After all, what is Affiliate Marketing?
Posted: Thu Dec 26, 2024 8:40 am
Affiliate Marketing is a form of online advertising in which an affiliate promotes advertisers’ products and/or services in exchange for a commission – which can be generated through clicks, sales or specific actions. It is a digital marketing program based exclusively on performance.
The affiliate marketing market is currently one of the most prosperous in the world. Working with this program has become essential, both for companies that want to generate more sales and for people who work with content on the internet and are looking for an effective way to monetize their work. With a simple and segmented business model, it means that both parties, companies and affiliates, work towards the same goal: to make money!
There are different names and formats for affiliate programs. These different formats represent the options that Actionpay offers its affiliates to monetize more easily with their audience.
CPA (Cost Per Action)
CPL (Cost Per Valid Lead)
CPI (Cost Per Install)
These acronyms stand for the commission format. Whether you receive a commission for an action/sale or for a lead/registration on a website/app. Many people use affiliate programs without understanding the terms associated with them, which can lead to unnecessary complaints. In short, when you promote a product, you are rewarded for that promotion according to what the company has previously decided: action, sale, registration, lead, subscription, installation and clickout.
To better understand how each of these advertising formats works with affiliate programs, we will analyze each case and give you some practical examples for a better understanding:
CPA (Cost Per Action)
Cost per action, like action, is a metric that the advertiser defines for the campaign and, in this case, you. The chosen action is usually the sale of a product or subscription to a service.
CPL (Cost per Lead)
Cost per lead usually pays a commission for filling out a form or registering new list of iran cell phone numbers users. In this case, the advertiser chooses to pay for a potential customer to register for a specific product or service. The customer does not complete the purchase or subscription process, but registers their details as interested.
CPI (Cost Per Install)
Cost per install occurs when the advertiser passes on a commission for each installation. Very common in mobile campaigns on Android or iOS, the affiliate is paid when they get a new user to download the app and open it for the first time. This model is one of the most sought after by affiliates due to its simplicity.
Note: It is worth remembering that valid leads are harder to obtain and may be rejected by the advertising company. In the case of CPL, many users tend to complain to affiliate companies because they had generated X leads and the company only validated Z leads. But the truth is that the company has the right to revoke any and all leads that it considers do not meet the requested quality, also known as KPI. This is why many affiliates who do not work with niches and/or segmented audiences opt for CPA commissioning, in which, regardless of lead validation, it is easier to fulfill the action of selling a product and receive the commission.
For example: You sign up for a CPA affiliate program, where you pay a 10% commission on sales. If you send a user to a specific advertiser and they place an order for R$500, your commission will be R$50. However, a customer who buys R$1,500 worth of products will generate a commission of R$150.
The great advantage of this type of affiliate program is that it can generate low commissions or extremely high commissions. However, this will depend on several factors, including the interest of your audience in the products advertised. That is why it is so important to know your audience, as already mentioned in the article “ 10 tips for success with affiliate marketing ”.
Why is Affiliate Marketing with Actionpay more advantageous?
Actionpay is geared towards the large online retail market, which is growing rapidly today . In addition to providing a practical and intuitive platform, it makes affiliates' work easier and provides several campaigns for them to monetize. Thus, affiliate marketing is any and all e-commerce that guarantees a commission to users who promote and sell their products. The intention is to encourage the movement and natural conversion of sales. Therefore, Actionpay is a space that brings together all the campaigns of large Brazilian e-commerces, guaranteeing even more advertising options for our affiliates.
Conclusion
To get started in affiliate marketing, you must first understand how each form of commission works and decide which one will be the most profitable choice for your type of business and niche.
The affiliate marketing market is currently one of the most prosperous in the world. Working with this program has become essential, both for companies that want to generate more sales and for people who work with content on the internet and are looking for an effective way to monetize their work. With a simple and segmented business model, it means that both parties, companies and affiliates, work towards the same goal: to make money!
There are different names and formats for affiliate programs. These different formats represent the options that Actionpay offers its affiliates to monetize more easily with their audience.
CPA (Cost Per Action)
CPL (Cost Per Valid Lead)
CPI (Cost Per Install)
These acronyms stand for the commission format. Whether you receive a commission for an action/sale or for a lead/registration on a website/app. Many people use affiliate programs without understanding the terms associated with them, which can lead to unnecessary complaints. In short, when you promote a product, you are rewarded for that promotion according to what the company has previously decided: action, sale, registration, lead, subscription, installation and clickout.
To better understand how each of these advertising formats works with affiliate programs, we will analyze each case and give you some practical examples for a better understanding:
CPA (Cost Per Action)
Cost per action, like action, is a metric that the advertiser defines for the campaign and, in this case, you. The chosen action is usually the sale of a product or subscription to a service.
CPL (Cost per Lead)
Cost per lead usually pays a commission for filling out a form or registering new list of iran cell phone numbers users. In this case, the advertiser chooses to pay for a potential customer to register for a specific product or service. The customer does not complete the purchase or subscription process, but registers their details as interested.
CPI (Cost Per Install)
Cost per install occurs when the advertiser passes on a commission for each installation. Very common in mobile campaigns on Android or iOS, the affiliate is paid when they get a new user to download the app and open it for the first time. This model is one of the most sought after by affiliates due to its simplicity.
Note: It is worth remembering that valid leads are harder to obtain and may be rejected by the advertising company. In the case of CPL, many users tend to complain to affiliate companies because they had generated X leads and the company only validated Z leads. But the truth is that the company has the right to revoke any and all leads that it considers do not meet the requested quality, also known as KPI. This is why many affiliates who do not work with niches and/or segmented audiences opt for CPA commissioning, in which, regardless of lead validation, it is easier to fulfill the action of selling a product and receive the commission.
For example: You sign up for a CPA affiliate program, where you pay a 10% commission on sales. If you send a user to a specific advertiser and they place an order for R$500, your commission will be R$50. However, a customer who buys R$1,500 worth of products will generate a commission of R$150.
The great advantage of this type of affiliate program is that it can generate low commissions or extremely high commissions. However, this will depend on several factors, including the interest of your audience in the products advertised. That is why it is so important to know your audience, as already mentioned in the article “ 10 tips for success with affiliate marketing ”.
Why is Affiliate Marketing with Actionpay more advantageous?
Actionpay is geared towards the large online retail market, which is growing rapidly today . In addition to providing a practical and intuitive platform, it makes affiliates' work easier and provides several campaigns for them to monetize. Thus, affiliate marketing is any and all e-commerce that guarantees a commission to users who promote and sell their products. The intention is to encourage the movement and natural conversion of sales. Therefore, Actionpay is a space that brings together all the campaigns of large Brazilian e-commerces, guaranteeing even more advertising options for our affiliates.
Conclusion
To get started in affiliate marketing, you must first understand how each form of commission works and decide which one will be the most profitable choice for your type of business and niche.