What Is an Affiliate Advertiser, and How Do They Make Money?

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Introduced at the beginning of the digital era, affiliate marketing has withstood the test of time. In its simplest form, this performance-based marketing method connects affiliate advertisers who want to sell their products or services with affiliate marketers to promote said products and services. This blog discusses affiliate advertisers and how they earn money.

Affiliate Advertisers vs. Affiliate Marketers

Affiliate marketers are digital publishers who promote products or services, that they typically do not own, in return for a cut of the conversion. Affiliate marketers earn a commission on all sales, and can also make money on a pay-per-click basis. The products or services they promote are owned by affiliate advertisers.

As product owners, affiliate advertisers look to affiliate marketers to promote their products. Smart affiliate advertisers know that recruiting high-quality marketers is a must when earning sizeable income through affiliate marketing.

The Role of the Affiliate Network

With the continued rise of affiliate marketing, affiliate networks have become a great way for advertisers and marketers to connect and earn money. Networks are databases of affiliate advertisers’ products and offers that serve as intermediaries between advertisers and affiliate marketers. Networks recruit both marketers and advertisers, introducing the two parties, and often handle all payments, tracking, and reporting.

Savvy advertisers utilize affiliate networks to efficiently and effectively source affiliate marketers. While advertisers typically have to pay a fee to be a part of the network, the immediate access to marketers can pay huge dividends.

How Affiliate Advertisers Make Money

As product owners, affiliate advertisers earn money on sales. With minimal, if any, upfront costs to enlist the help of affiliate marketers, the best way for advertisers to increase their income is to utilize a large volume of quality marketers. The hope is the more eyeballs they generate, the more conversions they will receive.

While affiliate marketers are crucial to advertisers’ success, many advertisers choose to drive traffic to their products and services in another way. Affiliate advertisers can bypass the affiliate network and work directly with a pay-per-click (PPC) ad network. A PPC network is a network that disperses product offers throughout their ad network. Both affiliate marketers and affiliate advertisers bring offers to PPC networks. Regardless of the use of an affiliate network or not, affiliate advertisers will only generate profit through offer conversion.

Best Practices For Affiliate Advertisers

As an affiliate advertiser, the end goal is increasing sales. The following strategies can help you boost your revenue:

  • Use multiple networks. By putting all of your eggs in one basket, you’re limiting yourself. Utilizing several affiliate networks is an excellent strategy for increasing demographic reach for your offers.
  • Test and refresh your offers. A/B testing allows you to analyze the offers that you put out to optimize for offer conversion. By continuing to make adjustments according to your tests results, you can cater offers to your targeted audiences.
  • Determine the best traffic sources. Choosing the right traffic sources for your offer and audience can increase your sales and profitability. Take the time to test different sources and see what works best.

With great offers and the right affiliate marketing strategies, affiliate advertisers can boost sales and income. Drive more qualified leads to your products and nurture the sales you seek with these tips.  

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