{"id":54,"date":"2016-02-21T23:59:48","date_gmt":"2016-02-21T18:29:48","guid":{"rendered":"https:\/\/linkmydeals.com\/blog\/?p=54"},"modified":"2023-01-19T14:43:29","modified_gmt":"2023-01-19T09:13:29","slug":"affiliate-marketing","status":"publish","type":"post","link":"https:\/\/linkmydeals.com\/blog\/affiliate-marketing\/","title":{"rendered":"Beginner’s guide to Affiliate Marketing"},"content":{"rendered":"

It is the age of Start-ups & they are known for “jugaad” (makeshifters) and a lot of people have innovative products in their mind. With so many investors and government programs like Startup World, they are able to launch their products, sell them, and make money out of them.<\/p>\n

But not all start-up ideas involve a product or a service that can be sold. Sometimes, it’s a simple Website or an App that helps people in everyday lives. Something that is really helpful for the end user, but leaves an important question in the mind of its owner,\u00a0“How can I earn money out of it?”<\/p>\n

In comes, Affiliate Marketing!\u00a0According to Wikipedia<\/a>,<\/p>\n

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.<\/p><\/blockquote>\n

Err..\u00a0let’s throw all jargons away. I’ll explain them in some time.<\/p>\n

In simple words,<\/p>\n

Affiliate Marketing\u00a0is the act\u00a0of selling\/promoting someone else’s product\/service, and on every successful action (sale\/install\/registration\/etc)\u00a0you are\u00a0paid some percentage as commission.<\/p><\/blockquote>\n

Is it same as Advertising?<\/h3>\n

Not exactly. Affiliate Marketing is about monetizing the\u00a0core content of your Website\/App. Affiliate Marketing is also called as ‘Performance Marketing’, which means you are paid based on the end result\u00a0of user’s action.<\/p>\n

The most common example of\u00a0Affiliate Marketing is a product review. Suppose you have a technology blog, on which you review the latest Mobiles and Laptops. Your frank\u00a0reviews are\u00a0the core content of your blog. With Affiliate Marketing, you can provide links from your review to the e-commerce website on which it is available for sale. And whenever a\u00a0user clicks on your link, and purchases from the e-commerce store, you get a commission for that.<\/p>\n

Parties involved<\/h3>\n

There are at least 2 parties involved here.<\/p>\n

One is the ‘Merchant<\/strong>‘ which is a store\/website\/company that sells the product.<\/p>\n

And the other is an ‘Affiliate<\/strong>‘ which is a\u00a0person\/website\/company that sends traffic or leads to the\u00a0Merchant.<\/p>\n

However,\u00a0it would be practically impossible for someone to become an Affiliate for each and every Merchant out there. Even if someone does that, recovering the commissions earned and maintaining the records will become extremely challenging in itself. So there is a third party in between, called the ‘Affiliate Network<\/strong>‘.<\/p>\n

The task of an Affiliate Network is to contact and enlist all merchants who are interested in paying commissions. Affiliates can then join one or more such Affiliate Networks, who track the goals achieved\u00a0and commissions earned. They also recover commissions from the merchants, and after deducting their fare share from it, give the remaining to the Affiliates.<\/p>\n

Types of Affiliate\u00a0Programs<\/h3>\n

There can be various user actions for which an affiliate can get paid. The most popular type of commissions are as below:<\/p>\n

    \n
  1. \n

    Cost Per Sale (CPS)<\/h4>\n

    This is typically true about e-commerce websites, where the affiliate is paid based on the sales generated by the traffic coming from the affiliate website. The\u00a0merchant can attribute sales based on one of the below methods:<\/p>\n