Previously, affiliate marketing was referred to differently, replacing “affiliate” with “results” or “affiliation,” establishing a key strategy in online marketing to promote your articles or services. For all advertisers, it’s an excellent way to grow your brand and increase your website traffic.
The pioneers of this idea were Jeff Bezos in the 1990s, who implemented an excellent strategy to link websites with Amazon sellers. This tactic gained popularity and began to be used by new companies in 2014.
What Is Affiliate Marketing?
Affiliate marketing has become an online strategy focused on achieving significant results for the brand.
In this case, advertisers promote their articles or services by implementing advertising campaigns on websites or blogs that are affiliated. This allows the advertiser’s company to make its content go viral and receive a portion of sales commissions.
The participants in this system are as follows:
- Advertiser: Individuals responsible for showcasing the company’s products to the public.
- Affiliate or Publisher: Websites that promote the content of an advertiser.
- Affiliate Program: A community that connects advertisers with affiliates.
- End Consumer: The customer who makes a purchase through the affiliate link.
This tool operates under the conditions of “cost per action” (CPA), where advertisers make a predetermined payment to achieve significant results rather than paying for ad campaigns or views.
How Does an Affiliate Program Work?
Are you interested in how this affiliate system works? Well, in this section, we’ll explain it a bit. Platforms use registration extensions, known as cookies, which serve as tracking tools for information, in this case, tracking links from affiliate websites and saving them.
With this tool, it’s possible to determine if a user interacted with your website or arrived through the ads. Also, when users fill out registration forms, this data serves as part of the system’s records.
Affiliate marketing depends on users who enter the affiliate website, make a purchase, and have their experience on the website tracked by cookies, which later generates commissions for generating satisfied customers.
Main Affiliate Programs in Spain
If you are in Spain and considering using affiliate marketing, you should be aware of several programs, which we’ll discuss below:
- Awin: This Spanish platform combines the options of other networks like Zanox and Affilinet, which are widely used in the country, to distribute your advertisements across various distribution areas.
- Commission Junction: It has a user-friendly and optimized interface for your affiliate system, providing you with the necessary resources to work effectively.
- TradeTracker: Offers more than 5,000 programs with approximately 250 advertisers in various sectors, providing options to position your website.
- Amazon Affiliate Program: This program is very popular among marketers interested in implementing affiliate marketing tactics due to the communities and blogs it offers.
Affiliate Marketing: A Win-Win Model?
This digital tool is often seen as a plan where both sides, advertisers, and affiliates, benefit.
Advertisers expand the product’s image to gain more customers and increase sales with promotions, paying only for secure actions like registrations or sales. Affiliates provide articles and earn commissions for tasks performed by customers on your website.
It’s essential to clarify that this tool brings benefits to both sides but can also have its pitfalls if not applied correctly.
Advantages and Disadvantages of Affiliate Marketing for Affiliates
From the perspective of affiliates interested in using this digital tool, it’s crucial to know the advantages and disadvantages of affiliate marketing, which will be shown below:
Advantages for Affiliates:
- No need to manage inventory or create post-sale projects; you should focus solely on promoting the merchandise assigned by the advertiser.
- To minimize stock intervention, the risk of loss is minimal.
- Flexibility in programs: You have the freedom to participate in affiliate programs, selecting the highest commission-paying programs and those with products that are easy to sell. Of course, if you don’t like the system, you can exit and find a better one.
Disadvantages for Affiliates:
- To maintain profitability and customer trust in the product, you need precise strategies and a thorough analysis of promotions, ensuring that your proposals are credible and serious to drive future conversions.
- It’s necessary to have unique content, something specialized in a specific topic, for the promoted products or services to be successful.
- Commissions depend heavily on sales flow; if you have a bad day, you may have low earnings at the end of the season.
Advantages and Disadvantages of Affiliate Marketing for Advertisers
Now it’s the advertisers’ turn to understand the benefits and drawbacks of affiliate marketing:
Advantages for Advertisers:
- It’s an excellent proposal to increase user traffic to your website.
- You don’t need a significant investment; having a large group of affiliates can lead to substantial profits.
- It favors conversion with the correct use of digital and affiliate marketing strategies.
Disadvantages for Advertisers:
- If you don’t understand the brand’s purpose, your reputation may be vague.
- You must control other affiliate systems if you are in various fields.
- Affiliates don’t work for a single audience; they cater to various audiences interested in the products you offer.