What the chart above doesn’t show is the role of the affiliate marketing network (e.g., Commission Junction or LinkShare). From the publisher’s point of view, the affiliate network is involved very early on in the process, generally supplying the ad creative and affiliate links used to refer traffic. They’re also involved at the last (and most important) step in the process: a portion of the commission earned by the affiliate goes to the network who matches them up with merchants and handles the various administrative functions.
In some cases, the purchaser arrives at a page where the affiliate cookie gets set, then leaves and makes a purchase via the PPC channel sometime before the affiliate cookie expires. Other times, the purchaser may click a PPC link, fail to make a purchase, but later purchase via an affiliate link. In both scenarios, the affiliate marketing channel played a part in the sale, but the role was different.
2) Customer Acquisition Cost – What are you currently spending to acquire new customers? Whatever that amount is, assuming you're profitable, you could technically offer up to that amount to your affiliates for generating new customers. If you can safely spend 10% to acquire new customers through your ad channels, you could afford to offer that rate to your affiliates. (But it doesn't mean you have to. It might just mean you need to optimize your ad spend because you're leaving money on the table.)
No discussion on affiliate programs is complete without mentioning the ecommerce giant: Amazon. The official website lists over a million products and lets you earn commission by advertising them to your customers. The important fact is that this affiliate program meets all the prerequisites of offering high commissioner and offering a broad range of products.
One big difference between SkimLinks and VigLinks, however, is that once you’re approved by the company, you can choose to work with any merchant or program on its platform. SkimLinks has also published a white paper discussing its partnership with Buzzfeed, giving SkimLinks a lot of credibility. SkimLinks also has a higher tier of vetted merchants called “Preferred Partner” and “VIP” that both pay higher commissions than standard merchants.
So you are ready to take the affiliate world by storm. The first big hurdle is to decide what you are going to pay your affiliates. Affiliates who refer sales to you get a commission once a sale (or a different conversion action) is completed. Payments can be either (a) a flat amount (in whatever currency you operate) or (b) a percentage of the total sale (exclusive of taxes and shipping). So, how do you determine what your affiliate program commission rate should be?
Answering these four questions will funnel down to the rates that work best for your business, at least to start. It’s good practice to evaluate your rates at least quarterly to make sure that they’re not only still competitive, but make fiscal sense for your bottom line. Additionally, having these four answers will help you if you find yourself negotiating new rates with your affiliates.
A relative newcomer that was only founded in 2014, ConvertKit has taken the world of email marketing by storm. According to the company, they now have nearly 20,000 active customers of their email services. Their affiliate program works by paying existing customers a lifetime 30 percent commission for referrals that subsequently become ConvertKit customers or who sign up for ConvertKit webinars and other digital products.
Choose a product that is relevant to your audience. Think about the traffic that will be visiting your blog. If you are writing a blog about sewing, it might not make sense to have affiliate links to weight lifting equipment. Chances are your readers wouldn’t be interested in that product. This means they would be less likely to click on the affiliate link, let alone purchase something through it.
The seller, whether a solo entrepreneur or large enterprise, is a vendor, merchant, product creator, or retailer with a product to market. The product can be a physical object, like household goods, or a service, like makeup tutorials. Also known as the brand, the seller does not need to be actively involved in the marketing, but they may also be the advertiser and profit from the revenue sharing associated with affiliate marketing.
LinkConnector imposes a very rigorous and lengthy screening process, so you’ll need to prove that you have a high-quality website and established audience before being accepted. Despite its somewhat schizophrenic approach, LinkConnector does have some very happy long-term affiliates. And their “naked links” allow for direct connection to the merchant website without having to be rerouted via LinkConnector, which will give your website an SEO boost.
If at any time there has been no substantial activity on your account for at least 3 years, then we will have the right, with 7 days’ written notice to withhold the accrued fees for your inactive account, up to a maximum closure withholding of an amount equal to the minimum amount listed in the Payment Minimum Chart for payment by gift card. Further, any unpaid accrued fees in your account may be subject to escheatment under applicable law.
If your website doesn’t have much traffic to speak of, there’s probably not a big opportunity for you now in affiliate marketing. Focus on producing high quality content, building some links, and getting a recurring stream of visitors to your site. But if you have a website that is already attracting a significant number of visitors from referring sites, organic search, and direct visits, affiliate marketing could be a logical way to monetize.
Tradedoubler was founded in 1999 by two young Swedish entrepreneurs. They have offices in the UK and multiple countries throughout Europe, including Sweden, Germany, France, Poland and Spain. Their focus has always been to provide smarter results for both clients and affiliates through technology. In 18 years, they’ve amassed an army of 180,000 active publishers, connecting them to over 2,000 merchants in Europe and the UK. Many of these merchants are household names.
(d) Indemnification. WE WILL HAVE NO LIABILITY FOR ANY MATTER DIRECTLY OR INDIRECTLY RELATING TO THE CREATION, MAINTENANCE, OR OPERATION OF THE INFLUENCER PAGE, AND YOU AGREE TO DEFEND, INDEMNIFY, AND HOLD US, OUR AFFILIATES AND LICENSORS, AND OUR AND THEIR RESPECTIVE EMPLOYEES, OFFICERS, DIRECTORS, AND REPRESENTATIVES, HARMLESS FROM AND AGAINST ALL CLAIMS, DAMAGES, LOSSES, LIABILITIES, COSTS, AND EXPENSES (INCLUDING ATTORNEYS’ FEES) RELATING TO ANY CONTENT WITHIN THE INFLUENCER PAGE PROVIDED BY YOU.
