Affiliate programs as a way of making money: what are they and who may find them beneficial?

Affiliate programs as a way of making money: what are they and who may find them beneficial?

Today Internet is a platform where businesses actively develop. A wide variety of companies, projects, and sites offering goods and services makes market players to take a serious approach to brand promotion and customer acquisition. Affiliate programs give a helping hand here. Read further in the article about affiliate programs and how one can use them to grow a fortune.

What are affiliate programs?

What are affiliate programs

An affiliate program is a type of business collaboration between a seller/supplier (advertiser) and web masters (affiliates) that advertise and promote goods and services. Advertisers pay money to affiliates for attracting customers to online stores, casinos, and other sites.

Today affiliate programs are offered by:

  • online stores;

  • online casinos;

  • authors of courses, trainings, seminars;

  • specialists in different fields that provide consultancy services (lawyers, psychologists, doctors);

  • bloggers;

  • financial institutions;

  • entertainment facilities;

  • participants of the tourism market, etc.

Who can participate in an affiliate program?

 affiliate program

The format of collaboration “advertiser – affiliate” is a win-win situation for both sides: the business or the website grows its customer base, sales volume, and as a result increases revenue, and the webmaster makes an income without extra investments and efforts.

The following people can participate in affiliate programs:

  • owners of online stores;

  • web masters;

  • bloggers;

  • traffic arbitrage specialists;

  • administrators of forums, communities, and social media groups;

  • active users.

Affiliate programs imply the following principle of interaction: a website or a company (supplier of goods/services) agrees on the partnership with a website owner. The advertiser provides the affiliate with advertising materials (banner ads, teaser ads) and unique links subsequently used by potential customers. The affiliate publishes them on his website, blog, or different communities. When visitors of those Internet pages click on the link and make a certain action (make a deposit at the online casino, buy a product, or download software) on the advertiser website, the company pays the affiliate a fixed amount or a percentage from the deal.

To make the most use of such collaboration, affiliates should choose the field and products that are relevant for the audience of their website/blog, learn to use marketing tools, attract active users, and regularly create new content, and generate traffic.

Types of affiliate programs

Types of affiliate programs

  1. Cost per click (CPC). Web master publishes advertising material (teaser ad, banner ad, or link) on his website. He receives income each time a user clicks on it.

  2. Cost per sale (СPS). Web master gets remuneration when a customer buys a product. Online stores and casinos use this form of collaboration. For example, a gambling site pays the web master a percentage of revenue obtained from every newly brought player, i.e. the webmaster makes money in case the player loses.

  3. Cost per mile (CPМ). In this affiliate model, impressions or views of advertising materials are paid. Advertiser pays for 1,000 ad views.

  4. Cost per view (CPV). Advertiser pays the webmaster for ad views. Such ads are not obtrusive. Users decide for themselves whether they should watch them.

  5. Cost per action (CPA). Advertiser remunerates the affiliate for actions fulfilled by the user after clicking the link. For example, the user can fill in the questionnaire form, register on the website, apply for a loan, make a deposit, subscribe to emailing, etc. This affiliate model is usually used by dating agencies, currency exchanges, gambling facilities.

  6. Cost per install (CPI). Commission is paid in case the user downloads software offered by the advertiser. There is also an option when the affiliate receives commission in case the user downloads and installs the program.

Besides, there are single-tier and multi-tier affiliate programs. The first model envisages that a commission is paid directly for every brought user/customer.

In multi-tier models, affiliates earn a commission for sales made by referrals. The scheme works as follows: a person acts as an affiliate for the advertiser and makes money for actions of brought users; if other people (referrals) register with the affiliate program upon his recommendations and make sales, the affiliate gets a second-tier compensation (percentage of their revenue).

Benefits of affiliate programs

Benefits of affiliate programs

Affiliate programs can be a source of both additional and main income. People of different age and interests can grow their fortune with affiliate programs.

Advantages of affiliate programs:

  • no need to develop your own product or service;

  • no need to come up with an advertising concept: the advertiser provides all ad materials;

  • no routine tasks (such as checking emails, processing purchase orders);

  • passive income: while you are sleeping, having a rest, bringing up your kids, users click on your links and build up your capital;

  • remote work: one can travel around the world with a computer or smartphone and make money;

  • possibility to work with several affiliate programs. One can promote different goods and services at the same time;

  • much free time. If affiliate programs are the main source of income, one can independently choose when to work and when to have a rest;

  • no need in initial capital;

  • high income that can amount to thousands of dollars.

Affiliate programs in gambling

Affiliate programs in gambling

Today the market offers a great variety of online casinos. To make the business flourish, gambling sites should attract new customers. Here affiliates come to help by advertising gambling products and attracting fans of casino games to relevant websites.

Affiliate programs of online casinos offer the following options for collaboration:

  • commission for the registration of new players;

  • percentage of the revenue gained by the casino from brought players;

  • percentage of deposits made by players; in this case the sum of the deposit is important;

  • hybrid model, when affiliates earn a fixed fee for the registration of a new player and percentage of casino revenue.

Conclusion

Affiliates programs are some of the most efficient customer acquisition techniques for online portals and a beneficial way of making money for specialists engaged in the promotion of goods and services. All interested parties receive benefits from this format of collaboration.


Learn more about affiliate marketing in the gambling industry at Minsk iGaming Affiliate Conference.

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