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Affiliate Marketing is a program between a seller / advertiser and an affiliate. This sales concept is characterized by a commission based on success that is paid by the seller. The amount of the commission is agreed between the seller and his partner.

The affiliate is responsible for the affiliate portal and manages the advertising space. Affiliate marketing can be done online as well as offline.

How it works

Affiliate marketing is an method online marketing that allows businesses to promote their products and services. Therefore, businesses can look for affiliates - business partners - who place advertisements on their own sites in the form of link or banner ads. There are plenty of high ticket affiliate course to learn affiliate marketing.

The advertising is done by the seller, so the affiliate is actually the intermediary medium. The partner is paid in different ways, which are detailed below according to the cost per action model. Affiliate programs can be created with the vendor themselves and in cooperation with the chosen affiliate.

Alternatively, affiliate networks offer a wide choice of affiliates for sellers (for a fee). Such networks often support both partners, with the creation of the campaign and the payment of commissions.

Seller and Affiliate

The seller, also called a merchant or advertiser, is one of the two stakeholders in the affiliate marketing partnership program, which is concretely a cooperation between sellers and network partners. The vendor delivers the program and the advertising material.

As an online merchant, he cooperates with a website provider, also known as a publisher or affiliate, who offers his website as an advertising medium for banners or the like.

Through this cooperation, the seller knows that his product is being presented to a wider range of potential customers, which increases the reach .

To make the partnership as effective as possible, the seller should choose an advertising partner who has high popularity. In addition, the interests of the target groups must be similar, in order to achieve a high advertising effect.

The affiliate is a counterpart for the seller, as well as a sales partner for the campaign that the seller will benefit from. The affiliate is paid for the advertising space that he makes available to the seller.

Payment models

There are many payment models, to name but a few Pay Per Click, Pay Per Lead, Pay Per Sale, Pay Per Click Out, Pay Per Link, Pay Per Print out, Pay Per View, Pay Per SignUp, Pay Per Install, Lifetime Payment or Airtime Payment. Pay is often replaced by "cost". The most used models are:

Cost per click ( CPC )

With Cost Per Click or Pay Per Click, the seller does not pay the affiliate a flat rate, but pays a certain amount if a user clicks on the ad. Thus, a payment is only made if a user reacts to the advertisement by clicking on it and being taken to the advertiser's website. With this model, the company only has to pay if the user has truly recognized the advertisement.