should you prefer a network-based program over “indie”.
It depends, as I have mentioned earlier working with the merchant through affiliate networks is more convenient can especially beginning, it is more convenient usually the ability to aggregate payments across.
Affiliate programs also cross the board reporting is good to have if however than niche use to choose work in just if I joining In-house based affiliate programs defiantly go for it,
With joints like Amazon and eBay, reliability should not be a problem with small merchants take it easy before you one 100% certain you want burdened self.
For most affiliates, however, it does not either or question but “both…and …” situation is joining both networks and indies allow working with larger numbers of relevant merchants.
Understanding Affiliate Earnings.
Now let’s look Affiliate Earnings-related considerations we will look at these following questions.
- How much do affiliates make?
- How once can forecast future affiliate earnings?
- What About Passive Income?
In 2013 a famous Australian blogger, author, speaker, Darren Rose.
Who also knows as pro-blogger put together a very interesting post? Who was celebrating his 10 years with Amazon associates programs?
Which we know Amazon’s affiliate program and can create his ultimate guide making money with Amazon affiliate marketing program post.
Where he disclosed his earnings to US $, as an Amazon affiliate over the course of his 10 years with them.
In April 2013 he wrote that he estimated his amazon earnings since 2003, around the $40020 thousand-dollars mark. Although you can see the bulk of it has been in the last 5/6 years.
Income from Affiliate Marketing (you can see some following income examples).
- 9%- (Less Than $5.000).
- 8%- ($5.000 To $9-999).
- 1%- ($10.000 To $24.999).
- 2%- ($50.000 To $99.999).
Noted: Above figure depends on the yearly basis.
Between offset numbers and pro bloggers examples, you should get a good idea what affiliates earn.
Affiliate marketing may end up being anything from your casual earnings to substantial income. However, Don’t set the wrong expectations.
Often takes time and substantial effort to start Earning Good Money in affiliate marketing.
How one can forecast affiliate earnings. Quantitive you can get an idea what to expect while the accuracy leaves projection will always, a number of programs, specific metrics.
As well as how exactly you are going to market, merchants on your website.
There is A number of variables to consider staring out affiliate. It would be the metrics that will tell you. How will your website do with affiliate marketing?
Consider the following 05.
Click- Through Rate (CTR).
It will Dependent on how targeted your traffic is and the type of linking you’ll be using (banners, text links, product link, reviews, videos).
Conversion Rate (CR).
Percentage of Affiliate Traffic That Converts to the desired action, or percentage of affiliate traffic referred to the merchant website that converts to the desired action.
That will be a sell or lead that you have been paid for.
Average Order Values (AOV ).
Average affiliate –referred ticket: It means that referred ticked calculation with some totals.
Which all affiliate generates those orders and those orders referred to given the period of time and then divided by the number of orders.
Commission or Flat Amount Per Sale Lead: will discuss the various options later but for our example here. Use the percentage of the order value.
Reversal Rate (RR): Percentage of affiliate –referred transactions that get reversed by the merchant.
Whenever it is available at on AvantLink – Affiliate Marketing Platform, ShareASale affiliate networks.
This is the percentage of the affiliate. It refers to transaction that gets reversed by the merchant.
Then you also want to use Earnings Per Click (EPC). The metric that tells you what other affiliates are already making on this program or the matric which is frequently tied to 100 clicks as we also doing further calculations.
It is disclosed for most affiliate programs even priority you are joining them.
It tells you what others affiliates are already making on this program and you can use these metrics to compare to your personal projections with the actual average EPC registered with the programming.
The publisher will some 200,000-page views, per month, picking a real affiliate program that pays 12% commission to all sells and principles very close niche match between affiliate and merchant we arrive at the following calculations.
There 200,000-page views, per month, multiplied by 1% click-through rate, it would result from 2,000 visitors in the month.
These 2,000 clicks or visitors multiplied by 5% conversation rate which is assumptions are here would result in 100 sells in the month. The earning these one 100 sells would average 125$ per tickets. Multiplied by 12% commissions, deducting the 10% reversal rate (RR) would result in 1,350% monthly earnings.
Traffic/Clicks 200.000 – 1% (CTR)=2000.
Sales 2000 – 5%(CR) =100.
Earnings; 100 – $ 125 (AOV) 12%.
