More and more entrepreneurs are opting for the web to improve their visibility and they are right. We live in a world where communication is essential.
It is therefore necessary for small and medium-sized companies to innovate their marketing strategies and adapt them to the evolution of today’s society.
Admittedly, creating a website and getting into web marketing is not as simple as it seems. And yes, there are a lot of criteria to take into account!
To develop your activity, you can opt for affiliation. In this article, I will explain what affiliation is and how it works.
Affiliation: A simple definition
The concept of affiliation is not as complicated as that. In fact, I can even argue that it’s a technique that has been used since the dawn of time!
To better understand the subject, it is important to look at history.
The affiliation can be summarized by a partnership with other salesmen.
The affiliation technique was created in the 90s. In 1996, the merchant site Amazon and CyberErotica began discussing the subject.
In fact, the CyberErotica site is now considered the first site to have implemented the affiliate system.
In fact, this site offered a CPC or “Cost per Click” program that worked like this: users were paid for each new connection “sent” to the site.
Unfortunately, several other sites have adopted this technique and there has been a large number of click frauds, resulting in the discontinuation of this program.
Later, sites in the same industry as CyberErotica turned to another affiliate system: cost per sale. The cost per sale consists in remunerating users for each subscription or sale generated.
In France, this technique was only adopted in 1999.
In the beginning, affiliation was not a source of considerable traffic. However, five years later, it proved its effectiveness in generating traffic, especially on merchant sites.
Since 2009, the CPA or Collective of Affiliate Platforms was created. It includes seven actors namely
- The Commission Junction
The CPA has now been awarded the name “Collectif de Performance”. The objective of this collective is to promote affiliation techniques, in order to broaden its missions on the market. However, there are many affiliation platforms, so don’t limit yourself to this list.
To be clearer, affiliation is a web marketing technique by which a website decides to team up with commercial sites to promote its products.
How does affiliation work?
Affiliation has two parts: the site wishing to generate traffic which is the affiliate and the commercial sites offering affiliate programs which are called advertisers.
First of all, you should know that an affiliate program is published with a public hearing so that all interested people can apply.
Each affiliate program has a list of criteria that must be met.
When the affiliate is satisfied with the program proposed by the advertiser, the advertiser verifies its eligibility for the program. Once all the criteria are verified, the interesting part begins!
The advertiser’s remuneration varies from affiliate to affiliate. However, the most commonly used types of remuneration are :
- Percentage compensation: the amount is calculated based on the total sale.
- Fixed remuneration: as soon as the affiliate generates a lead, he is remunerated. This is called cost per lead.
- Pay per click: for each click generated on the advertiser’s site, the affiliate is paid.
Advertisers provide affiliates with all the necessary tools to promote their sites.
As tools, there are advertising visuals, product catalogs, URLs and others.
There is no shortage of affiliate programs on the web. Advertisers even do everything possible to ensure that affiliates are motivated and attracted to their programs.
For this reason, there are many offers throughout the year in favor of affiliates: challenges that reward the most active affiliates, temporary compensation increases, and more.
Previously, several click frauds were recorded. For this reason, when a person is “directed” to the site, the affiliate is not paid immediately.
Indeed, the sale is put on hold and must be validated by the advertiser. The delay depends solely on the advertiser’s processing time.
The advantages of becoming an affiliate
Affiliation has many advantages, both on the advertiser’s and affiliate’s side.
The first advantage for the advertiser is the almost non-existent affiliation budget. Indeed, this campaign costs almost nothing, except the entrance fee.
Affiliation is therefore an almost free and effective way to improve the visibility of your site while gaining notoriety!
The second advantage always concerns the minimum cost of this approach. The advertiser can target a larger community without paying for a referencing or keywords.
The third advantage is that the advertiser can control the budget he wants to invest in an affiliate system. He can also have a total and real time control of the entries on his site.
On the affiliate’s side, the first advantage is that he can offer different products on his site without having to constantly update them.
Indeed, from the moment the offer changes, the banners and links are updated automatically.
The affiliate can also benefit from some visibility, while earning money at the same time.
Affiliation is a great business model because you don’t have any programs, tools or training to create.
Your role is to share with your audience products that may be of interest to them in their work or in their daily lives.
If you have developed an online service, this is a very good way to promote it at a lower cost. By offering generous commissions, your affiliates will be happy to work for you.
But one thing is sure, affiliation requires a lot of work, especially at the launch!