Affiliate program definition

30 March, 2017

When you want to promote your product/ service, affiliate marketing is one of the best channels for you.

Below listed a few definitions of affiliate marketing that will help you set an affiliate program and understand the affiliate industry. Affiliate marketing is one of the biggest channels in the on-line marketing industry.

As a product/service owner (or reseller) your title will be "advertiser" or "merchant". Your job is to set an affiliate program and recruit as many affiliates as possible to the program in order to promote your product.

When you set your affiliate program you must choose the best business model that will help you promote the product and will be worthily for affiliate. Affiliates get paid a commission for their efforts. This commission is also called payout.

There are a few business models for affiliate programs:
CPL: cost per lead
CPC :cost per click
CPM: cost per impression
CPA: cost per action CPS: cost per sale will be % from sale amount PPC: pay per call Hyb: combined models such as CPL + CPS

The affiliate is called also "publisher" and his role is to promote offers or affiliate programs.

In order to track the affiliate's activity and to track his traffic which converted into a commission, you must use an affiliate software or open a merchant account at an affiliates network or both.

Please make sure that no matter which business model you chose, the most important thing for the affiliate is EPC: earning per 100 clicks. If you pay for advertising you want results and ROI. Affiliates want also ROI for their traffic.