(Commission – 10% (RR) =$ 1.350.
Then we compare our personal projected EPC to the programs publicly reported average EPC. And this scenario it would take.
$1.350/ (number of visitors.) which is 2000=and arrive at $0.675/per Click or $ 67.50 Per 100 Clicks.
Comparing are projected EPC figure actually EPC which was $60 dollars we see we are not that far off and our all projections must be sufficient applause able.
Finally, the word of warning, Remember that things will differ extremely from the merchant to merchant so take it relaxed particularly when investment involves not the full victim of your incorrect projections.
Now let’s discuss Passive Income you certainly hear this phrase often. However, if a Passive Income you expect fully automatic earnings they do not require ongoing involvement I have to disappoint you.
You may indeed automate many things as the affiliate.
It is not Possible To Build a 100% Secure Passive Income Stream. You will have to put, Time and effort into it to keep it with the things and keep success.
Understanding Required Affiliate Investment
I will talk about Understanding Required Affiliate investment. First of all, keep in mind there is no worth wide affiliate program or affiliate network will charge you anything to become their affiliate.
Therefore, starting up can be a rather low-cost exercise first and for the most, you need a website. But without the website, you can also do affiliate marketing.
In case of creating the website, it will cost you under, about $15 in the year to register a domain name, after that minimal budget your only on-going expense will be the cost of website hosting, under $10 a month.
Therefore, The arrival startup costs from $ 150/Year. But the cost can be up and down it depends on the domain and hosting companies.
Speaking about the Time Investment: that you can invest as little as much time as you ready to.
It can be anything time from the couple hours of week to 1-2 Hours a Day to Full Working Day.
When you are finally in the position to quote day job, just remember to take one step at the time, and not jump without thoroughly educating yourself, about what surprises.
Skills Right Brain Thinking and Tech Savvy:
As for as technical skills to go: as for as technical skills to go, the raised room both pure right-brainers and Tech savvy, spoke in affiliate marketing.
While coders and programmers, do have certain advantages over the pure right-brainers, you do not have to be, technical savvy to become, successful an affiliate marketing.
Programming skills can help, but you may always outsource the work or use the tool, so whatever you got. You can work with it. Especially you are opening to further self-education.
- Just Remember that Affiliate marketing is about independence the affiliates.
- You may Forecast your earnings but take things easy (especially with additional investments not to fall victim of incorrect assumptions/projections.
- Do not be misled expecting a fully automated passive income stream.
- Finally, devote what you can (time, money, skills) expanding as the situation permits.
Understanding Affiliate Paying Models.
We will now look at the Affiliate paying Models. For which consumer perform actions and affiliates get paid.
The number one model is to consider is:
Cost Per Sale / Pay Per Sale.
The where the affiliate gets paid a percentage of the sell as they refer this model may also be abbreviated be CPS or Pay Per Sale. This is the most widely used payment models.
The Most Widely Used Payment Model (~80% Of Affiliate Programs) use now a day.
Cost Per Lead / Pay Per Lead.
The next model is considered is as Cost Per Lead / Pay Per Lead.
Where Affiliates receive compensation for referred leads (e.g. which may be Forms submitted, subscriptions, free trials, etc).
Cost Per Click /Pay Per Click.
The next model looks at Cost Per Click /Pay Per Click.
It is a CC model, Cost Per Click (CPC) – ceasing model mainly due to a large volume of fraud.
The only major merchant who uses a modified version of this model.
eBay – QCP Quality Click Pricing.
Where the per click rate changes daily based on the value of affiliate-referred traffic.
Through eBay partner network which effectively is there an In-house affiliate program.
They pay accordingly to quality clicks pricing. Where pay per rate, changes daily, based on the value of affiliate refer traffic.
Pay Per Call is another model.
Pay Per Call (PPCall) – Advertisers pay affiliates for hot leads who call in for inbound calls.
Just with other models advertisers, it is the advertisers who determine what constitutes a valid lead or qualified which they will they pay.
PPCall Bridges the gap between online and offline.
Let’s see how pay per calls works.
Step number 1.
The advertiser: where merchant creates Pay Per Call programs or campaigns.
2nd: we as publishers or affiliates apply to campaigns and select toll-free phones numbers the will track our referrals than we run our programs our promotions online or offline.
