Affiliate Marketing

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Major brands are now adding affiliate marketing to their online marketing strategy in order to compliment the more typical forms of paid advertising on the internet.

Affiliate marketing is a method of promoting an online retailer of products or services via a network of websites who endorse and promote the offering their audience. Typically this could be via email, graphical advertisement or blog, however recently there has been growth of using videos as the promotional vehicle.

Affiliate marketing is a considered a cost effective solution, as the affiliate is only paid after a sale has occurred compared to typical advertising models.

Affiliate marketing strategies

After the strategy and target market has been defined, Wiliam will develop a series of advertising pieces which deliver a key message. Then together with relevant keyword phrases and approved articles these are promoted by some of Australia’s leading affiliate networks to deliver the program to their existing affiliate programs. For products which have an international focus, Wiliam has previously worked with Asian, American and European affiliate networks to grow global sales.

Benefits

Retailers who establish affiliate marketing will benefit from lower costs per acquisition then through typical online advertising. Once established, it is essential to develop a community of reliable affiliates, who are committed to your program and its success. One strategy would be creating a monthly email newsletter to communicate directly with your affiliates. A monthly newsletter not only increases awareness in your program but allows you to offer incentives on commissions for their performance.

Affiliate payment models.

The majority of affiliate programs only pay affiliates on performance, i.e. 10% of the sale or $10 per sale, typically this is called CPA (Cost Per Acquisition) or sometimes referred to PPA (Pay Per Action) . Apart from direct sales, websites might decide to reward affiliates say $1, for having their audience to fill out a form or join a newsletter. As the merchant, you control the proposition to the affiliates.

Who is doing it?

Most online retailers right around the world have developed some sort of referral based marketing program for their online sales. International giant Amazon has publicly stated that a considerable amount of its sales are now derived via its affiliate program.

Developing your affiliate program

If you already have an affiliate program and want to expand its success or are want learn more about developing and delivering your own affiliate marketing program, contact us.

Affiliate Program Abbreviations