Affiliate marketing is a marketing model or framework allowing brands and affiliates to partner up, and generate more sales. The partnership’s performance and results can be monitored and measured through scalable, cost-effective ways.
For instance, if you own a jewelry company that sells wedding and engagement rings, you can choose to partner up with individuals and companies through an affiliate program. Your partners, also called affiliates, will market your rings in order to drive more leads, sales and customers. In every sale finalized, you pay them a commission.
Are you looking for top affiliate programs in Malaysia? There are tons of products and programs to choose from, depending on your chosen niche. Below are some important things you should know before you start your affiliate marketing career.
The Affiliate Marketing Business Model: The Players
1. Affiliates – Partners, Publishers
Affiliates can be social media influencers, bloggers, niche content websites, product review websites, mobile apps or other brands.
2. Brands – Merchants, Advertisers
These are businesses that sell products and services, from retail, travel and telecom to direct-to-consumer, gaming and ecommerce services.
3. Affiliate Networks
In an affiliate marketing program, affiliate marketing networks usually handle all reporting, tracking and payment to the affiliates. Apart from offering tracking technology, affiliate networks also deliver self-service or full-service program management. They also give access to affiliates who want to join their own network.
4. Software as a Service (SaaS) Platforms
SaaS platforms offer businesses with performance payment, reporting and tracking. However, they don’t provide access to affiliates, and manage affiliate programs. They just focus on the affiliate program’s technological aspects. Brands pick either a SaaS platform or an affiliate network as a technology partner, or both.
Agencies manage and oversee daily operations, and program strategy in behalf of all the brands, including optimization, activation, partner recruiting and partner relationships. They directly work with affiliates, and with the SaaS platform or affiliate network that services the program’s technological needs.
The customers are the audience that the affiliates strive to influence in order to finalize purchases.