Affiliate programs
Affiliate programs — These are agreements in which individuals (partner bloggers) or companies promote products or services of other companies in exchange for a commission on sales made through their unique referral links.
These programs are a popular form of results—based marketing that benefits both sellers and partners. Sellers gain fame and sales, and partners earn passive income by recommending products they are confident in.
What are the working models?
Model 1. Reward from each transaction.
Partner bloggers connect clients to the payment system and receive a fixed percentage of the client’s turnover.
Model 2. Fixed remuneration.
Under this model, partner bloggers receive a pre-agreed amount for each attracted client, regardless of the volume of transactions made by the client in the future.
But not only that, there are other options.:
• Pay per click (PPC — pay per click). This type of affiliate program provides earnings from each click on a link to a website. The manufacturer pays the blogger-partner for every click of a potential client.
• Pay per action (PPL — pay per lead). Here we are talking about fixed earnings. The manufacturer pays for targeted actions performed by the user. This only takes into account what is being performed by the site user for the first time.
• Payment for sale (PPS — pay per sale). In this type of affiliate program, the blogger partner receives a fixed percentage of each transaction. The total amount of earnings depends on the type of product sold.
Model 3. Special conditions for clients
For example, a Payment service provides partners (other companies) with cheaper tariffs for their services. And this already makes the main product of these partner companies more attractive in their market.
Let’s look at the details and terms in detail.
An offer is a commercial offer that a company presents to its customers, consisting of two to five points, which clearly state all the advantages and convenience of purchasing a particular product or service. The main task is to persuade potential customers to purchase these products from this company.
The customer (manufacturer) is the initiator of the partner program. It provides products or services that need to be promoted in the market. In fact, the customer is the main actor of the entire scheme: he determines the terms of cooperation, provides the necessary marketing materials and tools, monitors sales and behavior of affiliated companies, and sets the amount of commissions and, accordingly, pays them.
Partners are organizations or individuals (partner bloggers) who hire the customer’s goods or services to promote them. These can be bloggers, site administrators, platforms, ordinary social media account holders, web developers, or even members of the public and rock stars. To attract customers and recommend the seller’s products and services, partners use their own resources, audience, and various marketing channels.
Consumers are people who are looking for a specific product or service. In fact, these are the ones to whom all the actions are directed — the main target audience.
Here is a simple example. Company “A” has a factory for the production of automobile tires. In order to attract customers and increase sales, the owner decides on the need for an affiliate program.
After studying the market, the company begins to cooperate with autobloggers with a wide audience.
How do affiliate programs work?
- Регистрация:
Partners join affiliate programs offered by sellers or through partner networks. - Getting unique links:
Partners receive unique tracking links or codes that identify them as the source of any sales. - Product promotion:
Partners promote the seller’s products or services on their websites, social networks, or other channels. - Sales tracking:
The seller’s system tracks sales or other actions performed as a result of clicks on the partner’s unique link. - Payment of commissions:
Partners are paid a commission in the amount of the agreed rate for each successful referral.
Partner bloggers receive unique links and promo codes to publish on their websites, blogs, and social networks. They create interesting content about A’s products.
When users see a recommendation or a link from an affiliated blogger, they visit the A website and buy products.
In case of a successful transaction, the partner receives the payment stipulated in the partnership agreement in advance.
The reputation of the seller and the blogger-partner.
Customers trust brands and partners with high recognition more. The sale of a product directly depends on the level of loyalty of the audience. In this area, the most important thing is the quality of traffic.
Affiliate programs allow you to find new previously unknown sales channels. Discover real “stars” that will boost sales of your products to new levels. In the context of digitalization and a parallel shortage of personnel, this sales and product promotion tool is only gaining momentum. At the same time, it is worth noting the low cost for the manufacturer in organizing this channel – no fixed payments – only a fee for the result, a fee for a specific completed sale of goods or for an action.