Notwithstanding the foregoing, Qualifying Purchases are disqualified whenever they occur in connection with a violation of this Associates Program Fee Statement or any other terms, conditions, specifications, statements, and policies that we may issue from time to time that apply to the Associates Program, including the most up-to-date version of the Agreement (collectively, the “Program Documents”).
The General Data Protection Regulation (GDPR), which took effect on May 25, 2018, is a set of regulations governing the use of personal data across the EU. This is forcing some affiliates to obtain user data through opt-in consent (updated privacy policies and cookie notices), even if they are not located in the European Union. This new regulation should also remind you to follow FTC guidelines and clearly disclose that you receive affiliate commissions from your recommendations.
If you are starting from scratch with a brand new product, you may have to guess at what the marketing cost per customer should be. For an established product, you can take historical data and arrive at acceptable marketing costs for each acquired customer. Either way the total cost of marketing involved in the acquisition of a single customer is the sum of all marketing dollars spent acquiring the customer.
You will market Local Associates Products to Amazon customers only at those locations and through those methods by which you customarily conduct your registered business. Solely with respect to the Local Associates Program, and notwithstanding anything to the contrary in the Participation Requirements, you may include Special Links in written physical and digital materials (including email) which are displayed, distributed, emailed, or offered to customers, clients, or third parties with whom you have a preexisting relationship; provided, that such written physical and digital materials are in compliance with the Associates Program Operating Agreement, the Trademark Guidelines, and the Amazon Brand Usage Guidelines. Upon our request, you will provide us with representative sample materials and written certification that you have complied with the foregoing. We will specify the form of, and content required in, that certification in any such request. Any failure by you to provide the certification in accordance with our request will constitute a material breach of this Local Associates Policy. For the avoidance of doubt, (i) for the purposes of the CAN-SPAM Act of 2003 and any similar or successor legislation (CAN-SPAM), you are the “Sender” of each email containing any Special Links, (ii) for the purposes of the Communications Act of 1934 as amended by Telephone Consumer Protection Act of 1991 and any similar or successor legislation (TCPA), you “make” and “initiate” each text message containing any Special Links, and (iii) you must comply with CAN-SPAM, TCPA and marketing industry standards and best practices for all emails, texts, and other messages relating to the Local Associates Program. Amazon may revoke the offline marketing permissions granted in this Section 3 at any time in its sole discretion by providing written notice to you.
Writing product reviews are an excellent way to enhance your credibility as an affiliate marketer. This is especially easy with information products like e-books which are relatively inexpensive. After establishing some steady income it may even be worth buying higher-end products, provided you get in touch with the product creator to work out a strategic marketing plan that takes you to the next level.
Some commentators originally suggested that affiliate links work best in the context of the information contained within the website itself. For instance, if a website contains information pertaining to publishing a website, an affiliate link leading to a merchant's internet service provider (ISP) within that website's content would be appropriate. If a website contains information pertaining to sports, an affiliate link leading to a sporting goods website may work well within the context of the articles and information about sports. The goal, in this case, is to publish quality information on the website and provide context-oriented links to related merchant's websites.
(z) You will not display on your Site, or otherwise use, any Program Content to advertise or promote any products that are offered on any site that is not an Amazon Site (e.g., products offered by other retailers). You will not display on your Site or otherwise use any data, images, text, or other information or content you may obtain from us that relates to Excluded Products.
If you provide us with suggestions, reviews, modifications, data, images, text, or other information relating to any Program Content or in connection with your participation in the Associates Program, or if you modify any Program Content in any way (collectively, “Your Submission”), you hereby irrevocably assign to us all right, title, and interest in and to Your Submission and grant us (even if you have designated Your Submission as confidential) a perpetual, paid-up royalty-free, nonexclusive, worldwide, irrevocable, freely transferable right and license for the maximum duration of protection available under applicable law to: (a) use, reproduce, perform, display, and distribute Your Submission in any manner; (b) adapt, modify, re-format, and create derivative works of Your Submission for any purpose; (c) use and publish your name in the form of a credit in conjunction with Your Submission (however, we will not have any obligation to do so); and (d) sublicense the foregoing rights to any other person or entity. Additionally, you hereby warrant that: (y) Your Submission is your original work, or you obtained Your Submission in a lawful manner and (z) our and our sublicensees’ exercise of rights under the license above will not violate any person’s or entity’s rights, including any copyright rights. You agree to provide us such assistance as we may require to document, perfect, or maintain our rights in and to Your Submission.
Writing good advertising sales copy (copywriting) is the other important skill for internet marketers. The good news is that when it comes to affiliate marketing, many vendors will provide you with copy to use for your blog posts, websites ads, etc. They'll give you the emails to send, the banner ads to display, and even posts you can use on social media (such as Facebook, Twitter, LinkedIn, etc.).