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What is Affiliate Marketing?
Affiliate Marketing is a big word, loaded
with meaning but it simply means
marketing the products of a firm that you
are associated with.
Affiliate Marketing is a performance-
based marketing channel where the
business rewards the affiliate for every
visitor or a customer brought about by
the affiliate’s own marketing efforts. INDUSTRY
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Affiliate Marketing
Process
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Why is it critical for an Affiliate?
1. Low Investment Budget
2. No Need For Inventories
3. Passive Income Through Leverage Strategy
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Affiliate Eco-System
1. Publisher/Affiliate
2. Affiliate Network – marketplace
3. Merchant – runs the program
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Types of Models the Affiliate Programs consist of.
1. CPA – Cost per Action
Here, the merchant site pays an affiliate only when a customer referred by an
affiliate makes a purchase.
2. CPL – Cost per Lead
Companies with these programs that adopt this model pay their affiliates
based on the number of visitors they refer who sign up as leads.
3. CPC – Cost per Click
INDUSTRY
In this model, the merchant site pays the affiliate based on the number of
visitors who click on the link to come to the merchant’s site.
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9. BigRock
4. CPM – Cost per 1000 Impressions
This refers to the cost of internet marketing campaigns where advertisers pay for
every 1000 times their ad is displayed, usually in the form of a banner ad on a
website, but can also refer to advertisements in Email advertising.
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10. BigRock
Pros & Cons of the Affiliate Models :
• Companies which do not have reliable tracking systems to monitor actions have
difficulties managing cost per acquisition affiliate programs. Several affiliate
networks specialized in cost per action advertising can help overcome these
challenges.
• CPL (Cost-per-lead) is based on the consumer completing a form (such as
subscribing to an email newsletter). CPL has a lower financial risk for the
Advertiser, compared with CPM (Cost per Thousand impressions) and CPC.
• CPC (Cost-per-Click) pricing models, commonly found on search engines,
compel advertisers to pay for clicks from people that might never sign up on the
advertiser landing page.
INDUSTRY
• In a CPM (Cost-per-Thousand) pricing model, advertisers are forced
to pay for wasted impressions.
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Tracking mechanisms in the Affiliate Marketing Process :-
Cookie period :
An Affiliate Cookie is alive for a time period as specified by the merchant. BigRock has
a 90 day cookie period as compared with the other Affiliate Marketing programs which
usually have a 30-60 day cookie period. This makes it easier for the affiliates to earn
commissions on sales that happens within the cookie period.
Affiliate code :
An Affiliate Code helps to identify when transactions take place. The Affiliate Code
acts as a piece of information passed everytime a visitor completes an action
specified by the merchant. Most affiliate codes are placed on the order completion
page of the Merchant’s website.
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13. BigRock
Simply put, affiliate programs are arrangements in which an online merchant
Web site pays affiliate Web sites a commission to send them traffic.
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These affiliate Web sites post links to the merchant site and are paid
according to a particular agreement.
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Recruiting affiliates is an excellent way to sell products online, but
it can also be a cheap and effective marketing strategy; it’s a good
way to get the word out about your site.
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