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How to Understand Your Affiliate Marketing Campaign?

How to Understand Your Affiliate Marketing Campaign?

Article by Nizam Shapie









Business owners are now opting to offer affiliate marketing as part of their marketing strategy. For most businesses, affiliate marketing is only one small part of their marketing pie. However, a few business owners are beginning to utilize an affiliate marketing campaign with near exclusivity. Affiliate marketing has both its good side and its bad side.

One of the good points to affiliate marketing is that it is generally less expensive than other types of marketing. This is a good deal for newly minted business, or businesses that are struggling. However, as your business grows, you should think to include a wider range of marketing strategies. Other proactive types of marketing should include banner ads, email marketing campaigns, and online infomercial pages.

What Is Affiliate Marketing & Why is it Popular?

Affiliate marketing is a term loosely applied to a style of marketing campaign that is defined by a few characteristics:

* Website owners place advertisements on other website owner’s pages.* These website owners who allow for the placement of the advertisements and the companies who do so are termed “affiliates.”* The affiliate that accepts the ad placements is paid for any sales or leads generated by the ad placements on their website.

In general, the parent company provides a piece of HTML or JAVA code that contains a tracking code and the code that displays the advertisement. When visitors to the affiliates website see the advertisements and click on it or purchase items after clicking on it, then the affiliate is paid a commission for the sale. This means that the more they promote their own websites, the more they promote you.

Affiliate marketing has some very appealing benefits, such as:

* The affiliate marketer is only compensated when the ad produces a desired result.* The business owner is not obligated to pay the affiliate unless the advertisement is successful.* Success is defined as generating traffic or a resultant sale or lead.* Compensation is usually based on pennies per click, lead, or sale.* Cost per click (CPC) and cost per lead (CPA) is based on a flat fee.* Cost per Sale (CPS) is usually based on a commissioned sale.* The parent company (you) and the affiliate set your own contract.

Affiliate marketing is most productive and cost effective if the parent company is well matched with the content on the affiliate’s website AND the affiliate is well known for good traffic and good leads. While many affiliate programs are open to nearly anyone who wants to place an advertisement on their webpage, it is worthwhile to seek out or screen for affiliates who are adept at marketing.

While it is not damaging to have your banner ad on nearly any affiliate page that will accept it, it is best if you also select your affiliates for their content. Affiliates who have content that matched the same demographics as your products would be more productive and lucrative to both you and your affiliate.

Finally, to further enhance your banner or side bar advertisements, you would be wise to have them professionally designed. The success of your banner ads depends a lot on their ability to catch the eye of your intended audience. Care should be taken to create banner ads that would be appealing for your demographic audience to desire to click on. Your banner ads should also fit will on your affiliate’s website and be the correct size for most screen resolutions. Select the colors, wording, pictures, and size of your ads carefully for best results.



About the Author

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