February 29, 2016
Are you new to the world of affiliate marketing? You may not yet be familiar with the booming industry and how it is changing the world of marketing. With all of its jargon and intricacies, it’s easy to get confused. I’m here to help. Allow me to enlighten you with a little Affiliate Marketing 101!
When I got my start in the marketing industry, a seasoned veteran once described affiliate marketing to me with a simple example that clearly illustrated how the channel works.
“Have you ever told your friend to go see a movie because you liked it and thought they might enjoy it as well? You send a quick text raving about it to your friend and tell them to go the movie theater and see it! What about the restaurant that you recently went to that you just know your parents would love to check out? You call them up, let them know how amazing it was and they make a reservation for the next day. Imagine if that movie theater or restaurant paid you for referring your friend or parents. That would be pretty cool right? This is the basic principal of Affiliate Marketing.” –Warren Marayag, Head of Sales at CAKE
So how does this translate to online marketing? Well, let’s say I have a website running an offer (an item or service for sale) and my friend Morgan has a successful blog. If I launch an affiliate program, I will offer to pay Morgan to send her audience to my website. When Morgan raves about my offer on her blog and directs the reader to my page and he or she makes a purchase, I will pay Morgan a pre-determined and agreed upon percentage of that sale. In this scenario, I am the advertiser (also called a merchant) and Morgan is the affiliate (also called a publisher). Simple enough, right?
Now think about a large advertiser such as Nordstrom.com. A large company like this can have hundreds of thousands of affiliates, therefore gaining traffic and conversions, or purchases, from all over the world round-the-clock.
“The arrangement is a win for both sides since it helps marketers acquire new customers and increase revenues, while affiliates can generate revenues.”
– Shawn Collins, Affiliate Summit Founder & Industry Veteran.
While it is simple to understand the basics (and we hope you do now!) implementing and running a successful affiliate program for your company can be a time-consuming and difficult process. That is where we come in! We are currently offering a complimentary affiliate audit to any merchants who have an existing affiliate program. Simply fill out this quick form and we will be in touch to discuss next steps!
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