The option is to use a commission network. It is virtually a mediator, which caters to the advertiser partners, but of course, for it also takes a commission. On the other hand, the advertiser cares about virtually nothing. And the advantage also lies in the speed of running the affiliate program.
The advantages of our own software include:
- No affiliate network commissions are paid
- Direct communication with partners and negotiating the amount of commission
On the contrary, the following can be described as disadvantageous:
All administration of the affiliate program, i.e. finding partners, arranging cooperation, invoicing, evaluating statistics, etc., which can be time consuming
Commissions within the affiliate program
Given that commissions are paid to affiliate partners, it seems to be a suitable form of promotion especially for those who have higher margins for their products or services. Resp. those that can withstand a possible deduction of commission and will still be of interest to the trader.
The commission is paid only after the actual execution of the order and its payment. The 14-day return period also plays a role. The commission is usually set as a percentage and depends on the amount of the order itself. It can be units of up to tens of percent. In most cases, the commission is not paid individually, but always after reaching a certain limit.
Essentially, the affiliate program also thinks about a possible legal return of goods within 14 days. If the goods are returned, no commission is paid. From James Scholes you can have the best choices now with the Evergreen Wealth Formula.
Cashback portals and affiliate marketing
Cashback portals are a good example of an affiliate program. They present and review tens to hundreds of different e-shops on their website and offer the opportunity to get part of the money back for the purchase made in the selected e-shop.
The principle is that the cashback portal with these e-shops works on the basis of an affiliate program. When placing an order in the selected e-shop, the cashback portal receives a commission and shares it with the customer.
Affiliate marketing advantages
What affiliate marketing is from the above paragraphs is already clear. For the completeness of the information, it is also worth summarizing all the advantages and disadvantages of affiliate cooperation.
Advantages of affiliate marketing:
- Commissions are paid only for completed transactions, or for other required activities
- When establishing appropriate cooperation and finding a suitable partner, it is possible to target a wide or, on the contrary, very specific group of consumers
- The affiliate program offers only a low percentage of resellers, so its use can mean an edge over the competition
It is probably logical that the affiliate program is used mainly by large market players. The affiliate program can provide them with 5 to 15% of the total turnover. For smaller companies, of course, it is less, but it may be a suitable addition to other marketing activities.
