Affiliate networks
Encyclopedia
An affiliate network acts as an intermediary between publishers (affiliates) and merchant affiliate programs. It allows website publishers to more easily find and participate in affiliate programs which are suitable for their website (and thus generate income from those programs), and allows websites offering affiliate programs (typically online merchants) to reach a larger audience by promoting their affiliate programs to all of the publishers participating in the affiliate network.
Traditional affiliate networks enable merchants to offer publishers a share of any revenue that is generated by the merchant from visitors to the publisher's site, or a fee for each visitor on the publisher's site that completes a specific action (making a purchase, registering for a newsletter, etc.). The majority of merchant programs have a revenue share model, as opposed to a fee-per-action model.
For merchants, affiliate network services and benefits may include tracking technology, reporting tools, payment processing, and access to a large base of publishers. For affiliates, services and benefits can include simplifying the process of registering for one or more merchant affiliate programs, reporting tools, and payment aggregation.
Affiliates are generally able to join affiliate networks for free, whereas there is generally a fee for merchants to participate. Traditional affiliate networks might charge an initial setup fee and/or a recurring membership fee. It is also common for affiliate networks to charge merchants a percentage of the commissions paid to affiliates.
and CPA
networks also exist. Lead generation networks are typically networks that, in addition to performance based promotions (affiliate marketing) also offer CPM
- or CPC
-based display advertising
. CPA networks, on the other hand, are often so-called "super affiliates" who are themselves affiliates of merchants via the traditional affiliate networks, and recruit other affiliates to promote the merchant through them instead of directly via the merchants program at the traditional network.
CPA networks take advantage of the ability to get higher commission rates due to their high volume, which they pass in part down to their affiliates. Average affiliates usually get paid a lower commission if they promote the merchant directly, because they are rarely able to generate the required volume to reach the higher payout tiers.
Traditional affiliate networks enable merchants to offer publishers a share of any revenue that is generated by the merchant from visitors to the publisher's site, or a fee for each visitor on the publisher's site that completes a specific action (making a purchase, registering for a newsletter, etc.). The majority of merchant programs have a revenue share model, as opposed to a fee-per-action model.
For merchants, affiliate network services and benefits may include tracking technology, reporting tools, payment processing, and access to a large base of publishers. For affiliates, services and benefits can include simplifying the process of registering for one or more merchant affiliate programs, reporting tools, and payment aggregation.
Affiliates are generally able to join affiliate networks for free, whereas there is generally a fee for merchants to participate. Traditional affiliate networks might charge an initial setup fee and/or a recurring membership fee. It is also common for affiliate networks to charge merchants a percentage of the commissions paid to affiliates.
CPA network
In addition to the traditional networks, lead generationLead generation
Lead generation, or lead gen is a marketing tool used, particularly in internet marketing, to generate consumer interest or inquiry into products or services of a business. Leads can be generated for a variety of purposes - list building, e-newsletter list acquisition or for winning customers....
and CPA
Cost Per Action
Cost Per Action or CPA is an online advertising pricing model, where the advertiser pays for each specified action linked to the advertisement....
networks also exist. Lead generation networks are typically networks that, in addition to performance based promotions (affiliate marketing) also offer CPM
Cost Per Impression
Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners,...
- or CPC
Pay per click
Pay per click is an Internet advertising model used to direct traffic to websites, where advertisers pay the publisher when the ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market...
-based display advertising
Display advertising
Display advertising is a type of advertising that typically contains text , logos, photographs or other images, location maps, and similar items. In periodicals, display advertising can appear on the same page as, or on the page adjacent to, general editorial content...
. CPA networks, on the other hand, are often so-called "super affiliates" who are themselves affiliates of merchants via the traditional affiliate networks, and recruit other affiliates to promote the merchant through them instead of directly via the merchants program at the traditional network.
CPA networks take advantage of the ability to get higher commission rates due to their high volume, which they pass in part down to their affiliates. Average affiliates usually get paid a lower commission if they promote the merchant directly, because they are rarely able to generate the required volume to reach the higher payout tiers.
See also
- Advertising networkAdvertising networkAn online advertising network or ad network is a company that connects advertisers to web sites that want to host advertisements. The key function of an ad network is aggregation of ad space supply from publishers and matching it with advertiser demand...
or Ad network - Affiliate programs
- Affiliate marketingAffiliate marketingAffiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts...
- Affiliate programs directoriesAffiliate programs directoriesAffiliate program directories are niche web directories that are very like the large and broad web directories such as the Yahoo! Directory or the Open Directory Project...