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• Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts.

• It consist of 4 core players namely :

1. Merchant

2. Network

3. Publisher

4. Customer

• Affiliate marketing relies purely on financial motivations to drive sales.

TYPES OF AFFILIATE MARKETING

•Pay per performance

•Pay per sale

•Pay per lead

Advantages of affiliate Marketing — Online merchants get free ad space and will only pay for proven results (pay per sale, pay per click, pay per lead).

— Affiliates, on the other hand, require only an ad-space to promote the merchants’ products, and thus can enjoy watching the beautiful sunset while earning cash.

— Advertisers can promote a product to a vast audience, giving their brands more exposure and recognition.

CONT...

— Marketers can collaborate with affiliate networks and can pretty much take care of the execution stages, giving the merchant little to no bother during the procedure.

— Consumers that come from the affiliate’s site can provide important information concerning the latest trends and demands

Disadvantages of affiliate Marketing

— False advertising on the affiliate’s website can destroy a merchant’s reputation. More and more affiliates are engaging in this kind of scheme.

— Merchants can suffer from commission costs. Set up and maintenance can also mean more cash outflow for the merchant from having too many affiliates.

— Affiliates risk not getting paid. The twisted merchant may simply leave and close down the program without paying the affiliate.

CONT...— Some affiliates are tricked into a program where they can get high commissions and then get less than what the merchant has actually promised. Some programs require the affiliate to give cash for membership.

— There are also some unscrupulous individuals who hijack affiliate links, stealing their commission in the process.

— With its high payoff potential, affiliate marketing has also become a target for scammers and devious individuals wanting to earn from other people’s hard work. These people simply take advantage of the internet’s mask of anonymity.

Case studies

LifeProof Case Study