Types of Affiliate Marketing

These past few years has seen a lot of evolution as regards information technology. Key among the areas is internet marketing and in particular affiliate marketing. The reason for this new surge I a new model in marketing sis because many people have no realized that they can improve their businesses by engaging in marketing through the internet. The internet has provided a platform with which many people are able to expand the scopes of their business by a great margin. As a result, many can now reach out to markets they only dreamed of before. If you look at the market as it is currently, you will realize that affiliate marketing now plays a major role in major business across the globe. This therefore will necessitate the need to understand what affiliate marketing is all about in context.
Affiliate Cash
Pay-per-click marketing
There are different forms of affiliate marketing. Each and every one of these types operates with closely related principles. The first and foremost of these is what is commonly known as pay- per- click marketing. This is perhaps the most popular form of affiliate marketing among those businesses with smaller websites. It is also among the easiest ways to earn money on the internet. It involves a strategy where the webhost places links on the website. These links often lead the website that contains information on the products of the client in question. What happens is that each time a shopper clicks on these links the affiliate earns commission. The commission is therefore paid as per the number of guests who visit the site and clicks on the links. Even though this may seem like a very easy and straight forward way to earn money, the commission is usually small compared to the rest of the affiliate marketing techniques.

Pay-per-sale marketing
This is another common type of affiliate marketing today. This type of affiliate marketing works more or less in the same way as pay-per-click only that the client only pays the affiliate on the number of sales that are made successfully. So in the same manner as the former, the affiliate places the advertisement on their website with a link to their client’s website. The customer will in turn click on the link and follow it to the customer’s products, but then the commission will only be paid if the customer decides to make purchases on the products successfully. The beauty of this type of affiliate marketing is that the commission is usually relatively substantial in comparison to the former. There are some great programs available that teach you how to do this type of marketing, such as Commission Checklist.

Pay-per-performance marketing
This is yet another type of affiliate marketing and by far it is one of the highest paying in the industry. In this case the affiliate only get to earn a commission if the action he engages in translates into a response by the shopper in say- a purchase made. The purchase in this came will refer to any product within the company’s line of products irrespective of the product advertised by the affiliate. The commission in this kind of marketing is usually in the range of 10%- 15% which by market standards one of the highest there is.

Pay-per-lead
This is normally used by companies that offer services such as banks, insurance companies and other none bank financial institutions. This basically works with the principle that the affiliate gets to be paid if the customer gets to fill out the details thereby making him a client of the companies in question. This take as a longer time when compared to the rest of the types of affiliates marketing but the reward is often worth the time. This type of program can be leveraged in many different ways. One you might not expect is through Facebook, using software like FB Echo.

Partnership To Success Through Co-Branding

Co-branding is known as combining several brands into one service or product. Companies engage themselves in co-partnering in order to leverage into a strong brand. This kind of business practice is becoming very popular nowadays as companies strive to have a positive relation between various brands which may develop synergy. Such a strategy if well executed may lead to a win-win situation for both partners. It can also help in realization of untapped opportunities or unexplored markets.

Many firms form partnerships in order to fulfill certain goals such as; expand the customer base quickly respond to the customer’s need, for financial benefits, operational benefits,  creation of new client perceived value, have a strong picture for new products and to strengthen their competitive position.

In this kind of alliance, all partners should have good relation which has the ability to commercially benefit all the parties. A co-partnering agreement should include obligations restrictions and rights which are binding to all parties. All these should be drafted carefully so as to give clear and understandable directions to the partners involved. The agreement should also contain explanations regarding the marketing strategies, confidentiality issues, warranties, royalties, disclaimers, payments and brand specifications.

This approach gives opportunities for growth in already existing or exploring untapped markets.  An example of a powerful example can be found here: Partnership To Success Bonus. In these types of alliances, firms combine their services or products in order to develop new offers to their customers. Returns and risks are very important aspects that must be considered.  Cooperation and organization of top managers is very important for the success of the agreement.
John Thornhill

Co-branding brings several benefits to the alliance partners which include:

  • Increased sales: Once the businesses come together, the sales increases as customers get to see or find different products under one company.
  • Exploration of untapped markets with very little expenditure. Customers of a certain product get to see or learn about other services of products from one source. This promotes them to buy as they do not have to spend more time trying to look for that particular item from somewhere else.
  • Ability to access new financial sources. Since companies are able to combine resources; those which are not financially stable benefits from the strong the already established companies.
  • Risk sharing: Unlike in single business operation co-branding benefits partners as they share the risks which would come along. This means there will be no much to lose and still you would benefit from sharing ideas of how they can improve on their marketing strategies to avoid future loses.
  • Companies are able to get higher prices for the worthiness added by brands which are joined with it. This comes when a company partners with more recognized partners who are already established in the market.
  • It also increases client’s confidence on the services or products. New or small companies enjoy customer confidence especially if they partner with a big firm which has already made its name in the market.
  • Increased exposure and coverage from group advertising.