Affiliate Marketing
Affiliate Network
An affiliate network is a network of individual webmasters to one side (also called publishers) and online advertising companies (also called merchants) on the other side. Because the advertisers (the companies) cannot maintain contact with hundreds of individual webmasters, they provide their ads
through affiliate networks, which are intermediate companies. As a webmaster can choose which ads which providers you want to place on your website. The affiliate network company keeps track of clicks and leads and pays the webmasters and bills the advertisers. Ofcourse they have their own margin in between.
Affiliate marketing
An affiliate is a webmaster who publishes ads from an advertiser on its website through an affiliate program. But how does that work?
An advertiser, such as an insurance company would like to attract visitors to a certain productpage. This could be the company website, but also a response page or landing page. To get traffic to this site, the ads (text or banners) placed on websites that people ,that are in the target group of the product, visit.
For example: a product such as a mortgage has a certain target group, such as ‘young families’. This target group visits various sites on the Internet that fit their lifestyle and interests, such as MySpace. The advertiser would like to place ads on these sites so that visitors to these sites are guided through ads to the site with the productoffer.
The advertiser now offers through an affiliate network these same ads to the affiliates (webmasters), so that these ads can be placed at many more appropriate sites.
Banner
A banner is a graphic advertisement on the Internet. By clicking on a banner the visitor is redirected to a page where more information can be found.
Cookie
Cookies are small information files (. Txt files) that a server sends to the browser and is locally stored on your PC. The intention is that this information is returned to the server during a subsequent visit to the same website. A cookie is stored on your PC (depending on the settings of your browser). Just look in your browser or your settings you want. In IE7: Tools> Internet Options> Browsing History> Settings> File View.
Through cookies can easily information on the Internet user maintained. The downside of cookies is that this information may be private. Cookies are therefore controversial.
In affiliate marketing cookies are used to detect that when a visitor at a later time converts to a lead or sale, the commission can be rewarded to the website from which the 1st visit occurred. A visitor can visit a website or an online store, than further surf to other websites, and then at a later time still decide to buy again on the 1st site. For the website owner of the 1st visit which took place would not be fair if the subsequent purchase would not lead to a reward / commission for the webmaster. Using a cookie, this is possible. It is not uncommon that a cookie stays active for a long as 30 to 100 days. However, when the PC owner removes the cookies, some have this automated when closing the browser, then the visit is no longer identifiable.
CPC (Cost per Click) or PPC (Pay per click)
CPC / PPC is an advertising model used on search engines, ad networks, content websites and blogs, where advertisers only pay when a user / visitor clicks on an ad and thus effectively a visit to the website of the advertiser.
CPL (Cost per Lead) or PPL (Pay per Lead)
This advertising model is increasingly used as advertisers realize that they have only few visitors to their website. By CPL / PPL the webmaster will be paid (a higher amount than PPC) if the visitor converts into a lead. A lead may be an application but also a brochure request or subscribtion to a newsletter.
CPS (Cost per Sale) or PPP (Pay per Sale)
In this ad model, the webmaster is only paid if the visitor actually makes a transaction, such as the purchase of an article in a webshop. The webmaster can pay a fixed amount per transaction or a percentage of the purchase amount.
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