William J. Tobin pioneered the first affiliate programme for PC Flowers & Gifts in 1989. The concept gained global recognition with the launch of Amazon's partner programme in 1996. Since then, the industry has evolved steadily, driven mainly by online retail. Today, affiliate marketing is a multi-billion-dollar industry poised for continued growth and innovation in the future.
Around 15 million retailers worldwide rely on affiliate marketing
16% of all online orders are generated through affiliate marketing
The affiliate market is growing strongly, by around 15% in 2022
Affiliate marketing is a performance-based strategy where advertisers collaborate with publishers to promote their products or services.
In affiliate marketing, companies (advertisers) collaborate with affiliate partners (publishers) to promote and sell their products or services. Affiliate partners earn a commission for every sale or action resulting from their advertising efforts. This means partners are only paid when specific successes are achieved. For companies, affiliate marketing offers an effective way to expand their reach and boost sales, while providing publishers with a source of income.
An affiliate network is a platform that facilitates the management of partnerships between companies (advertisers) and their affiliates (publishers). The network offers essential tools such as link tracking and ensures accurate commission payments.
Affiliate marketing offers numerous benefits for advertisers as well as publishers.
A͏fii͏liate marketing only incurs costs when actual purchases are made.
An affiliate pro͏gramme enables companies to reach new target groups and more potential customers.
All clicks and sales can be tracked and precisely attributed to publishers. This enables you to identify which collaborations are successful and which are not.
Affiliate marketing can enhance customer trust, as customers are more likely to make a purchase based on a recommendation from a reliable source.
Affiliate marketing operates on a straightforward premise: an advertiser (such as an online store) collaborates with publishers (such as blog owners) to market and sell products or services. Publishers earn commissions for sales or actions resulting from their promotions. These partnerships operate on a performance-based model, offering companies a cost-effective way to expand their audience and increase sales.
A company establishes an affiliate programme through which it empowers publishers to promote its products or services. Publishers are provided with an affiliate link to include in their promotions. When a customer clicks on the affiliate link and completes a purchase (or another predetermined action), the publisher earns a commission.
With affiliate marketing, advertisers face minimal risk, as payment is only made for predetermined actions (usually purchases). The partner programme enables the company to reach new target groups and more potential customers, thereby expanding its reach. Through affiliate marketing, it's possible to precisely identify which partnerships are successful and which are not, as all clicks and sales are tracked and accurately assigned to the publishers. Furthermore, the fact that publishers advertise a product or service on their website can enhance credibility and trust among potential customers, making purchases more likely.
Affiliate marketing is the ideal channel for companies that want to advertise their products on an additional channel and increase their sales and reach.
Affiliate marketing is also suitable for bloggers and influencers who want to expand their content with affiliate links in order to generate additional income.
Last but not least, affiliate marketing is interesting for publis͏h͏ers and website operators who want to earn a commission by placing affiliate links on their websites.
An affiliate network is a important element to make affiliate marketing work. It serves as the intermediary between advertisers and publishers, facilitating their connection. The affiliate network plays a vital role in tracking and reporting, commission processing, and supplying marketing materials for publishers.
Commissions to publishers:
Publishers receive a commission for each sale or lead they refer.
Network fees:
There are costs for using an affiliate network.
Additional advertising costs:
There might be additional advertising costs if special promotions are arranged with publishers.
Creative costs:
The creation of advertising materials such as banners, text links or landing pages may incur costs.
Agency fees:
If an agency is commissioned for the affiliate marketing channel, there are costs involved, but the agency usually takes on all the work.
The main difference between affiliate marketing and influencer marketing lies in how partners are compensated. In affiliate marketing, partners earn a commission for each transaction generated through their unique affiliate links, usually a percentage of the purchase price. In contrast, influencers in influencer marketing are paid to showcase products or services to their followers. Payment methods can vary, including a one-time compensation, complimentary products or services, or a blend of both. It's worth noting that influencers can also participate in affiliate marketing alongside their influencer activities.
Mandatory labeling:
It is important that advertising is recognisable as such. For this reason, a publisher must label its posts and links as advertising.
Data protection:͏
Publishers must comply with the applicable data protection regulations and make sure that they process the personal data of their users lawfully.
Use of your rights:
When advertising products or services, publishers should take care not to provide misleading information and to comply with legal requirements for consumer protection.
Copyright:
Publishers may not use copyrighted content without the corresponding permission of the copyright holder.
