How does an affiliate link work
In affiliate marketing, affiliates advertise the products and services of other companies on their websites and receive a commission for this. Affiliate marketing is an instrument with which performance marketing, i.e. data-based marketing, can be carried out. It has firmly established itself in the advertising landscape on the Internet. There are different remuneration models. What they all have in common is that remuneration is only paid in the event of success. This can be, for example, a click on an ad or a purchase made.
The idea behind partner marketing
The idea of affiliate marketing is said to have originated in 1997 at a party at which the Amazon founder was talking to a young lady about her website. The woman offered to market books on the website for a commission. Little by little, more and more partners were added to their websites Advertise third-party offers for a commission wanted to. Even today, Amazon is one of the big players in affiliate marketing. Affiliate Marketing takes one increasingly central role in the marketing mix a. In 2019, 74 percent of affiliates, 61 percent of merchants and 90 percent of agencies and networks were able to look forward to increasing sales - despite various hurdles associated with the topic of e-privacy.
How Affiliate Marketing Works
Many companies use affiliate marketing to market their products and services online. In affiliate marketing, publishers link to content from partner sites and receive a pre-determined commission. Advertisers only have to pay for this when a certain action has taken place. This can be about clicking on a banner or ordering a product on your website.
Hand on heart: Affiliate marketing is about the money. For affiliates, these are the ones main factors when looking for suitable partner programs:
- Commission amount
- Advertising allowance
In any case, it makes sense to regularly check the commissions of your competition. The partner program search engine 100partnerprogramme.de serves as first aid.
But be careful: Commissions are entered here manually and can be out of date. Therefore, you should also always look in the program description for the respective networks. With a view to browser regulations and the increasing importance of data protection, affiliates can be unsettled when it comes to assigning orders. Therefore, for many, the advertising subsidy is a viable option. On the subject of advertising subsidies, however, the following should be noted: Large affiliates have a very high reach, often with hundreds of thousands to millions of newsletter recipients or followers on social media. Due to this enormous reach and the associated advertising service, these affiliates often demand an advertising cost subsidy as a fixed fee, which can open up two sources of error: A WKZ should not be paid blindly at every point without any prospect of success. On the other hand, prominent advertising spaces should not be underestimated - often paying for a promotion can be profitable.
Affiliate programs and affiliate networks
Many website owners offer one Affiliate program at. In order to understand which publisher was used to access an advertiser's website, the links in the advertiser's advertising material are provided with a code. When the user clicks on an advertising material, cookies are also set with which the process can be tracked.
Affiliate marketing can also be about professional affiliate networks transact. These are platforms that bring advertisers and publishers together and bundle functions such as the delivery of the advertising material, tracking and success measurement as well as the distribution of commissions. Well-known affiliate marketing networks are Awin, Digistore24 and Belboon. The Amazon PartnerNet is a popular and widespread partner program. Affiliates can build their partner business here via the online giant.
Advantages for advertisers
The goal of advertisers is to lead potential customers to their website, for example so that they can make a purchase there. Through the Integration of your content On matching publisher pages, advertisers have the chance that more interested parties will come to their website and can thus increase their sales. Affiliate marketing is an inexpensive advertising option for advertisers, because payment is only due if it is successful. With this form of performance marketing, advertisers have a very low risk. In addition to the possibility of higher sales, advertisers benefit from the integration of their content on third-party websites Branding effects.
Advantages for publishers
Publishers can use the Marketing of third-party products make money on their website. To do this, they incorporate an advertising medium (e.g. a banner) on their website that advertises a third-party offer. The publishers act as partners (affiliates). Depending on the agreed remuneration model, the partners receive a commission for clicks, leads or sales, for example.
