Affiliate marketing is a form of marketing where you promote your products or services via a website, blog, social media channel, or podcast of another company. On one side, you have the advertiser whose products are being promoted, and on the other side, the publisher who places the advertisement.
Benefits for the publisher in this marketing model include the fact that they don’t need their own stock, products, and thus don’t need to worry about logistical tasks. There are many other advantages for a publisher to start with affiliate marketing. However, in this article, we will mainly discuss the benefits for the advertiser.
Revenue Models
There are thousands of affiliate websites where your company can join to promote your product or service. These websites display the right banners and text links, so potential customers are referred to you. The resulting clicks are charged based on the PPC (pay per click) model. However, there are various revenue models in affiliate marketing, so we advise you to determine which revenue model best fits your company and campaign. Revenue models in affiliate marketing include:
- PPC (pay per click)
- Pay per sale
- PPI/PPV (pay per impression/view)
- PPL (pay per lead)
- PPS (pay per sale)
- PPCall (pay per call)
- PPInstall (pay per install)
Affiliate Websites
When choosing the revenue model, it is wise to consider the different types of affiliate websites. We have listed the most common ones for you:
- Blogs/content websites: The publisher shares information, for example, by providing tips, creating a top 10 list of products, or reviewing articles, and integrates your affiliate links.
- Comparison websites: Focus mainly on comparisons between providers, and products are offered with affiliate links from different companies. Your company could be one of these providers. Examples include belsimpel.nl and beslist.nl.
- Cashback websites: On a cashback website, the consumer gets a portion of the amount paid for the product back from the manufacturer. How much the consumer gets back depends on the offer provided by the publisher.
- Discount code websites: Many customers quickly search for a discount code online before making a purchase. These discount codes can be offered on affiliate websites.
- Review websites: There’s a good chance that after discovering your product or service, a consumer will want to read reviews before making a purchase. A publisher offers a review on a review website with your affiliate link, so after reading it, they can immediately make a purchase from you.
Advantages of Affiliate Marketing
The main advantage for an advertiser using affiliate marketing is that you can focus on your core business tasks while outsourcing part of your marketing efforts.
With the aforementioned revenue models, you only pay for results, such as clicks, sales, or impressions. This keeps the risk and costs low.
Affiliate websites generally have a steady stream of visitors because they operate in a niche, such as blogs or comparison websites, or because it is clear what they offer, such as discount code websites. Consumers often know where to go for a purchase or which websites to visit first before making a certain purchase. By joining an affiliate website:
- You reach new potential customers.
- You increase traffic to your website.
- You raise brand awareness for your company.
Disadvantages of Affiliate Marketing
You may also encounter disadvantages when using affiliate marketing. However, these can be avoided if you are aware of them. You can also enlist the help of a marketing agency to handle these tasks for you.
The disadvantages are as follows:
- As an advertiser, you need to ensure you have a tracking system that records all visitors and transactions.
- If you do not closely monitor the websites as an advertiser, outdated promotional materials may remain on the affiliate websites.
- Not all products are suited for affiliate marketing. Products with a low price or small margins are not ideal.
We advise companies to start with affiliate marketing if they want to enjoy the listed advantages. The disadvantages can be avoided with the help of a marketing agency. They can also assist in selecting the right types of affiliate websites and a revenue model that fits well.
Do you need help with this implementation? Or have other questions after reading the article? Contact us via info@digital-increase.com.