Affiliate marketing – How to gain profits? A practical guide to pricing models.
A cutting-edge web marketing technique, which is an affiliate network is rapidly gaining in popularity. This system acts as a link between publishers and advertisers for the benefit of both parties – tested and proven products are promoted by trusted persons. In addition, payment is dependent not upon the very fact of promotion, but upon the effect. Our role is to advise why this marketing method is worth opting for and how to settle it best.
How does affiliate marketing work?
Establishing co-operation between advertisers and publishers has been a relevant part of marketing for years. Usually, however, a direct communication between each other was a necessity to this end. The affiliate marketing is a platform, which offers us a quicker and a more satisfactory solution (for both parties).
Premises of affiliation are relatively simple. Advertisers establish their own programs in affiliate networks, and publishers find the ones that suit their needs and decide to promote them. Thus, at the beginning both parties must register on the platform and be verified.
Once it has been accomplished, we gain access to a huge database. Advertisers – to many users, who can help promote their product, whereas publishers – to a vast collection of brand programs. Importantly, before embarking on a co-operation, an advertiser is obliged to accept a publisher; as a result, the former has full influence over prospective participants in advertising the latter’s merchandise.
Both parties may at any time monitor ongoing progress and the results of programs via a report panel, to which they have permanent access.
Affiliate network – how to make a selection?
It is a dynamically developing marketing channel, owing to which we can find a wide array of co-operation offers on affiliation terms. What qualities should a good affiliate network display?
First of all – it is best if registration is unpaid and available to everyone.
Secondly – pay attention to available pricing methods: preferably, more than one option. Then, the most beneficial solution can be adjusted to a given product and a program.
An offer, which is available on a particular platform is also essential. The broader selection of advertisers (and their programs) and contractors, the better.
A good network will also be satisfactory in terms of technology. Simple operation of the website and intuitive panel will surely facilitate a co-operation.
One of affiliate networks available in Poland and complying with these requirements is LeadAMore.com. Among offers available on the platform, there are also exclusive propositions that cannot be found anywhere else. Handling of partners is held in three languages (Polish, English and Russian) via e-mail and Telegram messenger. The network also enables use of offers in countries other than Poland due to availability of products in 21 EU countries. Registration on the platform is free of charge, and partners praise e.g. a lucid, substantive contact with the service staff. Pricing models available on LeadAMore.com are CPA and CPL – let us get to know what these acronyms stand for.
Pricing models of affiliate networks – CPA, CPL and more
The effect is what truly counts in affiliate marketing. An advertiser pays a publisher for tangible results he has been able to deliver during promotion. We can distinguish various types of pricing models, based on which we can assess the value of the work performed by a publisher.
Cost Per Action (CPA) – in the case of this solution, performance of a specific activity is considered. Its type depends on a given product or a program. This may represent e.g. playing an advertising game (advergame), watching a movie, downloading an app, filling in a questionnaire or a contact form. It is important that activity, for which an advertiser is willing to pay should be clearly defined in the contract. The method – Cost Per Action is also called Pay Per Action or Cost Per Acquisition.
Cost Per Lead (CPL) – concerning this pricing model, acquisition of contact data of prospective customers interested in the advertiser’s offer is remunerated. Users are referred to a special subpage with a form (landing page). A performer receives pay for each form, which is correctly filled up, that is contains valid and complete data. Cost Per Lead is Pay Per Lead in other words.
Revenue Share (RevShare) – is otherwise specified as the profit distribution, carried out on pre-agreed terms. This is a fairly risky program for a performer (in the case of a lack of financial success s/he can be left empty-handed), however a definitely more secure for an advertiser.
Cost Per Click (CPC) – as for this case, a performer is paid a specific amount of money for every click on the advert. This is one of the least commonly applied pricing models in affiliate marketing.
Cost Per Sale (CPS) – this solutions consists in making a remuneration conditional on the sales figures of a particular product or a service. A sum of money may be determined in advance and the same through the entire time, may also differ depending on the amount of a transaction effected.
Also, we can often come across hybrid pricing models, which combine the previous methods. One of the examples may be CPS + CPA – as regards this case, a performer receives a commission fee both for the action and the possible sale. These types of contracts may increase confidence in obtaining a commission, on the other hand, however, it is worthwhile to take note of rates of pay, which can be a bit lower.
Affiliate network, LeadAMore.com is open to new partners, guaranteeing a co-operation in an attractive model of performance-based advertising (pay for performance advertising). We are pleased to invite you to a free registration on the website https://leadamore.com