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:
(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.
(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.
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).