15 Feb The World of Affiliate Marketing
SYYCO was established in 2011 as a specialist affiliate marketing agency. We have experienced the affiliate space change and develop significantly over the years. By 2020 the industry is predicted to be worth an incredible $6.8 billion dollars and is set to continue to grow even further.
With this amazing growth we are very aware that the world of affiliate marketing can be confusing. Our #TeamSYYCO blog aims to provide regular tips, advice and articles to help develop your understanding, as well as explaining how SYYCO can help you manage your Affiliate Program.
So let’s start at the beginning. What is Affiliate Marketing?
To strip it down to basics, Affiliate Marketing is the promotion of a product or service in exchange for a payment. The Retailer/Merchant is the business looking to promote its product or service and the Affiliate/ Publisher is the third party recommending or promoting those products and services.
The process involves 4 stakeholders
The Affiliate Network
The Retailer is an ecommerce business that has a product or service to promote. They are looking to increase their revenue stream, reach new customers and maximise their marketing budget and need a performance based model. They provide offers and set the commission terms to promote. The Retailer will select an Affiliate Network and create an Affiliate Program which Publishers join in order to advertise the retailer. A Retailer can chose to manage an Affiliate Program in house under the remit of the marketing or digital team, have the program managed directly by the Affiliate Network or appoint an Affiliate Marketing Specialist.
The Affiliate Network sits between the Retailer and Publisher. They process the transactions via Affiliate Programs using unique tracking links that identify who the Retailer is, which Affiliate the transaction came from and the commission that should be paid. They invoice the Retailer and pay the Affiliate accordingly.
The network manages the various compensation methods a Retailer can offer, but usually commission is a percentage of the sale or a fixed fee when a sale is generated via a Publisher tracking link. This is usually referred to as CPA (Cost-Per-Acquisition). There are other methods such as CPC (Cost-Per-Click) where a Publisher is rewarded based on traffic. But we’ll save this for another blog!
The Affiliate Network is often the communication hub for Publishers and can store Retailer assets such as logos, banners and imagery, Retailer promotions and deals, tools to build tracking links and provides industry news for the Publishers to access whenever they need it. This is useful for the Retailer to help manage and control their brand image and consistency.
There are numerous Affiliate Networks and it is important to choose an appropriate network for both Retailers and Publishers. SYYCO have long standing relationships with most of the networks, including CJ, Rakuten, Tradedoubler, Awin, Affilinet, Affiliate Future, and Webgains and we can recommend and negotiate terms with the networks on your behalf.
The Publisher is the third party who uses the tracking link on their online platform, be that a website, social media channel, app or otherwise, to promote the Retailer. The breadth of publishers is huge, but most common in the Affiliate space are Voucher code and Discount sites, Cashback & Charity fundraising sites, Sector specialists, Bloggers and in more recent years Social Media Influencers. Publishers may use all, a percentage or non of of the commission they have been offered by the Retailer to promote the product or service.
The Customer buys a product or service via the Publisher. This may not happen immediately, but with most Affiliate Programs there is a cookie period of around 30 to 60 days, meaning a transaction that occurs at a later date may still result in a commission for the Publisher.
What is the benefit of choosing an Affiliate Marketing Agency?
Are you looking to set-up an Affiliate Program for your business? Do you currently manage your Affiliate Program in-house but are struggling with the level of support and management the Program requires to be effective? Or maybe you currently have a Network managed program but can see the potential of affiliates and want to harness it.
Affiliate Marketing is a powerful digital marketing discipline, but in order to be successful it needs to be nurtured and managed throughout the year. This is often time consuming and difficult if resources are limited. Affiliate Marketing is reliant on relationships and partnerships. Again, relationships needing nurturing and managing.
Now it’s time to talk about SYYCO. We manage the Affiliate Marketing process for you!
We take the day to day management of an Affiliate Program from setup, launch, and implementation, Network negotiations and management, Publisher recruitment and communications, collaboration with wider Marketing teams and Agencies, to planning, strategy and performance reviews. We can manage all communications with Affiliate Networks, leaving you with one point of contact for all your Affiliate activity.
Our broad client portfolio means we are in a strong negotiating position with Publishers, and can provide cross-marketing opportunities.
With Ex-network employees in our team we have detailed ‘insider’ knowledge of Affiliate Networks and commercials which proves invaluable when launching or moving programs between Networks.
Our team all have travel and leisure backgrounds and draw upon this expertise when planning and implementing Affiliate Program strategies.
It’s time to talk Affiliates. Drop us a message today: firstname.lastname@example.org