July 12, 2022
Affiliate marketing as a form of performance marketing: What are your options?
Affiliate marketing offers a variety of ways to take your performance marketing to the next level. Don’t know how?
In that case, we will advise you through this article.
What is affiliate marketing?
Affiliate marketing is a type of internet marketing that is focused on performance (sales). Affiliate partners direct customers to the advertiser’s website, where they make the desired conversion, and the affiliate then receives a commission.
The desired conversion does not have to be only a completed order, but also, for example, filling out an inquiry form, leaving an email address to receive email newsletters, or simply viewing an advertising element.
Partners most often use their own websites, PPC advertising, advertising on social networks, e-mail marketing for promotion.
In affiliate marketing, two parties meet:
The intermediary between the advertiser and the affiliate is the affiliate manager, whose job is to ensure the smooth operation of the affiliate program and communication with both parties.
Types of affiliate marketing
What affiliate marketing can bring
It is probably logical that the affiliate program is mainly used by the big players on the market. For them, the affiliate program can provide 5 to 15% of the total turnover. It is of course less for smaller companies, but it can be a good complement other marketing activities.
Types of commission programs
There are 3 ways to start an affiliate e-shop or web project:
SAAS application
This is usually a cloud-based solution for which a flat fee is paid each month/year. The most widely used SAAS application is AffilBox, which was founded by Mário Roženský and its Affiliate software sold it in higher units of millions of crowns to Ondřej Martínek and Jaroslav Janíček, who then started publishing a podcast about Affiliate marketing.
Advantages:
+ Solution ready to use quickly
+ Lower cost for monthly/yearly use
+ Development is provided by the creator of the application
Disadvantages:
– Necessity to contact partners externally
Affiliate network
An affiliate network is a space where affiliate partners and entrepreneurs offering a service or product come together. It is a kind of online marketplace. An agreed % of the network is paid from each conversion.
The following affiliate networks are widespread in the Czech Republic:
Advantages:
+ Network partners have access to information about advertiser programs and can easily join and start promoting a specific advertiser immediately
+ The development of new technologies is provided by the affiliate network from commissions
+ Usually very simple administration
Disadvantages:
– Usually more expensive monthly/annual fees
– Partner data is available not only to the network, but also to competitors
Own system (software)
A solution suitable for really large e-shops or projects to pay for development through this marketing channel.
Advantages:
+ Tailor-made solutions as needed
+ One-time payment without monthly fees (subsequently, however, additional payments are needed for the development of new functions, etc.)
+ Partner data is well protected in the system
Disadvantages:
– Need to contact partners externally
– Development is time and money consuming
In what cases to start affiliate marketing?
Affiliate marketing is certainly not suitable in all cases and we usually approach it when we have included all other marketing channels. On the other hand, there are e-shops and projects where affiliate marketing makes up about 30% of the total performance.
Article originally posted by Effectix as “Affiliate marketing jako forma výkonnostního marketingu: Jaké máte možnosti?“
Back