Wednesday, 12 December 2012

A thank you note to all my reader !!

It's almost an year when i started to pen down my research and thought on this subject.
and without your constant encouragement it would have never been achieved.
Happy anniversary and thank you very much !! I promise to keep posting wonderful facts from affiliate marketing world :) :)

But today before i conclude i want to talk about some challenges as well what we are facing with affiliate marketing.

We need to look into not only the positive aspects but also some challenges faced by affiliate
marketing as listed below
  • Hiring and maintaining affiliates (Merchant Perspective)
  • Security breach (Cookie stuffing and link hacking)
  • Stiff competition between affiliates to establish a position in the market
  • Commission out of affiliate control as it is decided by Business/Product owner.
But anywhere we measure challenges against benefits to get the happy picture. and we'll do that in coming days. thanks.

Tuesday, 18 September 2012


As I have promised last time here comes BENEFITS & BENEFICIARIES IN A NUTSHELL. Now the question comes are we that means i and more importantly you are a part of this lucky breed in world of affiliate marketing. 


  • Merchants & its products are able to reach out to a worldwide market. 
  • Medium of delivery is internet and is the cheapest mode (Cost Effective) of driving sales with good return of investment (ROI)
  • Merchant needs to pay affiliate only if they generate click, lead, impression or a sale unlike traditional advertising. 
  • Intermediary network helps in linking the affiliate & merchant so that promotion kicks off based on mutual interest and good understanding. 
  • Extra revenue source without compromising merchant’s routine job as affiliates with appropriate expertise take up the responsibility of product marketing.
  • Easy to get started as building promotion links like banners does not require much technical expertise. Business owners/merchants get real time demand feedback of their products enabling them to initiate rapid course correction if required.


  • Affiliates drive the sales for merchants and earn commission on generating a successful click, lead, impression or a sale. This has created an excellent business opportunity which has been successfully leveraged by a thriving community of internet savvy entrepreneurs.
  • Targeted and relevant advertisements are served based on the user profile making it easier for the end user to make a purchase and also increase the possibility of a sale.
This gives a clear picture of what stands as the benefits and who are benefited out of this affiliate marketing. And Obviously this makes Affiliate Marketing standing Out as winner in the field of Internet marketing.

Tuesday, 21 August 2012


The following section describes an example from real world of Affiliate marketing helping an online
vendor to increase sales through a successful marketing campaign. This vendor can be anyone selling any common or rare products ranging from rare flowers , scented candles or tasty chocolates as well.
The various aspects of a successful campaign are described from the perspectives of all the entities involved. The below schematic depicts the various workflow involved.

Merchant Perspective:

  • Merchant wants to sell some items say rare flowers through his website at specific price points, making optimum use of his online advertising budget.
  • Merchant approaches an Affiliate marketing intermediary to get connected with an appropriate affiliate network conversely the various competing intermediaries could also approach the Merchant offering their services.
  • Once the appropriate affiliates are identified the remuneration model for the affiliate and the intermediary is negotiated and finalized. Using the Link/Ad creation interface, provided by intermediary, the merchant joins the network and creates the text, banner ad’s which will link to his site.

Affiliate Perspective:

  • Affiliate participates in the offer extended by the merchant and establishes the business relationship using the interface provided by intermediary.
  • Gets access of the Ad links created by the merchant, takes the link code and publish the ad link in their website.

End user/Consumer perspective:

  • End user/consumer views the ad placed in the affiliate website and on clicking it they are redirected to the merchant site ( via the intermediary server where it gets tracked. 
  • End user view the ad and proceeds with the purchase or provide their details in merchant site where by a sale/lead is generated.
  •  The above action gets tracked by the merchant server and they get to know that a sale/lead has occurred.

Merchant Reporting: 

  • Merchants report the sale to intermediary by means of transaction (reporting) methods which would contain the affiliate code, sale amount, and quantity of products purchased. 
  • Reported transactions (sales) are cross checked by the intermediary with the clicks they tracked.

Commissioning & Payment:

  • Based on transactions reported merchant generates 2 invoices (For Affiliate and Intermediary) in the interface provided by the intermediary and sends the payment to the intermediary. 
  • Intermediary cross check the invoices generated and ensure that appropriate commission is credited to affiliate based on the offer set by merchant.
  • Intermediary also gets the appropriate commission from the merchant as agreed in the merchant membership agreement.

So here comes the big Question ??????????????? what are the "BENEFITS" & Who is the "BENEFICIARIES" ???
Answers will be here only anytime soon and don't be surprised to see you can also be one of the main beneficiaries :) :)
Keep looking this space for the next article about  BENEFITS & BENEFICIARIES IN A NUTSHELL in the beautiful world of AFFILIATE MARKETING..... 
Happy reading & Regards :)

P.S:- If you have doubts wandering in mind about your content read an article which is Changing the way we think about content.

Wednesday, 25 January 2012


As a continuation of Affiliate Marketing Process we are talking here about SALES/TRANSACTION TRACKING METHODS

Merchant once tied up with the intermediary comes to an agreement on reporting/tracking (transaction) methods to be followed to track the sales/lead/clicks. Intermediary servers also keep track of these activities to ensure proper commission is given to affiliate.

To ensure the proper remuneration to affiliate and intermediary, merchants makes use of transaction reporting techniques for each sale/lead/clicks generated. Based on the sales/leads they receive, transactions are reported to the intermediary server.

Intermediary receives the transactions reported to them by the merchant, compares it with the clicks/lead tracked by them internally and makes sure affiliates gets proper remuneration from the merchant for their marketing effort.

Affiliate marketing process falls on many Payout models..


Affiliate Payout Models 
There are several remuneration models utilized by the Merchant to compensate the Affiliate. The model and commissions which will govern a particular campaign is negotiated and agreed upfront before a campaign is initiated. The remuneration models are described below
  • Cost per click (CPC): Affiliate is paid by the merchant each time an end user/consumer clicks on the advertisement. 
  • Pay per sale: Affiliate earns the commission every time a purchase is made on the merchant’s website by a visitor, referred to them by the affiliate.
           i. % of Sale (flat) - Fixed/Flat rate at which an affiliate would be paid irrespective of the number of sales made.                
           ii. % of Sale (tiered) - This works with the concept “More number of sales, more the commission”. E.g. When sales exceed $X then affiliate commission is Y%.
  • Pay-Per-Lead: Affiliate earns a commission for every visitor that was redirected by the affiliate to the merchant’s website and performed some action, like filling out a registration form or opening an account and so on. This model commonly used in cell phone, banking, credit card or mortgage sectors.
  • Cost per Impression: Affiliate gets paid a specified sum for every thousand impressions including the Page Views or Displays of the advertisement. 
CPI calculation = CPM (Cost per 1000 impressions)/1000 E.g. If CPM=$5 this means CPI is $0.005.

Intermediary Payout Models

Intermediary can get remunerated in any of the below ways

1) Based on the mutual agreement with the merchant when the latter agreed to accept the intermediary services to get linked with potential affiliates & joined them.
2) Based on the sales/leads/clicks generated by the affiliates.
3) For the services they render to affiliate and merchant to manage their business activities.


Click through Rate (CTR): Way of measuring the success of online advertising campaign.

Click Through: Process in which the merchant website gets opened by a click performed the consumer with intent to see the product. CTR- Number of Clicks/Number of Impressions

Please add your comment if you want to get it improvise or you want any further info !!
Keep looking this space for the next article about  A Real World Example in AFFILIATE MARKETING.. Happy reading & Regards :)