
Affiliates are essentially freelance marketers for your business. Image: Flickr / takapprs_flickr / CC-BY-SA
For any business, marketing can be a huge investment of time, energy and resources. Choosing an affiliate marketing program, especially a performance marketing program, can be a great way to get a proven return on investment.
What affiliate marketing does
Affiliate marketing is essentially an online extension of the age-old idea of a paid-on-commission salesperson. Affiliates are marketers who agree to display your advertisement or market your product/service, and you agree to pay them on the basis of a pre-determined metric. Pay-per-click, pay-per-view and pay-for-performance are all ways of determining compensation for the advertisements. As the business behind an affiliate program, you can control how, where and who runs your advertisements, but you do not have to take the time to individually manage every detail.
The basics of payment
There are three basic ways of paying affiliates for displaying your advertisements.
- Pay-per-click advertisements pay out for the number of clicks on your advertisement; Google AdWords is one of the most popular pay-per-click affiliate programs.
- Pay-per-view, also known as cost per mille or CPM advertisements are ads where you pay for the number of times your ad is viewed. Many individual websites that sell advertising use this metric for banner advertisements.
- Pay-for-performance advertising allows you, the advertiser, to set the performance metric that you pay on. This could be the number of conversions, visits or total amount of the sale. Amazon’s affiliate network is a pay-for-performance network that pays a percentage of the total sale.
Using a network vs going it on your own
It is possible to go it on your own with managing an affiliate program. If you do choose to do it on your own, you will need to attract affiliates, set up management for the affiliate program and handle payments. For large companies that have can handle the time commitment, it can be a good option. For most companies, including small companies, using an affiliate network that manages most of the details for you can be the best option. Affiliate networks usually take a percentage of whatever payment system you choose, so the cost will often be lower than managing your own network.
A guaranteed ROI
For most companies, knowing the return on investment you will get from marketing can be difficult. An affiliate marketing program with pay-for-performance metrics, however, allows you to set exactly what the cost per goal will be, which means you can determine the return on investment before paying out a single dollar.
Getting started
Setting up a basic affiliate marketing campaign with a network can be very quick and simple. Make a list that includes what kind of advertising you are comfortable with affiliates using on your behalf and how you will measure conversions or success. Decide what kind of payment options you would like to use.
Adworkz provides a flexible performance marketing network for marketers and affiliates. Start here to learn more about Adworkz advertiser options.









