Affiliate marketing is a beneficial arrangement between a publisher and an advertiser. At its core, affiliate marketing refers to business transactions that result from financial relationships between the advertiser and the publisher. More specifically, it’s when advertisers acquire new business from the publisher.
A publisher can earn commission through a number of ways, such as when a new customer visits, signs up for a service, or purchases an item from the advertiser’s business. Because publishers only earn when advertisers receive business, publishers are eager to push ads, making the arrangement convenient and beneficial for all parties.
Consumers are probably more familiar with affiliate marketing than they realize since they encounter it on a daily basis through blogs, customer loyalty programs, and coupons.
Option One: Blogs
The first and simplest form of affiliate marketing occurs when internet bloggers place ads on their blogs and encourage readers to view them. Bloggers then earn money from the advertisers on a pay-per-click, pay-per-lead, or pay-by-sale basis.
Pay-per-click means that the publisher will receive a fee for each reader who clicks on the advertisement. Pay-per-lead means that the publisher will receive a fee for each reader who completes an action that generates leads for their partner to follow like when readers complete a survey or sign up for a newsletter. Pay-by-sale means that the publisher will receive a fee for each reader who purchases an item or service from the advertiser and cites the publisher as a referral source.
Option Two: Customer Loyalty Programs
Customer Loyalty Programs are a more extensive affiliate marketing option that help both parties acquire new business. If both establishments link their loyalty programs and use each other as a partner, both the advertiser and the publisher walk away with new business and the customer will receive incentives in the form of savings and discounts.
An online example of a customer loyalty program would be a credit card company offering their customers special savings at various retailers for shopping through the credit card portal and using their credit card. Credit card companies earn a commission for each completed transaction and then use part of their commission towards savings for the credit card holder. Everyone benefits: the credit card company earns customer loyalty, the customer receives a special discount, and the advertiser (retailer) gets a sale!
Option Three: Coupons
Mutually beneficial marketing campaigns may also take place through coupons. An online publisher may offer consumers incentives if they perform certain tasks. For instance, if consumers purchase subscriptions to the online publisher’s material, the publisher can offer coupons for a certain retailer (their business affiliate) as a reward.
By offering special coupons toits consumers, a publisher offers incentives for subscribing to their material, while also providing opportunities for the advertiser’s business. Because the coupon codes remain unique to the publisher, the publisher receives sole credit for each coupon transaction.
Want to Learn More?
Inuvo is the leading provider of marketing solutions that help advertisers drive targeted transactions and acquire customers either on a pay-per-click, pay-per-lead or pay-per-sale basis through various marketing channels. The Inuvo Platform is the data hub for all of their transactions, products and services.
This solution gives advertisers the power to create and manage their own campaigns and provides web publishers with more effective ways to monetize their advertising inventory. For innovative solutions to your marketing needs, call Inuvo at 727-324-0211 or visit www.inuvo.com today.
Heather Preston. Customer Loyalty Programs – Customer loyalty programs retain customers, preserve revenue, and create new opportunities. Enhance an existing loyalty program today or create one from scratch with BargainMatch from Inuvo
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