What is affiliate marketing? You’ve probably heard of that term before but you are not exactly sure what it is.
Well, affiliate marketing is where you, the affiliate, will earn commission on every sale of the product that was sold. You partner up with a certain company and they will be providing you with trackable affiliate links that, when clicked, will lead to a product page.
So long as people are clicking on the link and buying whatever is on there, you will be receiving percent commissions off of the sale. The commissions can range anywhere between 5 to 70% depending on the company you are working with.
In affiliate marketeering, there are three major stakeholders. The first is the seller of the product creator. This can either be a sole proprietor or a company that is selling goods. Think about
Nike, Adidas, Razer, Corsair, or any huge company that is selling products to their customers.
The second major stakeholder is the affiliate or the seller. This is the person that will partner up with a company through an affiliate program. They will be in charge of the marketing aspect of the business but instead of creating ads and marketing products through traditional advertising; they will create content instead.
Content is king and this is especially more so if you are delving into affiliate marketing. The reason is that you’d want to establish your own audience base. The more people that go to your platform, the better your chances of some people buying your affiliate products.
The last major stakeholder is the consumer. This is any person that is looking for specific products that will only need a small nudge in order for them to be convinced to make the purchase. Basically, you and your partner company will get rich from the money that you can get from your audience/consumers.
Now that you know the most important stakeholders in affiliate marketing, how exactly does an affiliate get paid? Well, there are actually three payment schemes that a company can use to reward their affiliates. They are:
Pay Per Sale
This is the current standard that most affiliate companies follow. This is basically where an affiliate will gain percent commissions based on the sale of a product.
The idea here is that you, the affiliate, will be given a special link that has a trackable cookie that will lead to a product page. So long as people are buying off of the links you are given, you will be rewarded handsomely.
Pay Per Lead
Another payment scheme that is not as common as the first one is the PPL or Pay-Per-Lead. This is where you will only lead your audience to the website of your partner company and if they either sign-up or buy from them, you will receive commissions. As to how much you will get, that will depend on the company itself.
Pay Per Click
The now-defunct payment scheme but is still used by some companies is the PPC or Pay-Per-Click model. This is where you will get commissions off of every click on the affiliate link provided.
Now, as you can already tell, this is no longer the common payment scheme simply because it can be exploited. However, there are some rare companies that do still use this, albeit you will have to search for them really well.