Affiliate Marketing

Affiliate Marketing is a 100% performance-oriented channel that aims to generate sales or achieve various objectives through agreements with different affiliates or publishers.

By creating an Affiliate Program, advertisers can collaborate with numerous partners simultaneously. These partners promote the brand’s products and services in exchange for a commission for performing specific actions, such as sales, registrations, app installations, etc.

What is Affiliate Marketing?

Affiliate Marketing, or Affiliate Marketing, is one of the most profitable channels in a company’s marketing mix. This channel’s strength lies in the ability to develop and manage agreements with different affiliates, publishers, or websites that promote an advertiser’s products or services, and where the affiliate is only compensated when they have generated a sale. All of this is achieved through an Affiliate Program based on measurement technology. Thanks to this technology, we can track every step a user takes: from the first click on an affiliate’s website to making a purchase or signing up for a service on the advertiser’s website. The user’s journey would look something like this: A user is exposed to an affiliate or publisher’s campaign. This user is redirected to the advertiser’s website, and when they make a purchase, this sale is recorded in the affiliate platform for subsequent validation. Once the sale is validated, the affiliate receives the agreed-upon commission for that sale.

What is an Affiliate?

An affiliate or publisher can be any company or individual that collaborates to drive quality traffic to an advertiser’s website with the goal of getting the user to make a purchase or take a specific action (such as signing up for a newsletter, downloading a catalog, installing an app, etc.). In exchange for this valid sale or action achieved, the affiliate will receive a commission. Therefore, Affiliate Marketing is a model based on achieving sales/actions with a consistently positive ROI (Return on Investment). There are as many types of affiliates as there are ways to drive quality users to a website. There are more traditional affiliates such as coupon and discount websites, cashback sites, content websites and blogs, price and product comparison sites, social media publishers, etc. In recent years, a new type of partner has emerged that uses the latest advances in technology and data to provide much more advanced agreements.

What is an Affiliate Program?

An affiliate program serves as the gateway for affiliates and publishers to collaborate with your brand and promote your products/services. This program should be built on robust tracking technology that accurately records affiliate activities and the resulting sales. This technology also streamlines administrative, legal, promotional, and billing tasks associated with these agreements. Thanks to the technology of affiliate platforms, it’s possible to manage even more than 5,000 agreements simultaneously. This has made Affiliate Marketing a key component of the marketing mix for many companies. However, the importance of managing these programs is often underestimated, with the assumption that technology alone can handle everything. To achieve success with an affiliate program, a well-defined and specific strategy is essential for each advertiser, along with a team to execute it. Additionally, this team will manage each affiliate agreement, assisting them in optimizing their campaigns to maximize sales. It’s important to emphasize that Affiliate Marketing is a medium-to-long-term channel that requires resources and time to be successful. It’s not like other channels that can be activated or paused at any time. It demands effort, time, and a team of experts to help you develop it.

What is the Business Model of Affiliate Marketing?

The primary model in Affiliate Marketing is CPA (Cost Per Action – Payment per Action/Sale). This means that only when a sale/action has been correctly recorded in the affiliate platform and validated by the advertiser, the affiliate receives the corresponding commission. The CPA model has allowed advertisers to reduce their costs, optimize their campaigns, and pay only when real value is generated. Many companies have shifted their budgets away from Pay Per Click channels (such as Adwords) to give more weight to Affiliate Marketing. Some affiliates and publishers also work with other models (CPL, CPI, CPC, CPM), but the primary goal of Affiliate Marketing is to generate sales and compensate partners only when that sale is valid.

How do I create an Affiliate Marketing Program for my company?

The Partner Army can help you create an efficient affiliate and partner program that boosts your sales. With over 15 years of experience working with all national and international affiliate networks, we’ve identified the needs of most advertisers. Based on this analysis, we’ve created three different programs that cover these needs or, at the very least, serve as an excellent starting point:
  • STARTER Partner Program: This program is perfect if you don’t have an affiliate or partner program. We’ll not only help you create it but also manage and develop it.
  • OPTIMIZE Partner Program: If you already have an affiliate or partner program but it’s not taking off as expected, this is the program for you. We’ll help you analyze, optimize, manage, and implement an intensive affiliate and partner recruitment strategy.
  • CONSULTING Partner Program: If you already have active affiliate programs and even an in-house team managing them but aren’t achieving the desired results, this program is designed for you. Our team of experts will conduct a thorough consultation to identify real business opportunities and revamp or grow your program to surpass your set goals. Additionally, our experts will train your team to immerse them in Partner Marketing.