Affiliate Marketing

Affiliate marketing is the term used to describe online cooperation designed to promote sales. The participants in this cooperation are basically distinguished into merchant and affiliate. With affiliate marketing, the merchant generally provides the affiliates with advertisements that are then integrated into the websites (or also in newsletters, in the case of keyword advertising, etc.). It is a win-win situation for both parties: the merchant experiences an increase in its distribution reach as well as a stronger brand presence and in return the affiliate receives a commission.

Intermediation takes place via the affiliate link, which contains a special code that uniquely identifies the affiliate and serves as a basis for the commission payments. The commission can be paid for the clicks alone (cost per click), the establishment of contact by the customer (cost per lead) or the sale (cost per sale). There is also by now an array of further charging models.

In Germany there are established affiliate networks that offer support in selecting the right partner(s). The affiliate network offers financial risk minimisation and experience with a discrete affiliate pool. In contrast to this is the discrete affiliate organisation. This offers higher exclusivity and flexibility in return for higher costs and a higher time commitment.

The following points should be considered for a successful partnership:

• Who is the right partner?
• How do you find the right partner(s)?
• What is the mutual benefit and how is it allocated?
• How can the mutual added value be extended?