Business talk: Understanding affiliate marketing

There are four key players in affiliate marketing. There is the merchant, which is the retailer or brand, the network which is usually the method of payment and allows the affiliate options, the publisher or affiliate and the customer.

Affiliate marketing is used in conjunction with other social media tools such as pay per click and SEO. Referral marketing is not the same as affiliate marketing. Referral market relies on a trust relationship whereas affiliate marketing relies on monetary motives alone to increase sales.

What is SEO?

SEO is optimising your website or blog for search engines so that they appear near the top and attracts more readers. It is done using tools such as keyword density, domain name and permalink structure. The more traffic you have to your website the more clicks on ads.

Email marketing

Email marketing is still very much an effective marketing tool. If done incorrectly, it can be an irritation that just gets automatically sent to our spam box. Yet linked with affiliate marketing it can be beneficial by providing a newsletter or service that readers can subscribe to and thus commit themselves to be a part of the affiliate marking process and not even know it.

Web 2.0

Affiliate marketing relies on web-based technology. Interactive online communities and blogging have impacted affiliate marketing allowing better communication between merchant and affiliate. Web 2.0 platforms such as eBay, Amazon, and Google allow publishers to place ads in blog posts. Affiliate marketing relies on cookies. Cookies collect and store all sorts of information. They store what ad was clicked on and what date and time it was clicked. The first-party cookie tracks how many clicks, what ad was clicked and what commission amounts are to be generated to the publisher. You can either be commissioned pay per click or pay per sale depending on what payment option you choose.

Using Social Media and Blogging

It is firstly important to note that your blog or social media page, such as Facebook or YouTube must first generate enough traffic. It has to be interesting and compelling content to attract readers or viewers. You can also attract subscribers to your blog in a variety of ways through network blogging. You can create an affiliate URL link on your blog, use hyperlink tools to create a word that will encourage someone to click on it. Affiliate marketing on blogs works because there is a relationship between blogger and reader. On a blog you can also choose the type of ads you will affiliate yourself.

Signing up with affiliated programmes

It is best to sign up with affiliates that tie in with your blog or website. If your blog is about art and you place ads of paints and museums, for example, it benefits both of the parties — merchant and publisher. You can look out for affiliated reviews online as well. It is also best to choose companies that already have a well-known brand and established clientele.

Google AdSense

Register with Google webmaster tools by registering your website and site map. Google webmaster and AdSense is the best mentor. It will give you the best information for helping your website grow and making any changes. Over two million users use Google AdSense. They have an existing and reliable advertising pool in place. They have relevant ads and ads suitable for your online content. Ads are reviewed and are of high quality. Specific audiences are targeted. You have flexible ad control as you can choose what you want to appear and block what you don’t want to appear on your blog.

Methods of Compensation

Most affiliate marketers use PPS (pay per sale) while others use CPA (cost per action) and CPC (cost per click). If you are looking to start a home business in affiliate marketing, make sure to do all the relevant research and homework. Choose an SEO domain name for your website. Step by step generates a name for yourself and traffic to your website. Sign up with the affiliated programmes. Ask a mentor for help, whether it be Google AdSense or a friend who is already an affiliate marketer. Choose your method of payment and you are all set to building a passive income.

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