Affiliate marketing is a technique where you can manage to promote your business with the help of other people or website. Well, an affiliate may earn commission every time a visitor clicks on the advertisement on the website that helps to generate a sale for his merchant.
Who’re the three important entities involved in affiliate marketing program?
1. The Merchant
Merchant is the person who’s interested to sell his services or products online through his website.
2. The Affiliates
The person who promoted the services or the products of the merchant is called the affiliate.
3. The Customers
The web searchers who are looking for products or services offered online.
What are the essential types of affiliate programs?
Here are some of the basic types of affiliate programs available for the affiliates:
- Pay-per-sale: In this affiliate program, the affiliate may earn commission if he sends customers who end up buy products from the merchant’s site. Website like eBay.com and Amazon.com are two most popular websites that offer commission to the affiliates on the basis of the sales generated. However, other websites pay a fixed amount per sale to their affiliates.
- Pay-per-click: In PPC programs, the affiliate may earn on the basis of the visitors’ click on the merchants link placed on the website of the affiliate. Once the online visitor gets into the merchant’s website, the affiliates are not required to bother whether the visitor bought any product.
- Pay-per-lead: In pay per lead affiliate program, the affiliates make money on the basis of number of visitors the affiliates refer who sign up as lead with the merchant’s. The visitors are requested to fill certain information at the merchant’s site. This information is used by the merchant for sales lead or sell to some other companies as a sales lead.
Are you aware of the most common models of affiliate marketing?
Here are some of the models affiliation opportunities provided by the merchants:
1. Banners or Text Links
This is considered to be the most popular model of affiliate marketing. The affiliate marketer places a banner or text links that explains the products of services offered by the merchant website. Once the visitors click on the banner, it can be redirected to the merchant’s website. When the visitors are redirected, they may find detailed information on the products or services and end up buying. In this model, the affiliate gets the payment on the basis of the agreed upon affiliation program.
There are a few merchants who organize multiple affiliate storefronts for different reasons like promoting a particular product line, by region for language and differences in currency and so on. These stores are generally optimized to target specific customers. In this model, the affiliate can manage to design their niche storefront and advertise the products though their website. When the visitor selects a product to buy, he is reassigned to the merchant’s website for payment.
3. E-mail Marketing
When the affiliate promotes products or services through emails, this popularly known as convert well.
4. Multi-tier Marketing
In the multi-tier affiliate model the commission is disbursed on the basis of hierarchical affiliate network by the merchants. Therefore, an affiliate not only earns when he makes a sale or referral, but he may also earn commission on the sale or referral made by anyone in its downlink makes.
Is it possible to use affiliate marketing with magento eCommerce Platform?
Most of the merchants are opening their account with the eCommerce store with the help of Magento platform.
Magento is the most popular eCommerce platform because it is scalable and beneficial for the merchants. This is the most secured platform as it provides inherent support for multi-domain and multi-store capabilities. Therefore, if you place anyone of the affiliate marketing models over Magneto platform, it may provide beneficial result.
There are some of the best affiliate program extensions available on Magento Connect that can easily help you create affiliate programs. The affiliate can effortlessly sign up to sell items for the merchant and get commissions. Different features are offered by the platform like line banner and link management, account management, flexible commission, discount and payout configurations, automated performance tracking and so on.
With the help of Magento’s multi-store capabilities, a main store can be created by the merchant. This store is set up like the fulfillment center that monitors the physical inventory and sales. In the meantime, the merchant can create multiple affiliate stores each promoting a niche product section. Therefore, the merchant can arrange for different product line for each store. He can determine the base price for each product with set commission. Well, the affiliates can take the base price of products in to consideration set by merchant on main fulfillment center or set their own price.
So, magento e-Commerce platform can help to boost the affiliate marketing program as the merchants as well as the affiliates can easily make money without much hassle..