All businesses want to promote themselves and individuals want to make money to keep some side earnings. What if Viratel Pvt. Ltd. tells you a way to achieve both goals in one shot? Making money online is easy, all one needs is a blog with some following, a marketplace to affiliate with and good content to describe that blog and the product. A publisher may even try for referral programs but affiliate programs always make more sense as referral programs are between acquaints while in affiliate program it is not important that person is known to you too.
Are the words getting too technical to understand? Let’s understand them to phase wise.
What is Affiliate Marketing?
Affiliate marketing is no rocket science; in fact, it is one of the common and the oldest form of marketing wherein the publisher talks about uses and features of a product or service they are trying to promote. A publisher also known as an affiliate may target masses by the medium of his own blog, vblog, website, social media, banners or Google AdWords. These mediums are external websites while the merchant website or marketplace or website offering the affiliate program is known as an internal website.
If traffic on external website attracts someone to open and see the product advertisement then the user is navigated to internal website product page with a different page URL dedicated to that publisher only. A separate URL is issued in order to account business given to merchant by the publisher. The URL to that product gets stored in cookies of the viewer. These cookies are saved for a period of time as decided by the platform encouraging this program.
If the viewer buys recommendation of the publisher in that timeframe then the affiliate gets to earn a certain amount of commission for helping the platform generate sales.
An affiliate program is thus an arrangement by which an online seller pays commission to and an external website for leads or sale generation from his reference.
Wondering how to be an affiliate? Joining a marketplace is free of cost and needs no technical qualification. Any person can be possessing good traffic on the external website with the basic knowledge to product and good promotional content can benefit from this program as it is commission based.
Understanding the 3 entities: Platform, Advertiser, Consumer
In the world of affiliate marketing, an advertiser is a merchant like a company, an agency, an organization or a school. Basically, any platform that has an online presence with e-commerce functions. An E-commerce platform trying to sell its products or services like books, electronics, games, health, beauty, home, kitchen, garden, grocery, music, sports to the life policy, mutual fund etc.
A publisher is an individual who markets and promotes these products from his platform or on external websites with an aim to earning commission on converting leads from his page to buyers from merchant’s platform. Publishers enter into a contract with advertisers to promote the offerings and hence are also known as affiliate marketers. Advertiser helps publisher with a URL and creative like text ads, banners, links etc. The publisher can be anyone, people usually freelance as publisher in their part time for extra earnings in form of commission with unique ID.
The cycle of affiliate marketing is rotated only to invite more buyers as at the end of the chain we have buyers who are largely attracted by inducing demands by means of having them promoted through publishers. A consumer will follow some referral point or word of mouth more than understanding the technical page of the product. Even the creative like banners and ads are made to attract buyers only.
How companies/advertisers track the record of who is sending the traffic?
Companies track the record of who is sending the traffic and making the sales simply with a tracking URL (a unique link given to you by the affiliate company or product company). This URL is used to keep track of all the traffic and sales a publisher is making via merchant website or other promotional techniques.
These URL get stored in cookies of the consumer for a particular number of days as allotted by the merchant. In this time period if a consumer makes the purchase then that sales get credited to the account of the publisher for the commission.