Affiliate

Digital Marketing Marketing

Master Program
 Agenda

 What is Affiliate Marketing?

 Different Commission Structures
 Different Type of Affiliates
 Promoting a Brand (Flipkart) - Casestudy
 How does Tracking Work
 Getting Started with In-House Tracking
 Conversion Attribution
 Affiliate Networks
 Affiliate Networks Vs Inhouse Affiliate Networks
 Managing Affiliates

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 What is Affiliate Marketing?

1) The stakeholders in Affiliate Marketing involve - Brand (Online Business) | An Affiliate (For eg - Blogger) and a User
(someone interested in researching or making a purchase)
2) An Affiliate promotes the Brands product or service on their web property (For instance - website, social channel, email,
messenger client)
3) A user lands on the Affiliate's web property, interacts with the information being provided by the Affiliate, and get’s
redirected to the Brands website if they like a Product or Service
4) Upon landing on the Brands Website if the user decides to convert, then the Brand pays the Affiliate a Commission on
the Conversion

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 For example - Let’s look at Trivago

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 Now search for a Destination & Click on View Deal

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 You will get Redirected to the Brands Website

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 The user can make a purchase from here

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 In the example - Identify the Affiliate & Brand

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 Nomenclature

1) Brand - when you interact with an Affiliate Network (discussed ahead) or an Ad Agency a Brand is also referred to as a
Merchant or an Advertiser

2) Affiliate - in the same above scenario an Affiliate will also be referred to as a Publisher.
There are different types of Affiliates that a Brand can connect with. This is discussed ahead

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 When is a Commission Paid to an Affiliate?

1) Sale (CPS)
a) Products with a lower AOV (Average Order Value)
b) Time taken from landing on the website to conversion is short (24 - 48 hours)
c) Facetime between the user and company before purchase is negligible or not required
d) For instance - retail e-commerce websites like Amazon, Flipkart and Snap deal
2) Lead (CPL)
a) Products with a higher AOV
b) Time taken from landing on the website to conversion is long (30 days minimum)
c) Facetime between the user and company before purchase is high
d) For instance - Edupristine or Software Businesses

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 Different Commission Structures

Variable Percentage depending on Product Category - https://affiliate.flipkart.com/commissions

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 Different Commission Structures

Fixed Amount on Sale

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 Different Commission Structures

Tiered Commission on Sales

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 Different Commission Structures

Hybrid Model

Paying for Sales & Leads

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 Let’s look at examples of Different Affiliates

Bloggers - Harsh Agrawal (www.shoutmeloud.com)

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 Cont.

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 Vloggers - Geeky Ranjit (https://www.youtube.com/user/geekyranjit)

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 Vloggers - Geeky Ranjit (https://www.youtube.com/user/geekyranjit)

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 Coupon & Cashback Websites

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 Coupon & Cashback Websites

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 Affiliate Networks (Discussed Ahead)

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 Discovery Websites - Hoppingo (www.hoppingo.com)

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 Discovery Websites - Hoppingo (www.hoppingo.com)

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 Let’s work on a Case Study

You have a Travel E-Commerce Company which allows transaction on its website for fixed Holiday packages and Travel
products/gears. Currently you specializes in Domestic & International Holiday Packages and have good traction but has
limited business in Travel gear vertical. You are interested in other ways to monetizing your website. So you want to
consider exploring Affiliate Marketing as a new channel.
 Task:
1) Go to Jabong.com, and identify some relevant products that you can promote on your website
2) Once you’ve identified the product, copy the entire Jabong URL for that product
3) Access the VCommission Account and setup your Affiliate Tracking

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 VCommission LogIn

1) Go to VCommission - this is an Affiliate Network (will be explained ahead)

2) Click on Login

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 Explore the browse/Search Section to Identify the Brand

 Click on Offers >> Browse/Search

 Search for Flipkart

 Click on the link under the name column

Click on Jabong.com CPS – India

Or
you can search for any other
ecommerce player and look for
offers that does not require
approval to run under affiliate
program

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 Add the Product Link and Get the Tracking Code

1) Click on Add Deep Link 3

2) Add the Jobong Product Link in the “Add Deep
Link” section

3) Select your Tracking Link and promote the

product
1
on your website

4) You can source images from the Web

While promoting the product

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 How does Tracking Work?

1) An Affiliate conversion involves a) Merchant b) User c) An Affiliate

2) The merchant provides the Affiliate with a unique URL to promote their online store
3) This unique URL generally includes a number at the end which helps an Affiliate Tracking software identify the Affiliate
4) After identifying the Affiliate the conversion is then attributed to the Affiliate
5) For instance, an Affiliate URL can look like this: www.bewakoof.com/tracking=5432
6) If an Affiliate is promoting the above link on Facebook or in its own website, and if a user clicks on the link, Bewakoof
will know that the user came from Affiliate 5432’s website

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 Affiliate Networks

An Affiliate Network is a business that holds a huge list of Affiliates and a huge list of Brands belonging to different
categories. The Network generates revenue by taking a percentage from the Commission the Merchant pays the Affiliate
indirectly

Pros:
 Reduced Cost - a brand does not have to invest additionally in man power since the Network helps manage the Affiliate
Program
 Pay on Performance - the brand pays the Affiliate Network only when a Sale or Lead is generated
 No Tracking Software expense - an Affiliate Network will provide the Brand and Affiliate with a tracking solution to
measure performance
 Easy Signup - easy method to Signup for both Brand & Affiliate since majority options are available in one place

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 Affiliate Networks

Cons:
 Unaware of Affiliate - details of the Affiliates are never exposed to the Brand. So the brand is completely unaware of
which Affiliate is promoting them
 No Rapport - since the Brand is unaware of the Affiliate promoting them there’s no possibility of relationship being built
 Expensive for Brand - inorder for the Brand to incentivize the Affiliate better, the Brand will have to pay much more
considering the margin the Affiliate Network retains
 Human Intervention - since Human Account Managers are involved, there’s a clear case of biasness when a Network
works with two brands from the same category

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 Affiliate Networks vs In-House Affiliate Program

A. Affiliate Network - as a business that’s just starting up, this would be the ideal way to get started with your Affiliate
Program. It helps reduce the cost and time behind set up.

An Affiliate Network is the best way to get started with recruiting the 80% of Affiliates that will generate 20% of your
business

B. In-House Program - once an Affiliate Program is growing the business can start taking control and run it In-House. In this
scenario, the business can internally recruit the 20% Affiliates that will generate 80% of the Affiliate revenue

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 Examples of Affiliate Networks

A. Indian Affiliate Networks:

VCommission, PayOOM, DGM, Interactive Avenues, Resultrix, ClickZoot, Komli

B. International Affiliate Networks:

Commission Junction, LinkShare, ClickBank

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 Managing Affiliates

a) Treat Affiliates as Business Partners

i. Education on Products
ii. Identifying who is the right target audience
iii. Help in writing copy for the affiliate and vetting landing pages
b) Help on Closing Sales
i. Discounts
ii. Cross-Selling affiliate content with yours
c) Dedicated Communication
i. Always have open lines of communication
ii. Transparency between transactions and payments
iii. Updating them for each campaign that you are doing

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 Thank You !

care@edupristine.com
www.edupristine.com

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