What Is Affiliate Network Marketing?

The 1990’s are remembered for many things including grunge music, Jim Carrey films and the emergence of the World Wide Web. The emergence and rise of the World Wide Web gave companies and businesses all over the world to market their products and services to millions of consumers over the internet. This was furthered by the emergence of search engines that made it possible for people to look for information online as well as grow online businesses. With this, came the emergence of online marketing like CPM, fixed placement and affiliate marketing emerged.

Nevertheless, what exactly is affiliate network marketing? In summarized terms, affiliate marketing is a co-ordinated relationship between an advertiser, publisher and consumer. Advertisers consist of the parties that are willing to pay others to promote and sell their products. Publishers promote advertisers’ products and in exchange are paid in commission by the advertisers. Consumers are people who see a publishers and react by buying the product advertised by publishers, a process which commonly known as conversion in the online world.

Affiliate network marketing highly depends on cookies to work. A cookie is a technology that works with web browsers to store information such as passwords, log in details, shopping cart contents etc. When it comes to affiliate marketing, the main duty of cookies is to remember what ads or links a visitor to a website clicked on. When a click is made on an ad, the CJ cookie tracks the advertiser, publisher, specific creative and commission amount. This information is stored in what is known as a parameter. 

Depending on the type of affiliate program, there are different ways through which publishers are paid for their efforts in promoting advertisers products. There are three main types of affiliate programs, which include pay per sale, pay per click and pay per lead. 

In pay per sale affiliate program, a publisher, also known as an affiliate, sends an advertiser a client who purchases something. Some advertisers pay a fixed amount of money for every sale while others pay a percentage of the sales money to the affiliate.

In pay per click programs, affiliates are paid depending on the number of clicks on an ads link to visit the merchant website. Whether or not a visitor ends up purchasing something is not really a main concern here. 

Pay per lead affiliate programs pay their affiliates based on the number of visitors who end up signing as leads. To become a lead, a visitor is required to fill some information on the merchant site and this information is used by the advertiser as sales lead or sold to another advertiser as a sales lead.

There are other types of affiliate programs including two tier programs, residual programs and pay per impression programs. It should be noted these are not the only type of affiliate programs. This is mainly because advertisers come up with new affiliate programs that suit their needs without necessary adhering to the above rules. 

Affiliate network marketing has been able to benefit online businesses in various ways mainly because they only pay once effective results are achieved. However, affiliate marketing becomes a huge loss for a business if the money used to set up an affiliate program is more than the returns acquired from it.