Affiliate marketing or sales collaboration service is one of the best ways to make money online. The affiliate marketing industry has grown by an average of 10.1% per year since 2015 and has been projected to reach $ 6.8 billion by 2020. 90% of advertisers consider affiliate marketing to be an important part of their digital marketing strategy. In this article, we will talk about the affiliate marketing industry, various payment methods as well as strategies for success in affiliate marketing.


Affiliate or affiliate marketing is?

Affiliate marketing is one of the marketing methods that can have a direct impact on product sales. In fact, this type of marketing is done by people outside the business. Simply put, in affiliate marketing or commission marketing, an offer to buy or introduce a product is placed on the affiliate publisher’s website or blog, and if these advertisements lead to the sale of the product, an amount is paid by the product owner to the affiliate publisher who marketed the product. Paid.

In affiliate program programs, goals and indicators are considered to measure the effectiveness of advertising. These metrics can be the user clicking on an ad link, purchasing a product or entering an email by the user. Then, if the ad on that site is effective, a fee will be paid to the site owner based on the amount of sales or other methods. Here’s how to put one together for use with your publisher. Affiliate marketing is also called payroll marketing.

How does affiliate marketing work?

Consider an online store. This store (called the merchant) can increase the sales of its products by using affiliate marketing. The merchant connects with sites that want to monetize the product. These sites, called affiliate marketing publishers , offer visitors a product by placing banner or text ads on their site and linking to the merchant site. If a visitor clicks on a link and makes a purchase from that site, the merchant will pay the advertiser. This amount can be a specific amount (to subscribe to the newsletter or download products) or a percentage of product sales.

Another noteworthy point is that if a visitor clicks on the affiliate link but does not decide to buy at that moment and later buys the product or similar product by visiting the site, according to the information recorded by the cookies of the merchant site and the affiliate publisher, The purchase is registered through the introduction of the affiliate publisher and the amount of the sale is paid to the affiliate publisher.

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In fact, the affiliate marketing industry consists of three groups:

  • Merchant or vendors: merchant business owners are the product for sale and plan to sell their product affiliate connection with the network.
  • Affiliate Marketing Publishers:  Those who own websites or blogs and want to introduce products to their website audience and make money by placing affiliate links or banners.
  • Users:   Those who click on affiliate links on the publishers’ site and buy the product.

Types of affiliate marketing programs

Different programs in affiliate marketing can be implemented according to different payment methods. Depending on your goal of affiliate marketing, you can use different types of affiliate programs.

Pay Per Sale (CPS) 

Pay per sale is the most popular and main type of payment in affiliate marketing. In fact, the foundation of affiliate marketing was initially laid with this payment method. In payment for each sale, payment is made to the advertiser after the customer’s purchase process is completed. In the simplest case, the last click to buy, which is usually the click on the “Final Registration” or “Payment” button, is considered as a criterion. The amount paid for each sale in each industry and business is different. Larger merchants usually pay less and pay up to 4% of sales to the affiliate publisher. But for small advertisers, the payout can be as high as 10%. This type of payment is one of the most common types of payments in affiliate marketing due to its low risk.

Pay Per Capita

If your goal is affiliate marketing lead acquisition, you can use the payment method to attract potential customers. In this method, if a user clicks on the affiliate link and enters his contact information and email on the site or landing site of the advertiser, a fee will be paid to the affiliate publisher. In some industries, such as the automotive industry, it is not possible to have a paid marketing plan for every sale. Because it takes time for the user to get acquainted with the products and choose a product to buy. For this type of goods, using the payment method in exchange for leads is a good method.

Pay by ad display (CPM )

CPM, which stands for Cost Per Mile (CPT: Cost Per Thousand), is one of the pricing models in advertising. The term is commonly used in advertising networks and means paying for advertising. More precisely, in this model, payment is made for every thousand impressions that happen to your ad. But despite the fact that the ad is viewed a thousand times, the number of clicks may be much less than this number, and this is not a strange thing.

Pay Per Click (CPC )

CPC, which stands for Cost Per Click or (PPC: Pay Per Click), is another common model of pricing in advertising. In this model, the affiliate marketer receives money when a visitor to a website or online store clicks on an ad link he or she has placed. In a clearer sense, in this model, payment is based on the number of clicks.


Comparison of Pay Per Click (CPM) Pay Per Click (CPC)

At a stage of marketing where brand awareness is a priority for the business, using a pay-per-view (CPM) affiliate program is a good idea. Of course, paying per click is less risky than paying per view. This means that even if your goal is to increase brand awareness, it is better to choose the CPC method. But we know that clicking does not mean buying a product. But it is a good criterion for measuring brand awareness.

Fixed tariff payment

This means that in exchange for placing an ad and a link on the publisher’s site, a fixed amount is considered for him. If you plan to use this method, it is better to use this method in combination with other payment methods and of course, the fixed tariff is less than the other method.

