Affiliate Marketing is a source of a passive income. You will set up everything, go to sleep and see the money you made at the morning. So, what is this passive money generating marketing technique?
How Many Types of Affiliate Marketing?
Its a type of marketing that is based on revenue sharing. In affiliate marketing, you pick a product that you like. You promote it.
Then, you earn a commission for every sale or traffic that you have generated. It is a simple concept that has developed into a complex hierarchy.
It has three main participants.
They are the advertiser, publisher, and consumer. The advertiser party can be three things.
It can be the manufacturer of a product, seller of a product, or an affiliate marketing network.
Now, we will explain in details the three parties that are involved in affiliate marketing.
Who is Advertiser?
The advertiser is the owner of a product or a service. They want to gain revenue, so they
look for affiliates. Affiliates, or publishers, help advertisers to promote their businesses.
Who is Publisher?
The publisher party is the one that promotes the product and earns a share of the revenue.
It can promote the product in many ways on various social media networks. Its duty is to bring sales and traffic to the advertiser party.
Who is Consumer?
The consumer party is the people who buy the promoted product. Who generate the money that is shared between the advertiser and the publisher.
Affiliate marketing is an agreement in which a publisher promote the advertiser’s product in exchange of a commission of every sale or traffic.
What are the Key Terms of Affiliate Marketing?
Affiliate marketing has developed throughout the years. As it developed, marketers added terms to simplify the strategy and the technique. We will divide the terms on two articles.
These are the common terms that defines entities in affiliate marketing.
What is Affiliates?
They are people, publishers, who spread the word about a business. In return, they earn money from every generated sale or traffic.
What is Super Affiliates?
They are the most earning affiliates in an affiliate program. Therefore, They are usually the top 5% who generate 80% of the sales or traffic in an affiliate program.
What About Affiliate Network?
Therefore, Affiliate marketplace is a term that has the same meaning as affiliate network. It is a third party that connects affiliates with advertisers. Besides setting up deals between publishers and advertisers. Therefore, They track sales, clicks and commission payments.
What is Affiliate Agreement?
Therefore, It is the agreement between the affiliate and the advertiser. Therefore, It includes roles, responsibilities, policy, and commission rate of decided affiliate program.
Who is Affiliate Manager?
Therefore, The affiliate manager, also known as Outsourced Program Manager, supervises an affiliate agreement. They ensure that the agreements generate sales and traffic and strike new deals. Therefore, The Affiliate Manager can be an individual or a company.
Who is Advertiser?
Therefore, An advertiser is a business that wishes to increase its sales from marketing.
Who is Associate?
Therefore, An associate means the same thing as an affiliate.
Who Offer Affiliate Program?
Therefore, Advertisers offer affiliate programs to affiliates. Therefore, The program allows people with strong on line presence to become affiliates.
What About Tier Affiliate Program?
Therefore, In this program, affiliates earn commission for every person they invite to join the advertiser’s affiliate program and generated sales and traffic.
Is Affiliate & Referral Marketing Same?
Hopefully, these terms helped you understand the structure of affiliate marketing.
So you might have started thinking that affiliate marketing and referral marketing are the same thing. Therefore, Both are marketing techniques that rewards publishers but there are subtle differences.