How to know whether affiliate marketing is right for your business


Imagine, you wake up and see that over the night you’ve received a big revenue and your ad became popular among the users. You may ask, how is that? Easy, with affiliate marketing any company can achieve their business goals.

Actually, there are many benefits of adopting affiliate marketing in your growth strategy. How about affiliate marketing revenue? It’s already reached $6.8 billions in 2018 and will hit the 10 billing mark in 2021, as forecasted. Affiliate marketing can increase your brand visibility and user’s engagement. So, let us explain you why affiliate marketing can be right for your business.


Main players in affiliate marketing

Affiliate marketing continues to gain popularity. Over 81% of brands and 85% of publishers run affiliate marketing programs. Only imagine what a big amount of the global digital marketing revenue affiliate marketing covers. We’ll try to understand the mechanism of it and will get to know the key players. Let’s describe the four parties that are involved in affiliate marketing: merchant (advertiser), affiliate, network, and customer.

The merchant refers to the companies that sell products or services online. When the merchant wants to increase its sales he goes to a marketing agency and then the advertiser uses the affiliate channels for launching the ad campaign. Affiliate marketing gives a broader market for advertising. Believe it or not, it gives the maximum exposure for the product or service. Because, c’mon guys, there are almost 4 billion active internet users in the world.


The affiliate is responsible for selling traffic. Being an affiliate doesn’t require to be an expert or specialist of the product or service that’s being promoted. Affiliates act as intermediaries between advertisers (brands) и publishers (apps, websites, ad networks) to push ad campaigns and connect products with potential customers. To maximize potential earning of the brand the merchant usually provides excellent support for their affiliates.

The network is a platform that brings together merchants and affiliates. Here merchants can find thousands of new affiliates who can promote their products or services, and affiliates can take a lot of new offers. Affiliate networks are an excellent way for businesses to expand their branding online and make their products or services known. Availability of customer care program allows advertisers or merchants to co-work with qualified affiliates and prevent fraud sending.

The customer plays a key part in affiliate marketing relationships. The customer helps to earn the revenue. Actually, merchants rely on affiliates to find the customers. Affiliate marketing helps to learn the behavior of the user and build a long interaction between two parties.

How affiliate marketing works


Affiliate marketing is oriented on promoting one or multiple products or services, and works to attract the interests of potential customers, who can make a purchase. If you want to become a professional marketer, you should understand the dynamics of affiliate marketing.

Affiliate marketing is a system that plays a big part of role in any stage of brand recognition: from the creation till the purchase, and rewards all the members of the marketing team in full. Each party (the product creator and affiliate marketer) gets the revenue according to their contributions.

So, the merchant creates a product or service (let’s say the app that helps create cool story pictures for the Instagram), and wants everyone (we mean everyone from the targeted audience) to know about the service.

First, find out with the audience. Who can be interest in the app? Instagram users, women, marketers, stylists, etc. After, create the advertisement that will clearly show what your brand is about and what action you want from the users.


When everything for promotion is ready, advertiser creates an offer in the affiliate network and waits for response. After a certain time, affiliates make a deal about the price and conditions and start sending traffic. The users tap the ad and get acquainted with the brand. After all, advertisers see the results of ad campaigns and work on further strategy.

Types of affiliate marketing

Affiliate marketing relies on performance marketing. Performance marketing uses advertising with innovations. There are two most popular and effective strategies that can help to boost the income of the company.

Start with cost-per-action or acquisition (CPA). According to Brian Dean, CPA marketing strategy was the best way to monetize his business, and increase the revenue from 0 to $10.000 per month in four months.


So, why is CPA pricing model so effective? Because the merchant or advertiser pays only for a particular action. With a CPA model, customer conversion happens faster.

There are two reasons why the CPA marketing model is recommended more often that other types of online advertising. First, advertisers want to know how it works and understand the value chain.

The second reason is that CPA marketing helps advertisers save time and money.

Another effective strategy is Revenue sharing. The revenue sharing helps merchants to build their business, and pay partners and associates a commission for funneling the customers to the company. The revenue share is a percentage of the amount of money made by advertiser that you get. Publishers are paid a fixed percentage of revenue for any customer they’ve directed.

Both marketing directions are cost effective. If you can convince your users to stay for a long time then revenue sharing will be very useful for your marketing campaign. If you plan a short-term offer that will bring the users for a specific action, the CPA strategy will be suitable for you.

Business benefits of affiliate marketing

Affiliate marketing can be a great tool for your business that will help to expand your revenue streams. It has numerous benefits:

It brings a large volume of web and mobile traffic.

It helps your company reach new customers in different countries.

It helps to build relationships with key affiliates.

It brings more revenue to your business.


Affiliate marketing can help you transform the visitors to your customers. You can easily acquire more customers for a low cost. Advertisers can easily track the user’s performance like click-through views. Knowing better the audience advertisers can create a suitable advertisement according to the information about the targeted users

And yes, you pay for ads that actually perform, and affiliates make money when they deliver quality traffic. Affiliate marketing is cost effective especially for those who just decided to start their business. It has been proven in the software industry that when affiliate marketing is utilized correctly, 10-15 percent of total sales revenue is affiliate driven.

Affiliate marketing ensures that the merchants will not waste their budget on the programs that don’t bring buyers. Affiliates will send the traffic in the right direction and the networks will help to control the process (build the statistics, detect the fraud, build the strategy.)

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