18 May Affiliation: The advertiser’s Duties
Affiliation, performance marketing, is a very important lever for the turnover of e-commerce sites.
Well accepted in the mores of webmasters, it helps develop advertiser sales while remunerating webmasters. A good compromise, based on performance.
What is affiliation?
Affiliation is a relationship between an advertiser (affiliate) and broadcasters (affiliates, webmasters) based on performance.
To simplify things, an advertiser makes banner ads available to affiliates so that they can display them on their website.
The remuneration of affiliates is (generally) not based on clicks or the number of views, but on the sales generated through their site.
Each sale generated on the advertiser’s site by a customer from site A results in the payment of a commission to the webmaster of the latter site. The affiliate is in effect a business provider for the advertiser.
The different types of affiliations
The CPA (Cost Per Action)
The most popular form of membership is CPA. Each act (sale in general, or completion of a form) is remunerated, either by a commission as a percentage of the basket or by a fixed sum.
The CPL (Cost Per Lead)
This type of compensation is generally used in recruiting campaigns, for signing up prospects for newsletters, or for participating in free contests or online surveys. Costs vary greatly depending on the sector and the qualification required.
Webmasters are paid according to the number of forms completed (sometimes with an option on the opt-in).
White label affiliation
The advertiser provides its affiliates with a ready-to-use store, either on a subdomain/subdirectory of its own site or on a domain that belongs to them. Each sale generates a commission.
Hybrid deals (CPC, CPA, CPL, RS)
Affiliate campaigns can combine different types of compensation: CPC + CPA, percentage on sale + fixed amount for newsletter subscription (CPL), etc … The possibilities are numerous, and the difficulty lies in balancing attractive remuneration for webmasters, and ROI.
In the context of gambling, deals can incorporate the notion of Revenue Share (RS). This is a rate based on the losses, wins, or deposits of the players your affiliates have recruited. This can be combined with compensation at the CPA.
The duties of advertisers
While affiliation is a simple way to get traffic to your website, it is important to convert these visitors into customers.
Therefore, if the affiliate sets his financial terms, he must also do everything to ensure that prospects buy when they arrive on the site.
Set attractive commissions
The first point to look at is the commission that will be granted to webmasters. This must be sufficiently attractive to recruit a good number of sites with themes close to or complementary to the campaign in question.
The audience will then be qualified, and therefore the transformation potential of each visitor will be greater. If the commissions are attractive, your banners will be better placed than those of your competitors on the same site.
Set up different levels of compensation for your affiliates to involve them more and reward their promotional efforts. They are partners, not suppliers!
Develop compelling visuals
There are multiple media in affiliation: text links (predefined or generic), image banners, flash banners, transparent flashes, page curl, mini-shop, white-label shop, promotional codes, etc …
These are all possibilities that are offered to affiliates to promote your campaigns, and above all, as many entries points to your site.
So take care of these visuals to get a good click-through rate (CTR). They must
- be catchy,
- not look like a garland,
- reflect what the visitor will find by clicking,
- call to action
Convert leads into customers
This is the focal point of your affiliate campaign: conversion, for two reasons:
- your turnover depends on it
- your return on investment depends on it
- your reputation as an advertiser depends on it
For the board, I think I don’t need to explain. For ROI, if your affiliates notice (and they still notice) that the visitors sent to the site did not generate any commission, then they stop running the campaign, and all investments are lost.
The information is also posted on dedicated forums, so you will have fewer partners.
It is, therefore, necessary to work on the landing pages and the conversion funnel to make them as efficient as possible, and thus generate sales.
If your affiliate program is successful, word of mouth between webmasters will allow you to recruit many other affiliates who will participate in the growth of your turnover.
Animate the campaigns
Last point, it is important to animate your affiliate campaigns with events, new visuals, new promotion codes.
Your affiliates will not forget you and this will be an opportunity to implement the new strategies resulting from the analysis of your previous campaign.
Do not hesitate to communicate with your affiliates, life or through the affiliate platform, the link is important in these kinds of relationships.
Also, organize inter-affiliate challenges with bonuses or gifts for the best. This allows you to recruit affiliates and boost your sales through a promotional effort from your partners.
How to start an affiliate campaign?
You have the choice to make your own affiliation (direct affiliation) or to go through an affiliate platform. Choosing a solution will depend on your internal resources.
Direct affiliation requires work and investment in addition to visuals and animation. Going through a platform simplifies things and also allows you to benefit from their affiliate experience.
Platforms usually take a lump sum and commission on commissions generated by affiliates. Finally, note that it is possible, with some platforms, to only use their tracking solution.