Revenue Plans for Affiliates

In this era of digital press taking over the old school written press, a whole new  world of e-marketing is opening up. This gives internet marketers a lot of creativity to work with in terms of digital business promotion. At this moment, there is only a handful of different revenue plans for affiliates to monetize site traffic. These models are constantly evolving.  A good thorough explanation can probably fill at least 10 books, but we keep it at giving a brief introduction.

Content Websites, Blogs, Products Review Websites and Forums

WebsitesThese content affiliates are often mistakenly taken for the easiest model of affiliate marketing to set up. On these websites, there will only be published content on a specific topic. For a merchant, advertising here is as simple as placing a banner and a link.  Setting up such a model for an affiliate might be quite easy, but these sites require lots of maintenance as to keep their content up-to-date or follow up on reader’s posts, idea’s  and comments.  These niche market websites overall have low traffic volumes which automatically lend themselves perfectly for targeting a specific audience. Their audience in general has a very high conversion rate because a visitor is actually at point of destination researching a purchase he is about to make. This marketing model is based on less being more, which is very attractive for merchants who want to market their brands or other niche products and services.

Coupon Voucher Discount Affiliate Websites

These coupon affiliates are probably among one of the most controversial models nowadays. The strategy exist of promoting merchants actual products at discounted prices. The hundreds of discounts are the core of these websites. Merchants are reluctant to cooperate with coupon affiliates nowadays because of the affiliates discount codes being used not only on the affiliate website but also on the merchants website itself. The advertisers feel there is no added value for them, even worse, they feel their clients are being snatched away at their own expense, literally. In the affiliates’ defense, there are opinions that this model is probably not suitable to market just any product, but it works fine with diversification and targeting more exclusive and expensive products.

Websites using product data feed technology

Product feed technology is definitely the ugly duckling in the affiliation pond and therefore especially used in product and price comparison focused affiliate websites, simply because it is a little harder to understands how it works. Data feed is a concise spreadsheet-like report containing information like URLs, images, price, product description, the affiliate’s product ID etc. For each product there is being made a record. These data sheets are to be delivered to the affiliate by the advertiser which requires a little investment of course. The advertiser can deliver the feeds by e-mail to the publisher. If the advertiser works with a network, this network will encourage the use of File Transfer Protocal (FTP) or download from the advertiser’s server. The affiliate’s main target of implementing data feed technology is for the information to reach the consumer very clearly, uncluttered. Like every marketing model, using product data feeds is again not suitable for just any product. Especially for brand merchandising, data feed technology has been confirmed to have accomplished an increase in sales.

Paid Search affiliates based on Search Engine Optimization (SEO)

With the paid search model, the affiliate earns money when the visitor clicks through on an ad placed by the affiliate in cooperation with the merchant. This ad appears when the visitor types (a combination of) keywords related to the product’s  advertisement. Within this model, they are various types of payment plans. The most well known is the Pay Per Click, where the affiliate gets pay when his visitor clicks on the ad. Another plan is  Cost Per Mille, CPM, where the advertiser pays per 1000 views.  The third most frequent used plan is Cost per Action, which is thoroughly explained here. Video affiliates also use similar models like these.

You will find that these models are often used side by side in one project. The better affiliates will try and mix things up, simply because they want to know if it works. The extra revenue possibility is of course also a big motivation.

Hybrid Deals

A recent development is the affiliate becoming a merchant at the same time, the hybrid deals. This road is only to be taken by expert affiliates, who spent years of getting a dedicated audience. These visitors will welcome the new product selling. Others might not, and chances are big that once a visitor leaves, he will not come back.