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The Affiliate Marketing it is based on the link between the advertiser and the affiliate. In this commercial promotion technique, the sales procedure is characterized by the payment of a commission that is offered to the affiliate based on the results. The amount of this commission is defined between the two parties. The affiliate is responsible for his own affiliate portal and runs the advertising campaign. The Affiliate marketing it can be done online and offline.

How does it work

THE Affiliate marketing It is part of Online Marketing and is based on business commercial promotion. Companies are looking for sales partners, commonly known as affiliates, to help them with advertising campaigns and advertise them on their websites through links, banners, etc. The affiliate receives different types of commission, we will explain it later with the incentive model CPA (Cost Per Action). Affiliate networks offer a wide range of affiliates that entrepreneurs can use cost-free. These types of networks offer support to affiliates for the creation of campaigns and the establishment of commission rates.

Entrepreneur and affiliate

The entrepreneur, also known as a seller or advertiser, is one of the components of the program of the Affiliate marketing, which aims to generate sales through affiliate networks. The entrepreneur cooperates with a provider web portal, also called a publicist or affiliate, which normally offers its web portal as ad space to advertise the advertiser's ad campaign. Thanks to this cooperation, the entrepreneur will be able to present his brand to a greater number of potential customers and thus increase his sales.

To get the most out of the cooperation, the employer must select an affiliate who is popular. At the same time, the affiliate's web portal should have a profile equivalent to that of the advertiser brand so that the commercial promotion effect is more successful among web users. It is a reciprocal link in which the entrepreneur benefits by increasing his sales and the affiliate receives his commission.

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Commission models

There are different models on which to base the commission. Some examples are: Pay Per Click, Pay Per Lead, Pay Per Sale, Pay Per Click Out, Pay Per Enlace, Pay Per Print out, Pay Per View, Pay Per SignUp, Pay Per Install, Lifetime payment or Airtime Payment. "Pay" is usually replaced by "cost" - Cost Per Click (CPC).

The most used models are the following:

Cost per Click (CPC)

With the Pay Per Click (CPC / PPC) the employer does not pay the affiliate a fixed amount. In this model the commission depends on the number of visits, clicks, that an ad receives. Therefore, the client selects the ad and is redirected to the entrepreneur's web portal where the offer appears. With this model, the company only pays if the ad truly attracts attention.

Cost per Lead (CPL)

The CPL bases the commission on the number of contacts of potential clients that the affiliate contributes to the entrepreneur. This model is generally used for companies that do not seek direct sales to unknown clients, such as insurance, brokers, etc. The necessary information from potential customers is obtained through, for example, catalog requests and newsletter subscriptions.

Cost per Sale (CPS)

The model CPS defines the commission based on the number of sales that come directly from the affiliate's banner. It can be calculated very easily using the UID (Unique IDentifiers). This method is also known as Cost Per Order (CPO - cost per order) And, in this circumstance, a commission is offered for each order.

There are other models that do not follow a per share pattern, such as Cost per Thousand / Thousand (CPT / CPM) or Cost per Impression (CPI).

Conclusions

The Affiliate marketing It offers advantages to both parties: the entrepreneur can generate sales in an economic way and increase his position in the market and, the affiliate increases his profits thanks to the commission.

If used correctly, the increased presence on the internet should lead to a significant increase in sales. In order to carry out an affiliate marketing strategy efficiently, patience, organization and imagination are required since the better the ad is positioned, the greater the number of visits.

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