Typically, affiliate marketing is done online. “Affiliates” are individual websites/publishers. A company, let’s say Target, for example, can create a digital marketing campaign on one of the numerous online affiliate networks. They will create an account online with the network and through online and offline interaction, get their company on the respective platform.
This campaign will feature a wide variety of banner ads, mobile ads and other email that affiliate publishers can run on their websites that link to specific products on Walmart.com or their general website. Every time a consumer clicks on these banners and makes a purchase from Target, the affiliate publisher receives a commission. Here at MediaBids, we offer our own unique offline affiliate advertising program, which replicates these online networks, but drives sales from print newspapers and magazines.
Things to Evaluate When Choosing an Affiliate Ad Network
There are a lot of things to consider when considering working with one or more affiliate network. You’ll want to have a good feel for:
Publishers. What types of publishers are part of the network? Is it premium inventory or do they let everyone sign up? Are there types of websites you don’t want your brand on?
Account Managers. Depending on what you’re looking for, you can work with a network that takes a proactive role in managing your account and optimizing affiliate publishers/payouts/promotions or you can choose a network where you are the primary manager.
Fees. What % commission do they charge when they make a sale for you?
Sample of Currently Available Online Affiliate Ad Networks
Sample of Currently Available Offline Affiliate Ad Networks
Setting Expectations of Affiliate Advertising
As with any form of advertising, the more compelling the offer to consumers, the more effective the advertising will be. If you can create attractive creative, a strong offer, and timely promotions, those will perform better than a general advertisement.
Types of Commission Structures
CPA – Cost Per Acquisition/Action. You pay a flat rate for each sale made or customer acquired.
RevShare – You pay a certain percentage of a sale, when a sale is made.
CPL – You pay a flat price per lead when an affiliate publisher drives a lead to you – typical information for a qualified lead is name, address, phone and email.
Pay-Per Call – You pay for a phone call that reaches a certain duration (for example, when you receive a phone call that lasts for a minute or longer)
Bonus – You can offer affiliate publishers a special bonus if they hit a certain amount of sales in a month.
Tiered Payouts – You can offer different payouts to different affiliates based on the number of sales they drive each month.
Online Distribution Channels
Examples of Results
Depending on the strength of your offer and seasonality of your product/service, monthly sales results may vary.
- Sales increased by over $1 million dollars/year for Uniqlo
- 27% YoY Sales Growth ioLo Technologies
- For the holidays, 2015, MediaBids drove a food/beverage e-retailer over 4,500 sales
- For Valentine’s Day 2016, MediaBids drove a growing online baked goods retailer hundreds of new customers in a little over three weeks.
Affiliate by Conversant http://www.cjuniversity.com/case-studies/specialty-retail-design.php
- 514% Increase in Sales over Prior Year
Every network has a story to tell – but whoever you go with, affiliate marketing can be a great way to generate new customers. – Jessica Greiner