Affiliate Marketing is an adaptive mutualistic system that provides an easy way to earn money online by promoting other people products and services.
It was traditionally developed as a tool for brand promotion and development. The aim was to consolidate a brands revenue structure through revenue sharing.
Understanding Affiliate Marketing
Affiliate Marketing: Definition
According to Niel Patel:
Affiliate Marketing can be seen as the process of spreading product creation and product marketing across different parties, where each party receives a share of the revenue according to their contribution.
Affiliate Marketing is a two way process focused primarily on driving sales and expanding company's existing customer's base.
And on the other hand, it is a performance-based model in which one promotes other'ss products and services in return for a monetary value (often termed as comissions).
Thus a company to diversify and achieve sustainable fanancial performance introduces merchant network, a non binary parternership program (alike partnership but not partnership) that enables interested publishers to earn a percentage of commisions for every sucessful sale channelized through their applied marketing efforts by rationally promoting and advertising a set of services and products.
The core concepts revolves around the three main pillars fo marketing:
- Merchant Network (Affiliate Program)
- Publisher (Affiliate/Associate)
- Customer Acquasition
Let's corelate things up:
Merchant Network (Affiliate Program) is a multi-tier revenue sharing program that involves recruiting marketers and third party publishers to promote and advertise product and services.
Publisher (Affiliate/Associate) is the network entity that earns commisions for generating potential leads by promoting or advertising products on self-owned or public platforms.
Customer Acqusition is the systematic process of bringing in new customers and generating sales, predominantly through the implemention of persuasive methodologies.
Affiliate Marketing: Twin Role One Goal
Affiliate marketing is conceptually based on the principle of "Twin role one goal". In context, the company (merchant) intuitively embraces the exploitation of new market by registered affiliates and the promoter (publisher) capitalizes on intent acquisition to convert visitors and web traffic into potential customers thereby possibly streamlining revenue for both the respective parties.
The merchant is guided by product creation and the publisher leverages through product selling. The roles are thus intertwined where one creates and other sells.
Whilist the main objective for both the merchant and publisher remains to be generation of sales. The marketer eyes at making sales likewise the affiliate aims at concluding sales. Seems like a fine proposal. Does'nt it?