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What is affiliate marketing?

Affiliate marketing (also known as performance marketing) is a way how to drive and scale up sales. Publishers are only paid when web page visitor of their site is redirected to an advertiser’s site and then make a sale or perform desired action. This model ensures limited risks taken by advertiser, while publishers have a freedom to place creatives and utilize variety of channels.

There are several key conversion models of affiliate marketing:

CPS

(cost per sale) – publisher is rewarded when a site visitor is redirected to an advertiser’s site by the publisher, then make a purchase. For example, a web visitor browsing web clicks on an ad, and then make a purchase on advertiser’s webshop.

CPL

(cost per lead) – once publisher’s web page visitor is referred to an advertiser and enters and submits their personal details. This qualifies as a lead.

Combination of CPS and CPL

publisher is rewarded for small amount for a lead, usually covering costs of lead and by bonus in case of sale, which make a profit for publishers.

% from delivered sales volumes

publishers receive for example 10% of sales volumes as provisions (doesn’t matter, how many products was sold).

Ladders of # of sales, volumes or leads

provisions for publishers are growing with delivered numbers of sales or delivered leads or volumes. There could be also additional bonusses for x-sell of other products (ie. Cusotmer buy more than one product).