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Affiliate Marketing — The 12 Minute Affiliate System — Hot Offer!

by Emily Jones Writing

Affiliate Marketing — Explained Quickly & Easily

Affiliate marketing is playing an increasingly important role in online marketing. Big companies like Amazon do it on a grand scale. The reasons for this are obvious: Through affiliate marketing, you as an entrepreneur benefit from the recommendation of others. It does not require high start-up costs, which is why it offers you an efficient way to acquire new customers on the Internet. In this post you will find out everything you need to know about affiliate marketing.

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How does affiliate marketing work for companies?

Affiliate marketing is intimidating to many entrepreneurs at first. However, we will show you how this type of marketing can easily generate significantly more leads, sales and ultimately customer growth.

Affiliate Marketing originally comes from the USA. It is an internet-based collaboration between two parties: a company (“merchant”) and one (or more) “affiliates”. The affiliate earns money for the dissemination of the products, services and offers of a company (merchant) on the Internet, for example by setting links to the merchant’s pages on their own pages. This works, for example, through a blog or a social media page. For this purpose, the merchant provides the affiliate with certain advertising materials (e.g. advertising banners, links, etc.). As soon as a customer clicks on these advertising banners or links, they are redirected to the company’s website. With the help of the illustration you can see the 5 steps of affiliate marketing and get a rough overview of how it works:

In affiliate marketing, every advertising material contains an individual and unique “Affiliate ID”. With this, the merchant always knows through which affiliate he has won which customer (or a certain action has been carried out) — and to whom he has to pay the corresponding remuneration.

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What does affiliate marketing cost?

There is no general answer to the question of the costs of affiliate marketing, because too many different factors play a role. A total of 3 types of costs can be distinguished:

Fixed costs (one-time network fees, creation of advertising material, special costs, etc.)

Maintenance costs (e.g. agency fees)

success-related costs (e.g. affiliate commission).

Factors and costs to consider

Average sales value

What is the average sales value of your advertised product or service? And the amount of the average purchase per customer?

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How many competitors are there?

How many competitors are there in your market who are already doing affiliate marketing? This plays an important role, because when there is a lot of competition, the publishers usually have to be offered a higher commission in order to win them for your affiliate program. To answer this question, you can scour platforms like Affiliate and look for offers from the competition.

How is the partner program managed?

Will you oversee your partner program in-house or commission an external marketing or advertising agency ? If the latter is the case, there are of course additional costs. An affiliate advertising agency usually requires an amount to be paid monthly, which depends on the success of the affiliate program.

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Which networks are used?

In which networks should your affiliate program run? The one-time setup payment varies depending on which network you choose. At Zanox, for example, this is up to 5000 euros, while at Affilinet it is significantly lower. At Belboon, it’s completely free. Usually, however, the fees of a network or advertising agency are around 30% of the remuneration paid to the affiliates.

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What is the commission?

Of course, the remuneration also plays a role and is determined by you individually. For example, you can decide whether there are fixed commissions or whether these depend on the sales value. Of course, your average sales value and profit margin also play a decisive role. How Much Money Can Your Marketing Affiliates Make So You Still Have A Profitable Business? After all, you want to make money in the end.

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Which commission model is used?

There are various commission models in affiliate marketing: With “Pay per Click” ( PPC Marketing ) , the remuneration is paid for every click on the advertising material, regardless of whether it is ultimately sold or not. This model is suitable, for example, when increased traffic is the primary goal. “Pay per Lead” (PPL Marketing) refers to a commission model in which remuneration is paid for certain user actions. For example, for newsletter subscriptions. Another option is “Pay per Sale” (PPS Marketing) , where the commissions are paid for each purchase.

Which advertising media are used?

Are the necessary means for advertising (e.g. banner marketing ) already ready or do they have to be created first? If advertising material is first produced by an external agency, these costs must of course also be included in your planning.

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The 6 Most Effective Affiliate Marketing Tips

1. Set goals

As is so often the case in life, the best effort is of no use if it remains unclear whether the measures taken have paid off. For this reason, it is always worth setting goals. It is helpful to define an overarching goal, which in most cases represents a certain turnover or a number of leads. This goal should be realistic but also motivating. The overall goal has several sub-goals. The following are suitable here:

First of all, you have to commit to an affiliate marketing strategy . Ask yourself: What do I want to achieve through my affiliate program? This could be, for example, the following goals:

Boost the sales of your online shop
New customer acquisition & customer growth
Get more registered newsletter subscribers
Generate more traffic and clicks (e.g. Facebook Leads Ads and qualified leads)
Increase in downloads of software / apps / ebooks etc.
More qualified contact requests

Provide the affiliates with sufficient information

You should actively involve your affiliates in online marketing measures and provide them with information. Many affiliates are happy to receive tips that will help you to align your marketing strategy. In the optimal case, only what suits you and your strategy will be communicated. You can support them, for example, by:

Current offers

bestseller

Times of the day when the target group is most active

Season times when the product or range can best be sold

Exclusive news also means that contact with special affiliates is better maintained and they are more closely bound to the company in the long term.

Attend conferences and networking events

You should never maintain your affiliate contacts only by phone or email. A personal meeting with current or potential partners at events is very important for a close and productive relationship. On such evenings, creative and productive ideas often arise that often make the collaboration even more successful. In addition, such events always offer the opportunity to exchange ideas with other merchants. These often offer further impulses from which you can benefit. A large affiliate network is worth gold.

Interact with the affiliates on an equal footing

If you want to create a win-win situation in which both sides are satisfied, you should communicate with the affiliates on an equal footing. Because only if there is trust in the merchant will the affiliate try to present the product as well as possible. Many companies often forget this. Therefore, it is important to always take your partner’s problems and concerns seriously. An honest and respectful relationship will later be reflected in sales.

You always have to pay attention to your numbers

A trustworthy affiliate network is important, but always keep an eye on the numbers and don’t just be good-natured even in a good relationship. The reasons for constant control are, for example:

Performance slump
Recognize black sheep and fraudsters
Recognize and promote the potential of an affiliate
Identify tracking errors

The advantage of online marketing is that it can almost always be controlled by data. This is also the case with affiliate marketing. However, every affiliate partnership should not be terminated immediately if the numbers get worse. First, contact the affiliate should be sought; the cause of the problem and a solution can often be found.

Create a unique affiliate program

There are many different partner programs for affiliates from different companies, some of which offer the same thing. That is why it is very important to make your own unique selling points clear to the affiliates and publishers. This way you can stand out from other merchants, because when almost identical products are offered, it is often difficult to differentiate yourself.

There are several ways you should try to convince publishers of your program. Ways would be, for example, higher commissions, material prizes with high sales, attractive advertising material and good support.

The affiliate network needs a lot of attention and should not be seen as a means to an end. With a lot of commitment, trust and sensitivity it is possible to build a good network

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Thank You!!!