Affiliate Marketing Definition is simple to define but difficult to achieve. It means what it says, an affiliate marketing program. This program usually uses a method of reward (a payment or incentive) for the performance of the affiliate. The performance is measured by the number or volume of sales made by the affiliate as a result of the marketing strategies used by the affiliate.
The key to an affiliate marketing definition is to understand the three components that make up the entire process: The merchant, the affiliate network and the potential customers. Let’s take a look at these three components one by one. The merchant is the seller. The merchant is the person who wants to sell something. The affiliate network is the group or person who would act as a middleman between the merchant and potential customers.
The second component of the affiliate marketing definition is the actual marketing itself. Basically, this involves creating new sales prospects and converting them into actual sales. This is called the “conversion” component. The third component is measurement – it is the means used to track the results of the efforts put into the affiliate marketing program. This may be done in one of several ways:
Some of the most popular ways include: Pay Per Click (PPC), Pay Per Sale (PPS), Pay Per Lead (PPL), and Pay Per Action (PA). All of these are very popular ways to increase sales. Of course, these are not mutually exclusive since some of them actually do cost money to use. So let’s take a look at each of these separately in more detail.
Pay Per Click (PPC) This type of affiliate marketing definition is very easy to understand. You simply have a website or blog that someone visits, read the materials on the site, clicks on an advertisement, and then visits your web page to make a purchase. The visitor doesn’t even have to purchase the product as long as they visit and read the materials on your site. PPC is usually set up with the advertiser through an affiliate network or search engine. The affiliate network usually provides a system for determining pay rates per sale, while the search engines tend to offer pay per click advertising programs.
Pay Per Sale (PPS) Another easy way to think of PPS is commission sales. An example of a PPS agreement might be an agency who agrees to sell a certain number of pages of a magazine at a discounted rate to the publisher. In return, the publisher agrees not to advertise any of their publications on any other site unless the ad includes the reference of the publisher’s website. This is similar to a joint venture. In the joint venture agreement, the publisher agrees not to advertise any of their publications on their competitor’s website.
Affiliate Marketing Definition – This is probably one of the biggest variations between affiliate programs. The basic definition is that it is a way for merchants to sell products or services on behalf of a merchant, while the affiliate is rewarded for referring a customer to the merchant. It really doesn’t get much more specific than that. The merchant benefits because their sales volume is increased and so are their profits. The affiliate is rewarded for helping generate new business for the merchant. There are many ways the merchant can reward the affiliate, such as cash or gifts.
In essence, when an affiliate promotes products or services on behalf of a publisher, the affiliate is becoming a middleman. When they do this, it really does help the publisher, since they don’t have to pay the affiliate directly or compensate them appropriately. The publisher ends up increasing their sales and their profits and the affiliate gets paid in a few different ways, which really helps them out. There are many different marketing methods that can be used to promote new publishers, such as Search Engine Optimization, Pay Per Click, E-mail marketing, banner advertising, etc.