Affiliate Marketing

You may have heard the term affiliate marketing and wondered what it was, how it worked and if it was worthwhile spending your time learning about it.

Affiliate marketing is a performance based marketing that works on a revenue share basis. It is one of the most effective ways for a company to generate new business. A company will allow marketers, individuals, networks and companies to promote their brand using various marketing channels such as SEO, PPC, email, social media, display advertising, reviews of products and services and content marketing.

At the heart of affiliate is the relationship between advertisers, publishers and the consumer. Affiliates sit in the middle of the relationship and help bring sales to the advertisers and great products to the consumer.

Advertisers

An advertiser is any company selling products and services like loans, electronics, gaming and much much more. This is a cost effective way for an advertiser to generate sales as the affiliate will do a lot of the work to drive traffic online and in most cases will only be paid for the sales they generate.

Publishers

The Publisher is the company or individual who generates the sales or leads through their marketing efforts. The publisher or affiliate will agree to work on behalf of the advertiser using approved marketing materials which are generally supplied by the advertiser. These could be email creatives, banners, text link or display ads. It is the publisher’s job to use these and their own websites to generate leads ensuring they are compliant with local marketing laws and also rules and regulations relating to the particular industry.

Consumer

The consumer is the final piece of the puzzle. Without the consumer buying, there is no affiliate marketing. They are the ones who will see the ad, click on it and hopefully purchase a product or service from the advertiser. If a customer purchases or performs the right action, the affiliate will be paid. But how they get paid differs depending on the agreement set out by the advertiser.

How the commission works

Cost per Accepted Lead/Acquisition - This is common in short-term loan affiliate programs. This is where a customer has been sold or provisionally been accepted. You can read more about Leadtree Global’s financial services affiliate network here. With other networks a cost per accepted lead will be triggered by a sale of a product or service.

Cost per Click - This is associated mainly with Google adwords but does extend to affiliate marketing. It is exactly as it says, affiliates are paid every time a consumer clicks on a unique click. This is not as common as it once was due to fraudulent activity with this commission type.

Cost per Lead - Commission will be paid for every lead that is generated. What classes as a lead can vary with networks and advertisers. This could be filling out and submitting a form or allowing your details to be passed to the advertiser for a follow up.

Cost per Valid Lead - This is where an affiliate is only paid for valid leads. So if the lead is duplicate or there is no interest from the consumer, the affiliate will not be paid.

Cost per Funded Lead - This is mainly in the finance industry where the affiliate is paid if a loan is approved.

How does the Leadtree Global platform work?

Leadtree Global works in the underbanked finance sector and works with short-term loan lenders to match borrowers with a lender who may be able to help get finance. Affiliates working with Leadtree Global can generate leads through their websites, email, SEO, PPC, display advertising or social media advertising. All affiliates are paid on a Cost per accepted lead (CPA) or a cost per funded (CPF) basis, depending on the campaign, with the ability to earn up to £75 for every accepted lead. For more information on how it works click here. Leadtree Global is one of many networks. Whatever the industry there is likely to be an affiliate network available. Check out mthink for list of some of the best affiliate networks.