Affiliate Marketing

Introduction and Overview

What is Affiliate Marketing?
 Three primary forms of online marketing
 Pay per impression
 Pay per click
 Pay for performance (sales or leads)

Affiliate Marketing is a revenue sharing venture between a website

Owner & an Online merchant. It’s a technique where other publishers
and websites will promote your business and get commission in return
for a Sale or Lead
Continues
Affiliate Marketing is an online marketing advertising channel
that puts merchants in charge of an online marketing sales
force.

 Merchants look to earn revenue from sale of their products or

services, pay affiliates (publishers) who want to earn revenue from
placement of product banners or text links on their site.

 Merchants only pay affiliate partners for results, such as a lead or a

purchase “pay-for-performance”.

 Allows merchant to effectively expand reach and brand marketing,

while at the same time managing marketing ROI.
Opportunities and Challenges

Merchant Affiliates Affiliate Network

 Supply terms &  Sign-up to affiliate  Manage billing and
Role conditions, creative, network, promote tracking of activity
compensation structure merchant on their sites through proprietary
and growth of platform
relationships

Compensation  Maximize volume of  Fixed payment per  Over ride – based

transactions transaction on between 20% to
 Commission on value of 30% of affiliate
transaction payments

Key success  Total transactions  Number of clicks to  Volume of

metric  Cost per transaction generate one transaction transactions and
affiliate payments

Growth Tactics  Increase compensation  Increase traffic through  Increase number

and provide flexibility on natural search & PPC of affiliates
the terms of the program  Design sites that fulfil through
consumer missions aggressive
recruitment
Affiliate Marketing Process

Creative Assets

Affiliate Affiliate Terms & Conditions

Network Tracking codes
Network Console
Payment system

Tracking of transactions

Merchant Merchant Merchant

Affiliate Site Booking Confirmation
Page
Program

Affiliate
www.bestflights.com Commission Payment

Over-ride Network Payment

Types of Affiliates Sites

 Shopping – site are virtual malls. The consumer shops for various brands and
products on site. These sites are not driven by particular coupon or deal offer

 Coupon/Deal – most popular affiliate model. These sites are shopping sites that
require merchant to provide consumer with either a coupon, percent off savings, or
free shipping offer

 Comparison Shopping – sites sell items using a comparison model. These sites
usually require a data feed of merchants’ products.

 Loyalty/Rewards – sites where a percent of the merchant’s commission is used to

pay reward to consumer. Allows consumer to select their reward option. Rewards
can include cash, airline miles, credit card points, or donation to charity or
organization
Types of Affiliate Sites (cont.)
• Content – sites are usually not shopping sites. Consumers go to sites because
the content is of particular interest. Sites to particular product contained in
site

• Search – affiliates promote merchants via search engine marketing, using either
natural or paid search practices.

• Blogs/Forums – sites post or feature article that focus on a particular product

or merchant and include an product affiliate link to the product.
Types of Affiliates
•Coupon/Shopping sites •Content
•Comparison shopping •Data feed
•Loyalty and reward sites •Twitter
•Email •Facebook
•Blog/Forum •PPC/Search
•Mobile •SMO
•Deals
•SEO
Examples of Affiliate Sites
What is An Affiliate Network?
An Affiliate Network is a third party that acts as liaison between Affiliates and
Merchants

 Allows Affiliates to find Merchants which are suitable for their site

 Allows Merchants to find Affiliate sites that expands reach to their target audience

 Services include tracking technology, reporting tools, payment aggregation and

processing

 Provides a creative bank or repository for storing and accessing creative assets

 Is no cost for an Affiliate to join

Examples of Affiliate Networks
How Does It Work?

1. Affiliate obtains Merchant creative from Affiliate Network and loads to their site
2. Consumer visits Affiliate site and clicks Merchant banner
3. Cookie is set on Consumer’s browser which identifies Merchant, Affiliate and link
4. Consumer is directed to Merchant site
5. Affiliate ID is captured by Merchant in referring URL
6. Consumer makes purchase from Merchant
7. Cookie information sent to Affiliate Network
8. Merchant transmits sales file to Affiliate Network which includes Affiliate ID
9. Affiliate Network tracks sales transactions with Affiliate ID and pays Affiliate
 Affiliate Marketing Diagram

Online Shopper

Affiliate
Sales File Payment
Network

Order Conformation Affiliate Site

Merchant Site
Affiliate Programs at 75% Retailers
Internet Retailer “Hot 100 Retail Web Sites.”
How Big is the Industry?
According to one source:

Source: Forrester Research, Inc.

U.S. Affiliate Landscape

This is just 25% of ONE network’s (LinkShare) affiliate universe!

Why Such Rapid Growth?
Revenue

Spend

Measurable, ROI+ for merchants,

Performance-based $$$ for publishers

More consumers looking New tools are making it

online for info, deals easier to implement
Why Publishers Like
Affiliate Marketing

• Performance model pays publishers for

the quality of their work

• More flexibility for ad integration,

adding to a publisher’s content

• Connect directly with top-tier

advertisers, no insertion orders required

• More control over the ads displayed

Teams we deal with
 Design team – For Affiliate Newsletters, Banners
 Email Marketing Team/FDA – For Weekly Exclusive Deals
 SEM team – Helps you to find out the Affiliates Bidding on
Brand Term
 Content Team – For Newsletter Content, Landing page and
etc
 Tech Team – Any tech related issues
Thanks!!