Affiliate marketing offers merchants a cost-effective way of marketing. Unlike traditional marketing, which is associated with higher costs, affiliate marketing provides a low-cost alternative.
In affiliate marketing, merchants recruit affiliates into their program. These affiliates then carry out promotions and earn commissions on each sale that they refer to the store.
Affiliate Marketing works on the pay per sale model, where merchants pay to affiliates only when they bring sales to the store. Pay per sale model is less expensive than pay per click or pay-per-view model.
Here we take a quick look at some of the critical aspects of an affiliate program:
Affiliates earn commission on successfully referring sales to the store. Merchants set the commission rates in the program. There are different types of commission rates, such as product commissions, which let you set different rates for products. Merchants can also specify different commission rates for various affiliates.
Commission payments are a vital aspect of an affiliate program. Merchants pay affiliates with the commission that they earn from their referrals. These payments should be done on time and regularly. Timely payments to affiliates can improve the reputation of a store’s program and also attract more affiliates.
Another significant aspect of an affiliate program is its sales tracking. There are two types of sales tracking, these include, referral link tracking and coupon code tracking. Merchants can choose either of these tracking methods or even both.
In referral tracking, affiliates share their referral link with customers, and when customers visit the store using the affiliate’s referral link and make the purchase, that sale gets recorded.
Similarly, in coupon code tracking, when a customer uses an affiliate’s discount code at the checkout while making a purchase, that sale gets recorded as well.
Finally, affiliate marketing is an excellent way for small and big stores to promote their brand and products. Even stores like Amazon, eBay, and more, make use of affiliate marketing. It provides the most value and is simple for brands to get started.