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Affiliate Marketing
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dgm university>>affiliate marketing


Commissions models:
The most dominant methods in affiliate marketing are as given below.

1. Pay/cost per sale: the commission model in which advertiser has to pay per sale to the affiliate

2. Pay/cost per action: the commission model in which advertiser has to pay per predefined action where action can be filling up a form or subscribing for a newsletter or any other action

80% of affiliate programs today use revenue share (Cost per sale) as compensation method. The remaining 19% use Cost Per Action.

Other commission models


There are some other commission models as well which very rare in present affiliate marketing and are getting diminished. These are as under:

1. Pay/cost per click(CPC/PPC): Commission model in which advertiser will pay affiliate on every click. There is no guarantee if the sales happen or not.
2. Pay per thousand impression (PPM/CPM): Commission model in which advertiser will pay affiliate on every impression. An impression is counted every time an ad appears on site.

CPC/CPM used to be more common in the early days of affiliate marketing, but diminished over time due to click fraud issues that are very similar to the click fraud issues modern search engines are facing today. Contextual advertising, such as Google AdSense are not considered in this statistic. It is not specified yet, if contextual advertising can be considered affiliate marketing or not.

CPC is very popular with search engine marketing such as adwords program by google, yahoo and msn.

CPM model is also in use nowadays with adbanner marketing programs.

 

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Case Studies...



"DGM has enabled Sainsbury's Bank to cut through and reach their target market with phenomenal success."
Victoria Blackmore, Digital Media Account Director, Universal



"Growth for theaa.com in this area has been spectacularly cost-efficient."
Ben Walton, Head of E-Commerce Marketing, The AA



"DGM and their affiliates are a valuable and important element to our online sales strategy."
Chris King, Head of Affiliate Sales, BT