Affiliate Marketing Basics
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| Affiliate Marketing Guideline |
What is Affiliate Marketing?
Affiliate marketing is an online earning model where individuals earn commissions by promoting products or services from other companies. You help connect customers to businesses, and in return, you get paid when a specific action is completed—such as a sale, sign-up, or app install.
Key Roles in Affiliate Marketing
Advertiser (or Merchant)
This is the business or brand that owns the product or service. Advertisers create offers and marketing strategies, and they only pay affiliates when a specific action is successfully completed—like a sale, registration, or application.
Customer
The end-user who purchases a product, signs up for a service, or completes any required action based on the affiliate’s promotion.
Affiliate Marketer (or Partner)
This is the individual or business that promotes the advertiser’s offers. Their goal is to drive traffic and encourage users to take immediate action—whether it’s placing an order, registering, or filling out a form.
Affiliate Network
A platform that connects advertisers with affiliate marketers. It acts as a middleman, hosting various offers from companies and allowing affiliates to choose what to promote. Examples include networks offering health, finance, dating, and gaming offers.
Common Terms in Affiliate Marketing
Offer
A product or service available for promotion. Offers are grouped into categories or "verticals" such as e-commerce, finance, health, or travel. Each offer includes a payout structure and promotional guidelines.
Conversion Rate (CR)
This metric shows the percentage of visitors who take the desired action on a page—such as making a purchase or signing up—compared to the total number of visitors. A high conversion rate means a more effective campaign.
Types of Conversions & Payout Models
SOI (Single Opt-In)
A conversion is counted after the user completes one step, such as submitting an email, filling out a form, or requesting a free sample.
DOI (Double Opt-In)
Two steps are needed for a conversion: the user must submit their information and then confirm it (usually by clicking a link in an email). Additional steps might include downloading an app or reaching a certain level in a game.
CPS (Cost Per Sale)
Payment is issued only when a sale occurs. This can be a flat fee or a percentage of the sale value.
CPI (Cost Per Install)
Affiliates earn a commission when someone installs a mobile app through their referral link.
CPL (Cost Per Lead)
Affiliates are paid when a user provides their data, such as filling out a form, signing up for a newsletter, or registering for a service.
