As the online market grows, it becomes increasingly difficult for companies and product manufacturer’s to cut through the clutter and promote their products or services with the quality and effectiveness it deserves. If you have a website or blog, and you are looking for new ways to earn income while online, you should consider affiliate marketing programs.
Affiliate marketing involves a revenue-sharing plan that makes use of automated marketing programs that allow webmasters place an advertiser’s banner or form on their websites and await a visitor to take an action. Not all affiliate plans work in the same way or pay same rates. Some require you to set up a shopping or store page that offers products related to the content of your website while others enable you to place texts and images in the form of hypertext.
Parties Involved in Affiliate Marketing
Affiliate marketing at its very core is about establishing relations between three parties. These parties include;
In the world of affiliate marketing, an advertiser can be a company or enterprise that sells any product. This product can be an electronic appliance, airline ticket, insurance, software application, cloth line, etc. The most important relationship is that you become an advertiser if you are ready to pay other to promote your products and business. Advertisers invest in affiliates for lead generation and sales conversion in an effortless way of outsourcing marketing.
Publishers refer to any company or an individual that promotes an advertiser’s service or products at the expense of earning a commission. Publishers are social media bigwigs, bloggers and website owners who agree to work with the advertisers. The design banners and text ads that have links to take a site visitor to the merchant’s website to make a purchase. Publishers incorporate these banners and other advertising elements and links in their sites. Publishers earn a commission based on their marketing efforts and skills.
Consumers are the final components that complete the affiliate triangle. Consumers are the visitors who see an ad and make an action by clicking a link or submitting their information via a form designed by the publisher. The actions that consumers make take them from the publisher’s site to an advertiser’s website to complete the action, which is called conversion.
How the Three Components Work in Tracking Affiliate Commission
The internet technology can be pretty hard to grasp especially for the non-tech savvy. One fundamental concept the work in affiliate business is the cookie. A cookie is a technology that works with web browsers to store information about user preferences, login procedure, registration details and shopping habits.
In affiliate marketing, one task that a cookie does is to manage and remember the link or ad that a visitor to a website clicks on. There are different types of cookies but in affiliate marketing, the first-party cookie is used. When a user visits a merchant’s website and clicks on an advertiser’s creative ad, the visitor’s browser receives a tracking cookie that will identify the advertiser, the publisher and the commission amount. This data is then stored in what is called parameters and forms the basis for paying publishers.