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Affiliate Marketing

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Affiliate marketing is a type of online marketing whose objective is focused on achieving results. The websites, called affiliates, advertise the advertisers and obtain a commission when the user enters their website and performs the action that has previously been agreed.

Clicking on a link, downloading a form, making a purchase, a subscription are some of the actions that can be agreed between affiliates and advertisers.

This type of marketing arose in 1996 through Jeff Bezos, founder of Amazon, who devised a way to link the websites of other sellers and that they get a commission from each book sold on their portal.

Advantages of affiliate marketing

- It's beneficial for the advertiser and the affiliate. The first pays if results are achieved and the second charges if they occur. The latter focuses on directing traffic to the actions that have been agreed with the advertiser.
- It isn't necessary to invest in customer service or support customers.
- The risk is non-existent since the company is allowed to grow in a potential way without damaging the investment.
- If people are satisfied with the recommended products, they can increase affiliate confidence.

Disadvantages

- It's necessary to develop an intense promotion, as if it were a company's own product.
- Customers are for advertisers, not for affiliates. A lasting or stable relationship isn't created.
- The results are medium and long term.

Commission on affiliate marketing

Different types are established:

- Cost per sale or cost per acquisition: a sale has previously been established as the action to be achieved. In this case, a commission is established based on the number of sales that come from the affiliate's banner.
- Cost per lead (CPL): the achievement of potential customers is the objective of this action. Direct sales aren't sought, but contacts through a newsletter, for example.
- Cost per thousand impressions (CPM): the commission is charged for every thousand readers who see the ad.
- Cost per click (CPC): the commission that the affiliate will receive will depend on the visits, on the clicks that the ad receives.


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