Finding Niches: Success Factors for Affiliate Marketing
The US market is forecast to spend a whopping 8.2 billion euros on affiliate marketing in 2022 - compared to 5.4 billion in 2017. If you want to get into the multi-billion dollar affiliate business, you should search for Go to a lucrative niche and create a page to match. In addition to such promising niche topics and generally high-quality affiliate texts, there are other factors that could drive affiliate marketing success.
The use of mobile devices is also becoming increasingly important in affiliate marketing. As early as 2016, more affiliate traffic came from mobile devices than from desktops, and since 2018 the speed of mobile pages has also been a ranking factor. In the meantime, many companies and affiliates have adapted their websites and shops or developed their own apps. An online shop should not only be responsive, the ordering process should also be easy to carry out using a smart device and in as few steps as possible.
Affiliates as sales partners on an equal footing
The relevance of open communication in affiliate marketing is often underestimated. Affiliates expect you personal contact for questions and suggestions all about the partner program. Therefore, contact persons and contact details should be communicated in all channels, i.e. in the program description, newsletters or partner program search engines.
Often the mistake is made of informing affiliates last or not at all about changes to the affiliate program or shop. Changes in the URL structure can lead to links suddenly leading to nowhere. The bounce rate increases dramatically and sales are no longer generated. Communication shouldn't be a one-way street either: Im Conversation with affiliates you often get a lot of useful information and suggestions for improvement. What is the competition doing better? Are there any additional commissions paid? What does the affiliate need to be able to promote the shop better? With this input, the partner program and the cooperation can be actively developed.
The customer journey in focus
The subject of customer journey tracking and the associated analysis of online marketing channels is also a central aspect for affiliate marketing. In order to draw meaningful conclusions from online marketing activities and uncover important touchpoints, merchants have to meet take the time and provide the necessary resources to deal intensively with the topic of the customer journey. Only in this way is it possible to document and analyze a customer's journey from the first contact to the conclusion of the purchase and finally invest the marketing budget in the relevant online marketing channels. In addition, a clean customer journey analysis opens up opportunities to remunerate high-quality affiliates appropriately or more fairly.
Conventional remuneration models in affiliate marketing
There are different compensation models in affiliate marketing. The affiliates' commission is calculated on this basis. All billing is performance-based, i.e. only if a previously defined service has been provided:
- Pay-per-click (commission per click by a user on the advertising material)
- Pay-per-sale (commission as a percentage of the sale)
- Pay-per-lead (commission for each contact of an interested party, e.g. registration or download)
Pay per Assist - the model for content affiliates
The “last click model” or the “last cookie wins” model now seems outdated. Affiliate networks have also recognized this. Many therefore rely on alternative technologies to identify value-adding affiliates and to pay them extra. For example, Awin offers pay-per-assist remuneration on the platform. This is intended to break the publisher's focus on generating the last click and to bring all levels of the advertising effectiveness principle (AIDA model) to the fore.
In order to keep partners who often initiate but not complete purchases, special payments in the form of an advertising allowance can be made. In this way, partners can also be satisfied who would otherwise not have received any remuneration and would therefore no longer advertise the shop in the long term.
Important: This does not mean that the voucher page did not provide any advertising service. It may well be that this was the last impetus to buy. Without previous editorial content, however, the user would not have become aware of the offer. This is one reason why classic voucher portals continue to expand their editorial content and thus generate more initial traffic.
Conclusion: Appropriate remuneration for affiliates
In affiliate marketing, affiliates advertise the offers of third-party companies on their website for money. For example, blog operators can market their web space and make it available to partner companies, which can consist of signing up for a newsletter or selling through the relevant shop, for example. Common commission models in affiliate marketing are pay-per-sale, pay-per-lead and pay-per-click.
Affiliate marketing is basically a welcome opportunity for publishers to monetize their own content. Affiliates are personal sales partners with whom a constant exchange is profitable for both sides. In order to make affiliate marketing fit for the future, one should not focus on the last click, but rather identify and remunerate previously involved affiliates. A fairer remuneration consists, for example, in including assists in the commission model.
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