Affiliate marketing can be considered as another form of referral sales marketing. It is a commission-based sales marketing, which overlaps with advertising. Affiliates or partners are rewarded financially for visitors and consequently, customers that they successfully bring to an affiliated website or business. The affiliate earns for each referral while the seller gains customers by collaborating with other affiliates. Over all, it is an extremely beneficial partnership for both sides. It is also an efficient advertising model since it cuts out the intermediary in the process, thereby lowering advertising costs and increasing profits.
In the beginning, only website owners were able to participate in affiliate marketing. This is due to website owners having more reliability in terms of bringing in leads as compared to individuals. However, as the Internet continued to grow, so did the power of individual users to attract large audience shares, prompting businesses to take notice and employ their services in advertising. Today, it is not surprising to hear of bloggers and members of different online community who are successful affiliates and publishers.
Affiliate marketing revolves around the interaction of the seller, the affiliate and the customer. It is an intricate form of symbiosis in marketing where the loss of one participant will mean the breakdown of the system. Affiliate marketing has grown in complexity so much that it now has a tier of players behind the core of three. Multiple tier affiliate program now includes affiliate management agencies, third party vendors and super affiliates.
The power of an increased and organized sales force is demonstrated in a tier affiliate program. It can be likened to multi-level marketing where affiliates are compensated not only for generating lead and sales, but also for the lead and sales of additional affiliates that they have brought into the program. But unlike multi-level marketing which have potential abuses in pyramiding schemes and price fixing, the varieties of affiliate program marketing like tier affiliate program, club affiliate program, green affiliate program, and best credit card affiliate program all work only on the basis of commissioned sales and none from recruitment. Sales from products and services still drive the growth of affiliates and clients and at the same time discourage the negative feedback loops and market saturation that are very common in pyramiding schemes.
To be successful in an affiliate program, you need to be actively writing and modifying your website content for targeted traffic. You also need to string up as many related affiliates as you can to maximize your advertising power for multiple clients. For example, if your website is a tech site (you write reviews and how-to articles regarding gadgets and devices), you can link up with advertisers that have technology or gadgets as their main products or services. Then, just write content that will target that specific audience, or if you are already writing such content, just modify it to increase its persuading power, for readers to be converted and patronize your client’s products and services.
Commission paid from tier affiliate programs are also determined quite easily and multi-tier programs all result in additional commission, only at a lower rate than one-tier affiliate programs. There are also no stringent or various requirements asked to be paid from the commission in tier programs. The only rule followed is that a commission is paid for every lead and sales generated. The commission then only varies in percentages depending on the agreed terms by both parties. At each level of a multi-tier program, the commission decreases as it goes further away from the original referrer.
Two tier affiliate programs work best if you are able to recruit an affiliate, which is very successful in generating leads and sales for the seller. It is virtually a form of passive income for all affiliates involved. The only work you will be doing is in cultivating your line of recruits and checking up every now and then that you are being paid the correct commission for every sales generated.
Sales and referrals are tracked using browser cookies, which are simply just small pieces of text stored on a user’s computer by a web browser. In order to participate in affiliate programs, you need to enable your browser to accept cookies.
A club affiliate program works much the same way as any affiliate program and only differs in the community involved in the program. Instead of individuals joining such affiliate programs, clubs and organizations are signed up in the program and are then utilized as the avenue for marketing exposure by the sellers. Club affiliate programs enjoy an advantage over individuals signing up solo in affiliate programs because they have a potential for a much larger audience share because of the combined numbers of their membership. They will also be more attractive to sellers since they will have an established consumer base.
Green affiliate program on the other hand is any affiliate programs, which are partnered to or support green organizations such as Greenpeace and UNEP (United Nations Environment Program).
Just like in any financial model, success in a tier affiliate program is largely determined by the amount of work you put in. Even though it may be said that passive income is generated, an affiliate still has to do a lot of work in terms of recruiting affiliates, developing and training them and ensuring these affiliates generate leads and sales for the sellers or merchants.
The ultimate goal of any affiliate program is to make money for the sellers. The more customers you bring in for the sellers, the more money you will earn. It is in an affiliate’s best interests to make sellers profitable in order for their commissions to keep on coming. After all, no affiliate will benefit from a seller that has closed its business.
As the development of affiliate programs evolve, we will see more and more sophisticated systems in attracting audiences for conversion into the seller’s market. The creation and emergence of more reliable tracking methods and software for affiliate programs will make tier affiliate programs more attractive for both publishers and sellers.
The success of super affiliates or those affiliates capable of earning more than $10,000 monthly will also become your success as affiliate marketing matures. It is difficult to say whether the market for affiliate program is ready for regulation and organization. One thing is certain though, tier affiliate program and affiliate marketing in general has a bright future ahead. The best has not yet been discovered and fully explored.