With affiliate marketing, you pay commission to people who supply you with customers or visitors. Thus, the affiliate shares information about services or products on its website and earns money or commission with every visit or purchase. Depending on the contact between affiliate and advertiser, it can be a very warm and successful form of marketing. But how do you start with affiliate marketing?

What is Affiliate Marketing?

Online marketing is called Affiliate marketing. Affiliates are people with a website or newsletter on which they actively promote certain products or services from advertisers. Usually via blogs on a website, but it can also work fine via newsletters or social media.

It thus resembles influencer or content marketing, but an important characteristic of affiliate marketing is that the fee is variable. Should someone click on links in these blogs or newsletters and purchase a product or service, the affiliate earns a commission. Thus, the costs (or earnings) of affiliate marketing depend on several factors in terms of performance.

It is therefore in the interest of affiliates that people want to make a purchase almost immediately after they recommend products or services. Then the affiliate forwards them. The purchase, therefore, takes place with the advertiser. Affiliate marketing is therefore useful for people with a blog, newsletter, or site who do not have their webshop.

How does affiliate marketing work?

Affiliate marketing is a bit of a separate form of advertising. In other forms of advertising, an advertiser usually creates the advertisements and determines a budget that he wants to use. In affiliate marketing, the affiliate has a lot of influence on the ad and its reach.

Although the roles have not been completely reversed. The advertiser still decides which product he is looking for promotion for and what commission he is willing to pay for it. Sometimes this is an amount per visitor, but usually, it is a piece of the commission. The affiliate then determines how and where to use the advertisements. For example, he can decide that these products or services are such a good fit for his target group that he will write blogs about this or mention these products in a newsletter.

The reach is therefore largely determined by the affiliate and the advertiser does not know in advance how much money he will spend on the advertiser per month. Although that is usually not much of a problem if this is just a small problem of turnover.

Affiliate Marketing Networks

Advertisers and affiliates can approach each other directly, but there are also specialized networks. Well-known Dutch affiliate marketing networks are Daisycon, Tradetracker, and Awin. Also, dozens of networks are activities that are sometimes aimed at a niche or region. Thousands of affiliates and advertisers are already affiliated with these networks and they also take all the technology and administration off your hands.

Both professional affiliates and newcomers often work with these specialized networks. Although these also simply cost money and it is not very difficult to set up a campaign yourself. For example, via the Plug & Pay software you can easily add a cash register to your website where you determine in advance which commission you want to offer to affiliates (per product). With unique links for partners, influencers, ambassadors, or other affiliates you can easily set up an affiliate marketing campaign yourself.

What is affiliate marketing suitable for?

Think of it as some kind of paid form of word of mouth. If many people start recommending your products on their blogs, newsletters, or social media, it will have a similar effect. Yet few advertisers make widespread use of it.

On the other hand, it can lead to long-term partnerships between advertisers and affiliates. Especially if it is equivalent and the fees are for both parties. It is then an ideal solution for many products and services.

One reason that affiliate marketing sometimes fails is that the expectations are too high in advance. Setting up a campaign can be quite intensive, especially in the beginning. Because there are networks active where you can set up a campaign quite easily, but here too the chance is small that affiliates will pick it up en masse. It is also debatable whether they do this in the way you would like people to offer your products. You have to lend them a hand. You have to actively help some ambassadors of your campaign yourself with, for example, sample texts, banners, benefits, et cetera.

Also, it is sometimes difficult to find the right compensation. Many advertisers are a bit cautious at first. They are afraid that the affiliates will also reach part of their current customer base and that they will therefore incur a lot of costs and find only limited new customers. This means that they work with low fees at the beginning,