Affiliate Marketing, How it works?, Types of affiliates, Affiliate networks, and Challenges and Advantages

1. AFFILIATE MARKETING
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BY
AJAY KUMAR
MBA, DMS
PONDICHERRY UNIVERSITY

2. AFFILIATE MARKETING
• Affiliate Marketing occurs where a third-
party(Affiliate) advertises products or services of
on behalf of a Merchant for an agreed
commission for a sale or lead.
• Merchant rewards affiliates for each actions..
• Cost per Action
• Cost per Lead
• Cost per Sale
• Cost per Click

5. Types of affiliates Personal websites
Content and niche sights
e.g. Wire cutter, CEO
express. In
Email list
Search Advertising
Loyalty Sights
Coupon and Promotional
sights

6. AFFILIATE NETWORK
• Between Merchant and Affiliate there is
generally a important third party in the
affiliate marketing mix- the affiliate network.

7. AFFILIATE NETWORK
• Affiliate network to provide most of the
technical solutions required for an affiliate
programme…
Terms of the affiliate program
Provide tracking solution
Host creative banners
Give commission payment options
Support both affiliates and merchants

8. One example of terms of affiliate
programme
•Hotels.com is offering 5.5% commission on sale, $ 84.74 per 100 clicks.
• The affiliate needs to estimate whether campaigning for Hotels.com is
profitable or not.

9. Leading Affiliate Networks
• Commission Junction
• LinkShare
• Affiliate window
• Trade Doubler
• Amazon Association
• PeerFly

10. Affiliate triple ‘A’ Strategy
Affiliate
Acquisition
• Focused on finding and retaining
high number of quality affiliates.
Affiliate
Activision
• Offers and deals to encourage
affiliates to get on board.
Affiliate
Activity
• Encouraging sales and getting
affiliates engaged.

11. Challenges of Affiliate Marketing
• Seldom contracts are there between
Merchant and Affiliate.
i.e. Affiliate can stop promoting the
programme without any notice
• Little to no industry regulation
• Fear of loss of brand control
• Not easily scalable (a lot of admin and
technical setup)

12. Advantages of Affiliate Markets
• Pay for performance only
• Sales force becomes bigger
• Very low barrier to entry for both Affiliates
and Merchants

13. References
• https://www.google.com/
• www.quirk.biz/emarketingtextbook