The Advantage of Affiliate Marketing for Advertisers

Some small businesses do not consider affiliate marketing to be appropriate for their advertising. While affiliate marketing is one of the most effective ways to achieve marketing goals and is one of the high ROI methods in marketing. Because you, as an advertiser, only pay for affiliate marketing when you get the results you expect. This is why this type of marketing is called risk-free marketing. You also do not need any capital or initial payment to start affiliate marketing. That’s why this marketing is also suitable for small businesses.

Reagent Marketing Advantage for Advertising Publishers

Publishers see affiliate marketing as a great opportunity to sell products without the need to produce or store products. The amount of revenue from affiliate marketing depends on the following:

  • The efficiency and reliability of the advertising network you work with.
  • The amount of money you receive for advertising goals as well as the conversion rate of the links you place on your site.
  • The more you know about your site audience, what products they like the most, and what products are more likely to be bought on your website.

Why do businesses not succeed in affiliate marketing? Tips for Success in Affiliate Marketing 

Many people and sites active in affiliate marketing have big goals to earn and try hard to succeed. But to earn a good income from affiliate marketing, you need to know various skills such as SEO, website design, and copywriting, or you need a team that optimizes your site to achieve results in affiliate marketing. In the following, we will state the general and important points to achieve the goals of the affiliate program.

Get to know your audience.

The most important point for success in affiliate marketing is to know the audience to introduce the most appropriate product to them. Most people who are new to the affiliate marketing industry. They put every kind of popular and best-selling product on their site and blog. Placing different products regardless of the subject of the website and the interests of the audience, in addition to reducing the efficiency of affiliate marketing, also reduces the website traffic.

It is better to introduce products on your website that are related to the topic of your website. For example, on a website with a digital marketing theme, printer sales ads (arguing that everyone needs a printer and may buy one) are not a good idea for affiliate marketing. This is because your audience does not think about the printer or any unrelated needs when reading the content of the website, and this leads to ad blindness.

Therefore, it is good to know the contacts of your website and offer products to them according to their interests and needs.

Publish quality content on your site.

Success in affiliate marketing depends on increasing website traffic. Continuous content production also improves site SEO and increases website traffic.

To increase website traffic, we suggest you read the article on ways to increase website traffic.

Content production should be relevant to the topic of the website and the interests of your audience in order to find a regular audience. What drives website traffic should not be the first-time visitors to the site. In fact, by improving SEO, we introduce new visitors to our site and turn it into a regular audience for our website with useful and valuable content.

Be honest in affiliate marketing.

Always offer products on your site that you believe are useful and quality. Be honest in introducing the product and do not exaggerate the product description. In fact, it is the loyal visitors who keep the traffic to the website. Exaggerating or introducing a poor quality product can cause the audience to lose trust in the website. You will then lose those contacts, and this will affect your website traffic as well.

Post a video about your product.

Audiences like to see it before buying a product. Video release gives a better view of the product. It also helps the audience review the product faster and make a decision. Because reading long texts, even when buying a product, will be tedious for everyone. Do not forget to have a suitable sentence at the end of the video to call for action or CTA to encourage the audience to click on the affiliate link.

What affiliate marketing strategies should you use in 2021?

  1. Only recommend products that you are completely familiar with

In affiliate marketing, building trust in your audience is very important and the fastest way to destroy trust is to recommend a product that you have never used before or that is not suitable for your audience. Also, you should never tell someone directly who buys the product, you should only recommend the product. The more useful you are and the better your recommendations are, the more likely it is that your web visitors will return to your website to use your expertise.

  1. Advertise the products of different stores.

If you only advertise a merchant, you will be limited to landing pages and their conversion rate. It is important to work with different vendors whose business areas are relevant to you and to promote a wide range of products. This affiliate marketing strategy will create diversity and a steady income for the affiliate website.

  1. Constantly test and optimize your conversion rate.

Suppose you have an advertising page in which you advertise a product through affiliate links. If you currently receive 5,000 visitors at a conversion rate of 2% per month, you have 100 visits. To get 200 visits to the site, you can focus on gaining more than 5,000 visitors or simply increase your conversion rate to 4%.

Which one seems simpler? Instead of spending months building your Domain Authority or trying to attract organic traffic by blogging and publishing guest posts, you just need to increase your conversion rate by 2%. This can be done by doing things like optimizing the landing page, testing call-to-actions, and using a conversion rate optimization strategy. By experimenting and optimizing your site with less effort you can get better results.


  1. Focus on your affiliate traffic

It is important to know where your site traffic comes from and what your audience is like. This helps you personalize your messages and makes you recommend the best products. You need to focus on the site’s traffic sources and the audience that sees it. Traffic sources can include organic, paid, social media, referral, show, email, or direct traffic.

You can see traffic sources in Google Analytics. These resources include page retention time, return rate, location, age, gender, time of day, login devices (mobile, desktop), and more. This information will help you focus on getting the most out of your traffic. This analytical data is very important and useful for making informed decisions, increasing conversion rates, and further sales through affiliation.

If you have any experience or tips in affiliate marketing in mind, you can share them with us in the comments section.