At its core, affiliate marketing is an online referral program where merchants pay commissions to publishers on sales generated by customers they’ve referred. The merchant can be an online retailer like eBay, or a service provider. Individuals and companies referring the traffic are called publishers, or affiliates, who publish content on the web promoting the merchant’s offerings. Customers are the people that click on the promoted content and make a purchase or complete a specified action. Payment is typically in the form of commission, but sometimes merchants offer a flat rate for a specific action, or a bonus for a type of visitor. EPN offers both commissions and bonuses.
A question we overhear frequently from our new clients is where to start when setting up an affiliate marketing commission structure with their partners. Not paying enough can make it hard to find reps to work with, but overpaying can slash your profits. We’re here to help. The first thing we recommend is that you segment your affiliates by offers so you can better track your marketing efforts. Second, check out these four questions that will help you determine your commission rates for your affiliate program.
Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization (SEO), paid search engine marketing (PPC – Pay Per Click), e-mail marketing, content marketing, and (in some sense) display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.