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? What is affiliate marketing?

Affiliate marketing involves offering your product or service to publishers (also known as affiliates) to promote on your behalf. In return, you pay a commission for every sale the publishers make. As a performance-based marketing method, you only pay for results.

? What is an affiliate program?

An affiliate program refers to the package you create for your product, which is then made available to potential publishers. The program will generally include details of the product, the retail value of the product, commission levels, and promotional materials. Many affiliate programs are managed via an affiliate network like Rsed, which acts as a platform to connect publishers and advertisers, but it is also possible to offer your program directly.

? How do affiliate networks make money? 

Affiliate networks make money through fees charged to the merchants, also known as advertisers. These fees are agreed to with each individual advertiser and are usually paid as a percentage of each sale made.

?Are affiliate marketing and performance marketing the same thing?

Performance marketing is a method of marketing that encompasses different price structures, dependent on the performance of the ad. Examples include how many times the product is viewed or clicked, or how often a sale is made. It includes methods like pay-per-click or display advertising.

Affiliate marketing is a form of performance marketing as commissions are paid on performance, which is generally when a sale is made.

? Is it possible to promote affiliate offers on mobile devices?

Smartphones are essentially computers in miniature, so they can display the same websites and affiliate offers that a PC can. However, mobiles also have specific tools not-so-readily available on computers, and these can be used to good effect for publishers.

When setting up an ad it can be optimized for mobile users, making it easy for this audience to access the offer. Publishers can also make good use of text and instant messaging promotions. As the mobile market is predicted to make up 80% of traffic in the future, publishers not only can promote on mobile devices but they are missing a big trick if they are not.

? What is a super affiliate?

A super affiliate is someone who has built a thriving and influential affiliate business and consistently drives a large majority of the sales from any program they promote, compared to other affiliate partners involved in the program. They make a large income from affiliate marketing, which is usually in the range of five or six figures.

? What is an affiliate disclosure statement?

An affiliate disclosure statement reveals to the reader that there may be affiliate links on the website, for which a commission may be paid to the publisher if these links are clicked and a sale is made. For more guidance on the disclosure statements needed in the US, please click here.

? How do we deal with non-compliance issues?

The easiest way to deal with unscrupulous behavior is to sign up to an affiliate network and publish your program on the network’s platform. Networks are skilled at compliance monitoring, which helps to prevent potential issues arising. Learn more about compliance in affiliate marketing and Awin’s compliance team.

? How do we track publisher sales activity?

Every publisher has a unique publisher ID, which is used in tracking cookies to record which publisher generates what sales. This activity can then be viewed within the affiliate network dashboard.

? Is social media activity an important part of affiliate marketing?

Publishers promote their programs through various means including blogs, websites, email marketing, pay-per-click and social media posts. However, social media has a huge interactive audience, making this platform a good source of potential traffic.

? What are the advantages of this type of marketing?

Because affiliate marketing only pays out commissions on sales, there is minimal risk that promotions will not generate ROI. It also exposes your product to new audiences, while tapping into the different skills of your publishers. Budgets are easy to manage and maintain due to the visibility and transparency the channel offers. If you use an affiliate network, managing your program is straightforward, including dealing with returns and customer service.

? What are the disadvantages of this type of marketing?

If you decide not to use an affiliate network, managing your affiliate program can be time consuming. You will also need to be much more aware of compliance issues if you go it alone. Additionally, It can be challenging to build a team of loyal publishers who promote your program long term.

? How much growth is predicted for the affiliate industry?

Data gathered in 2018 showed that affiliate marketing spend in the UK has increased by 15% while in the US it is predicted to grow by 62% from 2015 to 2020. A 10% annual growth on spend is expected to continue.

 

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