Topics in Technology and Marketing Drive Marketing Affiliate

What is affiliate marketing? CPA – cost per action Commission-only sales force for an

How it works Step 1: A company (Acme) registers with a Commission Aggregator (CA)

How it works Step 2: An affiliate marketer registers with CA Browses affiliate programs

How it works Step 3: CA issues an affiliate link containing tracking code www.

How it works (continued) Step 4: Affiliate promotes Acme's product or service through Micro-sites,

How it works Step 5: Buyer clicks on affiliate's CTA link Routed through CA

How it works Step 6: Reconciliation CA charges Acme $12 +15% ($13. 80) for

What it means For internet marketing companies Pros Incur expenses only on final sales

What it means For individuals Pros Viable career/business option Significant upside for. . .

A great place to learn The Challenge (Ed Dale) http: //www. challenge. co/ http:

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Topics in Technology and Marketing Drive Marketing: Affiliate Marketing

What is affiliate marketing? CPA – cost per action Commission-only sales force for an internet business 100% variable cost No overheads A global “pay-for-performance” sales team Some of the best Internet Marketers are affiliates

How it works Step 1: A company (Acme) registers with a Commission Aggregator (CA) e. g. Commission Junction, Click. Bank, etc. Provides product details, commission rate, etc. CA ACME

How it works Step 2: An affiliate marketer registers with CA Browses affiliate programs registered with CA Signs up for Acme's affiliate program AFFILIATE CA

How it works Step 3: CA issues an affiliate link containing tracking code www. CA. com/purchase. html? company=acme&promocode=aff 001 AFFILIATE CA

How it works (continued) Step 4: Affiliate promotes Acme's product or service through Micro-sites, Social Media, SEM/PPC All calls-to-action (CTAs) contain CA's affiliate link Microsite AFFILIATE Social Media SEM/PPC

How it works Step 5: Buyer clicks on affiliate's CTA link Routed through CA to Acme's shopping cart (company=acme) Sale credited to affiliate (promocode=aff 001) Buyer Microsite AFFILIATE Social Media CA SEM/PPC ACME

How it works Step 6: Reconciliation CA charges Acme $12 +15% ($13. 80) for each sale CA pays affiliate $12 for each sale CA profit = $1. 80 per sale $1. 80 $12. 00 AFFILIATE $13. 80 CA ACME

What it means For internet marketing companies Pros Incur expenses only on final sales Easy to administer Potentially massive exposure Cons Wild West – no real control over what affiliates say and do No loyalty – affiliates will immediately abandon program if sales do not close

What it means For individuals Pros Viable career/business option Significant upside for. . . . talented marketers. . . promoting desirable products. . . on a website that is conversion-optimized Passive income potential Cons No income unless a sale is made What happens if product is returned? Stiff competition for lucrative opportunities

A great place to learn The Challenge (Ed Dale) http: //www. challenge. co/ http: //www. youtube. com/watch? v=q-P 2 ua 1 Wc_I

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