Affiliate Marketing

Affiliate Marketing is an incredibly poorly understood marketing channel for a lot of marketers especially in the B2C arena. Affiliate Marketing may seem very vague but a good way to think about it is how a marketer can drive sales for their product or service for e-commerce.

If I sell online as a retailer or as a hotel chain or even credit card company, the desired consumer action I want is to get them to my web site. I would want to leverage third parties to drive traffic to my site and Affiliate Marketing is what really describes that ecosystem. The ecosystem of third parties that are contracted typically via an affiliate marketing network, help manage the tens of thousands of affiliate third party Web sites or publishers who want the opportunity to promote a brand or service or a set of offers and drive traffic away from their sites (which tend to be very heavily trafficked) over to the advertiser site to hopefully entice the consumer to convert. Conversion could be a wide variety of things and for this reason affiliate marketing has a wide range of applications.

Additionally, Affiliate Marketing has a lot of different elements to it and a lot of different nuances. One of the fundamental defining attributes of affiliate marketing is that it's about the business model. The business model then defines what Affiliate Marketing is for that particular organization.

When somebody comes from an affiliate site to the advertiser site and actually buys or takes an action that's a very important defining characteristic of affiliate marketing often referred to as performance marketing. Performance based marketing and affiliate marketing are all about our publishers and affiliates getting paid. Also a key reason why advertisers like affiliate marketing is because it is a results driven marketing channel

There are several drawbacks around affiliate marketing. Affiliate marketing often doesn't involve the highest caliber or highest branded publisher sites. It's often categorized by deal seekers sites coupon sites mommy bloggers who in aggregate have a tremendous following in traffic but tend to be fewer brands focused and more deal focused. That is one of the consequences or one of the compromises that advertisers need to make in order to execute successfully within affiliate marketing. So that's it for now an Affiliate Marketing Thanks for listening.

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