Affiliate marketing is an online marketing channel with the goal of generating sales through affiliates or website owners. Evaluation within affiliate marketing is based on general performance. This means that an advertiser pays the website owner a commission (a percentage or a fixed amount) for every generated lead: a subscription or purchase of a service, or the sale of a product.
For whom is Affiliate marketing interesting?
Affiliate marketing is especially suitable for web shops and service providers who are focussing on consumers (Business-to-consumer): for example financial and telecom service providers. Affiliate marketing is less suitable for companies that focus on Business-to-Business products and/or services. When deploying affiliate marketing, the first and most important is to implement and optimize SEO and search advertising channels. If you use affiliate marketing without optimizing your SEO and search advertising first, then there is a chance that affiliates will take these channels over from you. In the end it will cost you more: if it is profitable for an affiliate to set up search advertising for you, then you should be able to do it cheaper for yourself. If you want to use affiliate marketing before your SEO and search advertising have been optimized, then make sure you set your terms for your affiliates about what they can/can not do for you. AdResults can advise you in such matters.
How does affiliate marketing work?
Affiliate networks are intermediaries between affiliates (website owners) and the advertisers. An affiliate network provides a software solution that tracks and register clicks and sales coming from affiliates. The advertiser pays for the number of approved leads/sales. If a customer for example returns a product, you reserve the right to disapprove the sale coming from the affiliate within an agreed time period. You don’t pay anything for the rejected leads/sales, only for approved leads/sales. AdResults can support you in the field of Affiliate marketing: we can take (a part of) your verifications, draw up guidelines for affiliates, carry out checks for fraud and expand your affiliate campaigns by recruiting new affiliates.
Which Affiliates are active in the Netherlands?
Ther are a large number of active affiliates. These affiliates can be divided into groups:
- E-Mail Marketing Affiliates: Affiliates who use e-mail files with which your products and/or services can be promoted
- Price comparison sites: Affiliates who make use of product search engines. Big price comparison sites have a business model based on “Pay Per Click”. Price comparison sites within Affiliate Marketing are usually paid based on performance (Pay Per Sale: a specific amount paid for every sale).
- Content Affiliates: Content Affiliates focus on writing content about one or more topics and promote products and/or advertisers that fit within that specific subject. There are several active Affiliates in every branch: Fashion, Telecommunication, Finance, etc.
- Discount Code Affiliates: In recent years, the number of discount code Affiliates have grown increasingly. Coupon sites collect discount codes from advertisers and thus try to attract consumers.
- CashBack Affiliates: CashBack Affiliates provide a portion of the comission (a percentage or a flat sum???) they receive for each purchase from the advertiser, back to the customer.
What should you pay attention to when setting up affiliate marketing?
It is important to realize who is promoting your business and also to state which affiliates may and may not promote you. Questions you should ask yourself:
- How do I deal with legislation? (E.g. Mentioning “Borrowing money costs money” in loans and the fixed book price at cashback sites)
- What affiliates are and are not valuable for me? How do I analyze this?
- How do I deal with affiliates who generate unrealistically high number of sales for me and how do I detect cases of fraud?
In addition to these questions, by deploying affiliate marketing you will become acquainted with many other issues, on which AdResults can give you independent advise and also can take campaign management off your hands. Examples of emerging issues: IP Tracking, cookie dropping, determining compensation, network fees (override and margin method), promotional material (banners, links and XML/CSV feeds), inspection period of leads/sales, network duplication, analysis of affiliates, recruiting affiliates, eCPC analysis, typo squatting, etc.
Read also the AdResults references about the experiences of our clients.