Affiliate Programs – What is it?

Affiliate programs are nothing more than affiliate marketing. It is an efficiency channel based on the relationship: seller (advertiser) – partner (publisher / affiliate). The specificity of this channel means that it is not a direct marketing technique. Closer to the model of employing independent marketers, who – motivated by a commission system – take the most effective actions to attract the largest number of customers performing the desired actions.

Participants of partner programs

Before you implement affiliate marketing, you should know the essence of its functioning. In this case, four “links” play an important role.

Seller (advertiser)
The salesperson is the main element in affiliate marketing – it is he who “launches” the affiliate program, wanting to promote his products and acquire customers in order to achieve his business goals.

Partner (publisher)
The partner has an advertising space that can be used to promote specific products / services. Any publisher or social media users who, as part of the affiliate program, intend to present the seller’s offer can become a publisher.

User
The user is simply a potential customer who clicks on a special affiliate link. As a result, he is redirected to the advertiser’s website and makes a purchase or performs any other desired action there.

Affiliate Network
An affiliate network is a platform that provides technology that allows collaboration between the seller and the partner. Its role is also to control the correctness of cooperation and optimization of activities carried out by advertisers and publishers.

Affiliate programs – types

All affiliate programs operate on similar principles. However, their types may be different, taking into account, for example, how advertisers are billed with publishers and the affiliate network. So let’s explore the available options to choose the most favorable and best suited to your needs

Pay per sale
Pay per sale (PPS) is a method of accounting for participants of affiliate programs, which consists in granting a specific amount on sales. It can also be a percentage of the amount of the final purchase made by the user. Accounting in the PPS model is the most popular in partner programs. Due to the fact that they are characterized by a relatively low conversion, the paid commissions are quite high – often up to 50% (in the case of services, software).

Pay per lead
Pay per lead (PPL) means the specific amount paid for each specific action taken by the user. In this case, it does not have to be only a customer’s purchase. Acquiring leads may include, among others to sign up for the mailing list, fill out the contact form. This type of affiliate program allows advertisers to measure the performance of specific ads. By calculating the average income in relation to the leads obtained, it can estimate the amount of profits made.

Pay per click
Pay per click (PPC) is a method of accounting for affiliate programs, the essence of which is to pay a specific amount for each click on an ad – similar to Google Ads. The number of products sold does not matter. Of the available types of affiliate programs, settlement in the PPC model enjoys the least popularity.

Affiliate programs are mutual benefits?

Affiliate programs are gaining popularity year by year. According to the latest Paraphrase-Online.com report, total investment in affiliate marketing in Europe has exceeded EUR 12 trillion. Although it is primarily popular among top advertisers, it really benefits every seller. This is due to the simple fact – affiliate programs are a model based on high performance and profitability. The biggest advantage of affiliate marketing are mutual benefits – especially when settling in the PPS model.

The advertiser is sure that the partner will take the most effective actions translating into increased sales of products. The publisher is highly motivated because his dedication depends on how much he can earn. It can also use any marketing methods that are most effective in acquiring customers.

Low cost to the advertiser
Participation in the affiliate program requires advertisers to bear the costs. However, they are relatively low, taking into account the payment of commission only when, for example, there is a sale.

Attractive earnings for the publisher
In the case of affiliate programs settled on the basis of PPL or PPS, the publisher has a chance to earn well. Much, however, depends on his activities. The more thought-out the campaigns, the greater the chance for profit.

Affiliate marketing – where to start?

Are you a salesman and want to run affiliate marketing? You need to start by creating an affiliate program and then invite publishers, e.g. through an affiliate network. Are you the owner of an advertising space and want to start earning? Join selected partner programs to receive sales and lead generation commissions through properly conducted marketing activities.

Affiliate program – what is it?

The affiliate program is the alternative name for affiliate programs run as affiliate marketing. It can be described as internet marketing technique, which involves conducting activities not directly by the seller, but by independent marketers and publishers.

How does the affiliate program work?

The affiliate program is based on cooperation between the seller and partners. Its essence is the advertiser (seller) delegating marketing activities to partners. In return for the effects of their activities, they receive commissions.
It is worth emphasizing that the partners have virtually unlimited possibilities of action. They use available techniques and methods in any way – so that the developed strategy brings the expected results.

Participants of the affiliate program

Although the core of the affiliate program is the advertiser and publisher, there are more participants.

– Advertiser (seller) – informs about the promoted product and provides a specific creation.
– Affiliate network – provides the received creative to publishers.
– Publisher (partner) – places product information in the form of an affiliate link.
– User – clicks on the affiliate link and goes to the advertiser’s website and then purchases.

It is worth emphasizing that partner programs are also possible without the affiliate network. However, many advertisers choose to use it because:

– allows advertisers to establish relationships with publishers,
– manages tracking,
– manages payments.

Types of affiliate programs

Although the essence of how affiliate programs work is actually the same, there are different ways of billing between the advertiser and the publisher. That is why three main types of affiliate programs are distinguished.

Pay Per Lead (PPL)
Pay Per Lead should be understood as payment for a specific action that the user will perform after clicking on the affiliate link. It can be e.g. filling out a form, leaving contact details, subscribing to the newsletter, etc.

Pay Per Sale (PPS)
Pay Per Sale is a type of affiliate program that focuses on sales and purchases. This means that the publisher receives a commission from the advertiser when the user clicks on the affiliate link and makes a purchase. The remuneration is a percentage of the value of the subject of the transaction.

Pay Per Click (PPC)
Pay Per Click is a type of affiliate program in which the settlement is based on clicks made by users. Payments are made regardless of the number of products sold. Due to this fact, there are few affiliate programs settling on such principles, because they often do not translate into sales effectiveness.

It is also worth emphasizing that there are two types of affiliate programs:

– one-level – the publisher receives remuneration only for its own activities,
– two levels – the publisher receives remuneration for its own activities and the activities of the team it created.

The important role of affiliate links

When talking about affiliate programs, mention should be made of affiliate links. It is thanks to them that the user gets to the advertiser’s website, and the publisher receives remuneration.

An affiliate link is a unique URL that redirects potential customers to the advertiser’s website. Thanks to this, we know what part of the sale comes from the affiliate program. The advantage of affiliate links are unlimited possibilities of use. It is a comprehensive tool that can be used regardless of the type of marketing activities. These types of links can be placed in multiple channels at once, e.g.

– blogs,
– YouTube channels
– mailings,
– social networks,
– discount websites,
– thematic websites,
– internet forums,
– search engines and product comparison websites.

Affiliate program – where to start?

If you are a salesman and want to achieve your goals, you must first create an affiliate program. The next step is to invite publishers to participate. Although you can create a publisher network yourself, it’s better to get started with affiliate network support. It provides all the technological facilities, tools for publishers, as well as tools that allow you to track statistics useful during campaign optimization.

If you’re a publisher, you can search for advertisers on your own or, as with sellers, join an affiliate network. Thanks to this, you will not only gain access to active partner programs, but also the certainty of proper settlement of sellers.

Affiliate programs – is it worth it?

Affiliate programs are a marketing technique that has mutual benefits – both from the advertiser’s and the publisher’s point of view.

Low advertising cost
The advertiser bears much lower advertising costs because the publisher is responsible for conducting marketing activities. Depending on the type of program selected, for example, the seller may only be billed for sales, thanks to which he ultimately bears a lower cost compared to independently conducted advertising activities – even if the sales commission is quite high.

Chance for an attractive salary
A publisher participating in partner programs has a chance to get a high salary. It is adequate to the efficiency of marketing activities, which motivates to intensively promote the product. It can use any tools – so as to ensure the highest possible conversion.