Affiliate Marketing


What is Affiliate Marketing?

Visiting a marketing website, joining a marketing summit, or reading books about marketing and advertising are typical places that you may encounter ‘Affiliate Marketing’. This form of advertising has been commonly used for decades within the marketing industry and most of the marketing experts have integrated this form within their integrated marketing plans. Although it is commonly used, there are still many questions about what affiliate marketing is and how it can contribute to a store’s bottom line.

Definition of ‘affiliate’

If we look at the definition of ‘affiliate’, according to Oxford dictionaries, it means to “officially attach or connect to an organization”. This form of connecting is a common trend that we see within the international business landscape. More and more companies are finding ways to cooperate to become stronger and more sustainable long term, especially when competing with larger companies. An effective way to do this is through affiliate marketing, which can be defined as: “A marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals” (Oxford, 2019).

All about partnerships

Affiliate marketing is about companies working together to drive as much revenue for individual stores. The stronger the partnership and the closer they work together, the better the results expected. Within these partnerships, you need to distinguish two main parties: (1) advertisers and (2) publishers.

  1. Advertisers are the stores that want to sell their products and services with the help of affiliate marketing (or other means of marketing and promotion);
  2. Publishers are websites and platforms promoting the advertising materials of the advertisers to their visitors and members, in order to generate traffic and sales.
When these parties match their customer base with targeted marketing campaigns, the best results are achieved. Different target groups require different messages and promotions. This close partnership is required to make the best of an affiliate relationship.

Affiliate Marketing in eCommerce is a win-win

Although myWorld, and one of its brands Cashback World, also apply this affiliate marketing business model to their offline programs for SME and chain stores, the main use of affiliate marketing is within the eCommerce business. For online Advertisers and Publishers, affiliate marketing activities are easily automated. This is an simple way to generate additional traffic and sales, or to earn additional income by opening your visitor and customer base to advertisers. By partnering in this efficient way, stores, websites and platforms create a unique win-win situation for all parties involved.

No cure, no pay

In most cases, the main advantage for advertisers participating in affiliate marketing is that they only pay for the generated traffic or sales. There are several remuneration models. The main commission models that are offered to publishers, are:

  • CPC - ‘Cost per Click’, meaning that the advertiser pays for the clicks generated on the promotion materials and result in more online traffic.
  • CPL - ‘Cost per Lead’, meaning that the advertiser pays the publisher for every lead that is generated. Leads can be defined by leaving contact details behind on the advertisers’ page or asking for a meeting or consult.
  • CPA / CPS - ‘Cost per Acquisition’ / ‘Cost per Sale’, meaning that the advertiser pays the publisher for any revenue generated by the promotion.
By applying one of these commission structures to their marketing activities, the advertiser can achieve a larger reach and stronger brand recognition by paying a fee for the potential revenue or traffic generated from these marketing activities. When applied to the digital world, results are measurable making affiliate marketing a much more effective and efficient marketing tool than traditional marketing activities like print ads and billboards.

Affiliate Marketing: a must in every marketing plan and for every company taking its eCommerce business serious!

Read more about all possibilities within Cashback World E-Commerce here...


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