When the consumers see the number and call that it is the network or pay per call tracking platform that will track.
The calls re-rounding at or are connecting at with the call centers agent on the advertiser side.
If the referral call meets the criteria set by the advertiser we will get the payments from them.
Off-course there is plenty of room for the advertiser may run a cost per sale program where the cost per lead component it may be a cost per sale or pay per call or cost per sale+cost per lead, pay per call.
We learned in paying models that Affiliate is paid for.
- You may be paid Other Actions (Downloads / Installs, Subscriptions, Trials Views, and so on).
Understanding Affiliate Tracking Methods.
Speaking affiliate tracking methods that the click is tracked by the platform.
Either or In-house platform or affiliate network and happens upon an affiliate link.
Tracks merchant’s confirmation page or thanks you page, and it is done by a string of code. Which is also known as a tracking pixel.
Cookies (what are the cookies) and why important? Because affiliates sell are normally tracked using cookies.
Small Text Files Stored/set on the Visitor’s Computer and the duration of how long to keep them, on visitor’s machine, is called cookies life.
Cookie Life –
The time period between the end user’s click on the affiliate link and the last day when the merchant is willing to pay a commission on the conversion.
In our context it means the time period between end’s user click the links and last the when the merchant is willing to pay a commission on the sell made by the visitors that we have referred to them.
The last click wins – The predominant model of attributing affiliate –referred sales now a day.
This means that regardless of how many affiliates touch the customers in the pre-sale process.
It is the last affiliate that says the cookie on their machine, in before a place the order through that will get the full commission.
Tracking: Other Method.
The cookies the only the way affiliate traffic and conversation can get track not at all.
There is a number of platforms. By platforms, I mean both program and software and affiliate network.
They do not depend on cookies for tracking and do not depend on cookies only. Tracking emails would betide to be:
· Methods Shopping Cart.
· End user’s IP.
When affiliate IDs are being amended each URL or main co-operative number, other cookies list, solutions:
- Impact Radius.
- Post Affiliate Pro.
- Affiliate Future.
- Click Bank.
Affiliate Reporting Aggregation.
Affiliate Statistics Aggregators –Tools that help you unify the reporting across different affiliate networks and merchants
Affiliate Reporting Aggregation.
Understanding Affiliate Limitations.
In this lesson, we will answer a very specific question pertaining to Affiliate limitations as affiliates.
- How exactly our payments will be handled?
- Can I be the affiliate without a website?
- May I promote more than one merchant from the same niche?
let’s start with the question related to the Payments.
How exactly our payments will be handled?
In Affiliate limitations first understand that the Affiliate chooses Payment Threshold: upon reaching which your payment will be remitting most affiliate networks and in-house affiliates programs.
Either preset the threshold or allow to you choose the payments threshold then you will also choose the currency.
Currency: the currency I which you will be paid and that is not available in all US networks some operates in US dollars in only.
you will also select the payment method now let’s jump to:
Examples: 1– from commission junction CJ by conversations.
Examples: 2– ShareASale to see how all of the looks will than the affiliate interface.
Here we are commission junction in the payment information section of the affiliate account you can see the minimum payment amount set as $50 the currency set as US dollars.
The payment method is the direct the deposit and then you enter the account information.
Or shareAsell the payment trigger set as this screen between $50 and $200 then we can choose between ACH direct deposit and others options you can see.
- Avant link – checks direct deposits (us banks only) and pay pal: for example: pays via checks and direct deposits (US banks only) and PayPal.
- CJ by conversant – direct deposits and checks direct bank deposits (ACH) available only for select countries
- Google Affiliate network– Paid was paying to their AdSense account affiliates through their AdSense accounts.
- Rakuten LinkShare – pays direct deposits for select countries and checks.
- ShareASale – direct deposits for US Canada UK and EURO based EU accounts that support this payment method and checks sent via regular mail or FedEx.
- Select Networks (e.g. Avangate, MarketHealth.com GdeSlon .ru) and programs (e.g.eTore ) Solutions like Payoneer, E-wallets, and international checks.
- payment terms and options are highly dependent on the specifics of the platform
- keep in mind licking periods and possible reversals. Which we discussed in earlier lessons.
Moving to the next question.
Do I have to have a website for an affiliate?
