April 12, 2020

What is Affiliate Marketing?

Affiliate marketing is a performance-based marketing model. In this model brands partner with individuals or companies, and pay them a commission for the sales they generate.

6 key players in the affiliate marketing Model

  1. Publishers, affiliates or partners are the individuals or companies who promote the brands product or service on their website for their readers. 

  2. Brands also known as merchants or advertisers, are those that have the product or service to sell.

  3. Affiliate networks usually provide the tracking technology. They manage the tracking, reporting and payment to affiliates. Affiliate networks also provide brands access to a number of affiliates who apply to join their network, which also allows affiliates access affiliate programs.

  4. Software as a Service (SaaS) platforms also provide companies with performance tracking, reporting and payment, however, they do not manage affiliate programs or provide companies with access to a network of affiliates. They focus uniquely on the technology.

  5. Agencies manage the daily operations, and strategy of a program on behalf of brands. They are in charge of partner relationships, partner recruiting, activation and optimization. They work directly with affiliates and with the affiliate network or SaaS platform that services the technological needs of the program.

  6. Consumers are the ones who buy an advertiser’s product or service by being directed from a publisher’s website

How does it work ?

Publishers are paid a commission when a consumer goes on on their site clicks an affiliate link (for example a banner, logo or text link), which leads them to perform a certain action on a brands website.

In general, this action is completing a transaction. However, some advertisers ask publishers to refer traffic to them which results in a lead instead of a sale. This can be done through the completion of an online application form or the submission of the user's email address.

What is Partner Marketing? 

Historically the term “Partner Marketing” has been utilized to describe partnerships that are different from traditional affiliate collaborations such as business development deals, brand-to-brand partnerships or “brand ambassador”-type partnerships with celebrities, athletes and mega-influencers.

However, technological advancements are allowing brands to track reliably the whole customer journey, brands can now efficiently track conversions and app installations. In addition, brands have more flexibility when establishing pricing models. This allows brands to structure a large variety of partnerships on a pay-for-performance model. Brands can build collaborations that expand far beyond traditional affiliate collaborations such as coupon, deal and loyalty sites.


Affiliate and Partner Marketing

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