The history of affiliate marketing began four years after the creation of the Internet. Initially, it was associated primarily with companies in the field of erotic websites, file download services and gambling. In short, sites that could not be promoted in the traditional ways, such as banner advertising.
However, two years later, in 1996, Amazon launched its affiliate program, raising awareness of the benefits of affiliate marketing to the general public. Partner marketing, of course, attracted the attention of online store operators, and affiliate marketing quickly began to be perceived as a serious performance marketing channel.
What a commission can be paid for
Affiliate marketing is used for all conversion actions that a visitor performs on the website. It just has to be reliably measurable. Therefore, it does not necessarily have to be only the sale of products on the e-shop, but also, for example:
- sending a request for service
- download demo version of the program
- registration in any tool
- gaining lead (contact to the customer)
- Clicking on a link or element on the web
The amount of commission
The amount of commission in affiliate programs usually ranges between 1 and 30%, depending on the type of products sold. For common consumer products, the commission is around 5 to 15%.
Sometimes affiliate marketing is used at the same time as the PPC model, i.e. the advertiser pays the partners commissions for completed transactions and also pays in the form of PPC for visits. In general, however, the market is gradually moving away from this combination, as some affiliate partners tend to abuse it. To make money, they intentionally drive irrelevant traffic to the advertiser’s site, people who have no potential to buy a product or service at all.
How affiliate marketing works
An advertiser who wants to promote their products or services will create an affiliate program. Affiliate partners who register the advertiser then register for it. Those on the program website will receive their unique identifier (so-called partner ID). This will then mark the links from their sites to the advertiser’s site. Evergreen Wealth Formula is the best option here. Make a visit to james-scholes.com/evergreen-wealth-formula-review to understand the whole process.
The affiliate link can look like this
If a visitor clicks on the advertiser’s website via such an affiliate link, the advertiser will recognize it according to a unique parameter and assign it to the given partner. Then mark it with a cookie , ie. saves a small file with a partner identifier, click date, and other information to your computer. When this visitor then buys or otherwise converts something (he fulfills the given goal), the affiliate system reads the content of the cookie again and credits the relevant partner with the agreed commission.
Therefore, the partner can promote the advertiser not only on his website, but also on third-party websites, in discussion forums, on social networks, or by sending a newsletter. Since the visitor still carries with him the previously created cookie, it will of course work even if the visitor buys with a delay, for example during one of the next visits, when he no longer comes through the affiliate partner’s link. Even so, the commission is credited to the partner.