While Most affiliate programs/ managers will require a website for approval.
Technically one may be an affiliate without a website, for example, you could be a paid search affiliate who runs paid search campaign linking to your ads through affiliate links
Directly merchant website or you may employ in email marketing or run Pay Per Call campaign which works even offline.
However, it is a good idea to still have a website where you will explain the marketing methods that you use because many merchants will not even consider your applications.
If you do not have a website and always double check with each individual affiliate program if your website fewer methods are ok with merchants to do it before applying into the affiliate program.
It is always better to have clarity on these things before your commission are reversed because you have methods turned out into incompatible with merchants strategy for its affiliate programs.
May I Promote More Than One Merchant from The Same Niche?
Finally, to the question promoting multiple advertisers may want to promote more than one merchant from the same niche. Absolutely yes.
Absolutely a free marketer you are the one who chooses the merchant into which you are going to invest your effort.
You also get Compensatation for only when performance occurs merchants know this, extremely rarely request exclusivity.
Understanding Affiliate Agreements.
In this lesson, we will discuss two types of Affiliate Agreements. As well as the key rule a policy to pay the attention to.
The 2 types of Agreements you should review:
- Affiliate Network Agreements.
- Affiliate Program Agreements.
Now it is important to understand that you will be bound by both Affiliate Agreements, also it is important to familiarize yourself with them and comply with both, the other ways, these agreements may be, call:
- Terms of service (TOS).
- Service agreement.
- Terms and conditions (Ts and Cs).
- Policies and so on.
These are all referring to same things, affiliate network or, affiliate program agreements.
Let’s start with Affiliate Network Agreements.
They are Agreements that govern your Relationship with the affiliate network among other things, these agreements, cover such important provisions as :
- Terms of the network’s service.
- Promotional rules and restrictions.
- Payments terms.
Make sure that you thoroughly familiar with yourself with these followings, before starting to work with this kind of marketing network.
Both to comply with them and such expectations on the proper level.
Let’s now go to Rakuten LinkShare Affiliate network agreements for an example:
Rakuten LinkShare calls their affiliate network agreement publishers membership agreements.
You can see they cover the number of previsions from the register with them as an affiliate or publisher and then define the term, of who is an advertiser or who is publisher, or merchant affiliate and into other previsions.
Including payments and qualify the links, and policies, that prohibits specific promotional methods, it is a good example, of standard affiliate network agreements.
Now speaking about Affiliate Program Agreements similarly to affiliate network the terms of services.
These Affiliate program agreements define and govern the relationship between affiliates and merchants ( or advertisers ).
But in this case, between you and merchant. Many merchants will have the additional terms, to those that you will see, and affiliate network agreements that you will have to comply with.
Make sure that you study the these carefully before starting to promote the merchant in some cases, the merchant will summarize.
The key terms of the agreements the first paragraph and others as we are following the example will show the affiliate network let them bring to these in your more digestible form.
Now we are looking, AT&T is an affiliate program which bases on CJ by conversant scrolling down to, their policies, we will see that specified their policies regarding protecting the search engine, marketing bidding keywords prohibited by website domain keywords.
prohibited website contents and acceptable website, the use of logos, trademark, and sub-affiliates.
They said coupon, may only be, used if they provide exclusively through their affiliate programs, and they clarify every one of these through these fields, on commission junction.
There are 07 policies to keep in mind, as you review the affiliated programming agreements.
- Payment terms (number of referrals locking dates extension possibilities).
The number of referrals that the merchants, willing to pay yours for the locking the days on which have we discussed previously and the extension possibilities for these locking dates.
- Trademark Policies (paid search) domains HTML tags and TM rules) You may not be allowed to bid on trademarks exclusively but it may be ok to bid on trademark plus I additional keywords, on search engines. Such as brand name, review.
- Coupon and discounts policy this kind of marketing program specific coupons harvesting non-commissionable sales/products.
- Search engine marketing rules (such as keywords display URL, ad copy direct linking).
- Domain related policies also deserve your attention. (trademarks and specific keywords).
- Content – related policies (Unacceptable content use of logos and trademarks and usage of press releases).
- In conclusion, Promotion-related rules (as they relate to incentives, software, email, sub-affiliates Social media and other promotional techniques etc ).