What are Affiliates?
Affiliates are organisations or individuals who drive traffic to a merchant’s site and get paid for the traffic they drive. Normally this payment relates to an action performed by one of the visitors, it could be:
- Flat rate per click
- Flat rate per order / sign up / information request
- Commission on sales
Affiliates can be (roughly) classified into the following groups. This classification is based on how the affiliate generates traffic. Not all affiliate groups will fit with every merchant.
- Content Affiliates
www.momsweblog.com
www.bluecross.org.uk
Types of Affiliates
Voucher Code Affiliates
These affiliates attract traffic to their sites by listing voucher codes and offers that can be used to save money. Many of their visitors are signed up to their website, and have to log in for offers, and receive regular emails from the site. In the past the traffic from such websites has been seen as purely as consisting of bargain hunters who will shop from whichever merchant gives them the best deal. This is now changing as the mainstream press advocates the use of such sites to the savvy consumer, this is making Voucher Code affiliates both a source of new business, AND a way to convince existing customers to continue to buy.www.vouchercodes.co.uk
Cashback / Points Affiliates
These affiliates attract traffic to their sites by giving a percentage of their affiliate earnings back to their users – either as points or cash. Users have an account with the affiliate. In the past the traffic from such websites has been seen as purely consisting of financially savvy fickle shoppers who will shop from whichever merchant gives them the best return. This is now changing as the mainstream press advocates the use of such sites to the savvy consumer, thus making Cashback affiliates both a source of new business, AND a way to convince existing customers to continue to buy.www.rpoints.co.uk
www.greasypalm.co.uk
PPC Affiliates
These Affiliates run search advertising driving traffic directly to merchant sites, rather than to their own website. Instead of paying Google for the click, the merchant pays the affiliate for the sale.Email Affiliates
These affiliate have obtained large lists of 3rd Party opted in email data, and who send emails to these lists in order to generate income. Often they are the big data list owners – eg Experian, Axicom etc. This is new and growing area, and becoming the way to navigate the problems of cold emailing.Product Feed Affiliates
These Affiliates merge the product feeds provided by several merchants to create their own website. Traffic comes to them to see a wider range in one place, before clicking into the selected merchant to purchase. Product feeds are also used by many of the other Affiliate types above.www.mydeco.com
Affiliate Networks
Nearly all affiliates connect with merchants via an Affiliate Network. The Affiliate Network acts as an interchange between affiliates and merchants, providing all the necessary tools to allow both parties to concentrate on driving sales.The affiliate network provides the following key benefits for the merchant:
- Technology necessary to run the campaign:
- Technology to take advantage of market developments fast / help affiliates market to the consumer:
Visibility:
Affiliate networks provides a one-stop shop for affiliates to see the choice of merchant’s programmes available for them to join and what they are offering.
Credibility:
Working via a network means affiliates immediately know the merchant are much more likely to behave honourably.
Ability to market to the affiliates
Each network provides a series of tools which allow Merchants to advertise their programme to the Affiliates.
How to get started in Affiliate Marketing
1. Choose an Affiliate Network
There are several Affiliate Networks available, any merchant needs to choose the network they believe will be best for them. As 99% of Affiliates are signed up to all the networks, the choice will depend on the following factors:
- Technology
- Account management structure / Knowledge of the marketplace
- Recent performance history
- How happy the affiliates are
- Set up fees
- Monthly fees
Set up the programme
2. The next step is to get the account set up, this involves:
- Signing the contract
- Implementing the tracking code on the merchant website so that sales can be tracked
- Building the product feed, and setting up submission to the network
- Creating the affiliate banners & any other advertising materials to help the affiliates drive sales
- Setting up the Account so that it will appeal to Affiliates
- Deciding on the Marketing Plan
3. Set the Marketing Plan
Setting the Marketing Plan requires answering the following questions:
- What are the objectives? Are they to drive new business profitably, to breakeven, to drive repeat purchases?
- What level of profitability is required?
- What commission level will the programme start at?
- What affiliate types should the programme appeal to?
- Should it appeal to all of them on day 1, or appeal to different groups over time?
- How will the programme appeal to these types of affiliate?
- Should there be an incentive to encourage affiliates to join the programme and/or make their first sales?
- What kind of activity, communication or marketing to the affiliates is planned for the first x months?
- When will performance be reviewed?
The marketing plan should be frequently reviewed to ensure it is matching the Merchant’s objectives, and taking advantage of any changes in the market place.
Contact us today to find out how we can help you.
If you would like to read more about Affiliate Marketing visit our Affiliate Marketing Blog
