Many people are surprised at the number of sophisticated ways advertisers try to reach them. Most Internet surfers could identify a banner or text ad, but the majority could not tell you about performance marketing also known as affiliate marketing and pay-for-performance marketing.
Affiliate Marketing is one channel of marketing products and services online. It traditionally includes a retailer and a publisher, sometimes known as an affiliate.
For this article, we define a publisher, as an independent party that promotes the products or services of an advertiser in exchange for a commission on leads or sales.
An affiliate displays ads, text links, or product links on its Web site, in email campaigns, or in search listings and is paid a commission by the advertiser when a visitor takes a specific action, such as filling out a form, making a purchase or subscribing to a service.
A merchant, also known as an advertiser or retailer, is a Web site or company that sells a product or service online, accepts payments and completes orders.
If you place an ad or link to the merchant’s products and/or services on your Web site and the merchant pays you a commission for leads or sales that result from your site.
What it Takes to Succeed
Those publishers suited best for affiliate marketing have some consistent characteristics:
They must have a Web site designed for a specific niche of consumers or audience. While not all affiliates have content sites, it is a simple way to enter into the affiliate marketing industry and a solid foundation to build upon if you later branch out to other marketing channels such as search engine marketing
You should have basic HTML skills to be able to insert and track advertisements such as banners, buttons and links
A set amount of time per day to dedicate to the program depending on number of Web sites
Learn the Language – Affliliate Marketers Speak
Just like in any industry, affiliate marketing has its own language. Don’t be intimidated; pretty soon these terms will be second nature.
Application Service Provider (ASP ) – An ASP is an online network that is accessible through the Internet instead of through the installation of software. It is quickly integrated with other Web sites and the services are easily implemented and scalable. An example of an ASP is the CJ Account Manager