Affiliate Marketing - Affiliate marketing and how to apply it effectively

Ngày đăng: 17/11/2021
This form is called affiliate marketing because affiliate marketing is an advertising model that connects sellers with marketers who are willing to invest to sell the seller's products. In other words, affiliate marketing connects a business with a product to sell with a marketer who can sell that product.

This form is called affiliate marketing because affiliate marketing is an advertising model that connects sellers with marketers who are willing to invest to sell the seller's products. In other words, affiliate marketing connects a business with a product to sell with a marketer who can sell that product.
Affiliate Marketing, also known as Affiliate Marketing, is an effective but unfamiliar form of marketing in Vietnam. So what is Affiliate Marketing and how can it be applied effectively? Let's find out with BrandInfo through this article!

1. What is Affiliate Marketing?

 Affiliate Marketing

Affiliate Marketing is understood as Affiliate Marketing, this is one of the effective forms of making money online that is applied more and more popularly. This type of marketing is quite new in Vietnam, but combined with the development of e-commerce, e-wallets,...
Affiliate Marketing has the opportunity to develop and become a very effective method of making money online.
This form is called affiliate marketing because affiliate marketing is an advertising model that connects sellers with marketers who are willing to invest to sell the seller's products. In other words, Affiliate marketing connects a business with a product to sell with a marketer who can sell that product.

2. Components participating in Affiliate Marketing

2.1. Advertiser is a seller or merchant

This could be the creator of the product, the seller, the supplier, the brand, or all of them.
It could be a company or an individual selling products and/or services. They are looking for specific users and traffic for their products/services leading to leads or sales. The company or individual offers a commission for each product they sell through a referral.
The level of commission also depends on the price of the product and the sales volume

2.2. The affiliate is the publisher

They have relevant websites or traffic sources for your target audience and generate revenue by promoting advertiser offers (products/services).
Then get a cut or fixed cost to generate the conversion. However, whether a visitor buys a product or not depends on many factors such as content, website, promotions and popular feedback on the quality of the product/service.

2.3. Affiliate network is a communication relationship

Affiliate networks act as a middleman and act as a broker for advertisers, almost like an agency for affiliate marketing. Affiliate networks recruit affiliates to promote products and/or services.
The network specializes in finding and managing both advertisers and affiliates so that advertisers can freely focus their products/services on publishing and promoting offers.

2.4. Users are customers

They make purchases online, fill out your surveys, sign up for your services, and more. Sometimes called a visitor,
traffic or target audience. The whole process can fail if the consumer doesn't buy the product because there will be no commission to distribute and no revenue to share.

3. How to make money from Affiliate Marketing

3.1. Affiliate marketing is based on performance.

Affiliate marketing is one of the fastest growing passive income generating methods in the modern digital marketing landscape. The majority of bloggers/advertisers prefer affiliate marketing in the early stages.
Affiliate marketing allows you to make money even while you are sleeping. Bloggers often use SEO and content to optimize their blog to get traffic to their website and monetize their blog.
Therefore, advertisers only pay when affiliates take a specific customer action.
In the context of e-commerce, this action is often an online purchase, which makes affiliate marketing very cost-effective.
For example, this is the commission when you do Shopee affiliate marketing

3.2. Payment methods for Affiliate Marketing

There are five common payment types for publishers.
Finding the right fit for your business model can take some testing and tweaking, but one of these five will help you get there.

Cost Per Action (CPA): means that the affiliate program will pay the publisher a fixed amount for each desired action (i.e. conversion) recorded.
Cost Per Sale (CPS): the offer means that the affiliate program will award a percentage of the sales proceeds to the publisher. This usually happens for offers where multiple products can be added to the cart and thus offset an affiliate for all items the user has purchased.
Cost-per-conversion plus Cost-per-sale (CPC+S): is a combined payment method where publishers are paid a fixed amount for each sale plus a percentage percentage of total sales.
This type of incentive incentivizes publishers to generate large amounts of sales while still providing them with a base payout per sale.

Cost-per-click (CPC): means you will pay publishers on a cost-per-click basis. For every click that affiliates send to your offer,
they will be paid a fixed amount per click.

Cost per thousand impressions (CPM): means performance marketing programs that pay affiliates per thousand impressions. Impressions are recorded when the impression pixel is "triggered" from the ad displayed on the linking site.
Amazon has had a strong affiliate marketing program since 1996.

It was one of the first such shows and is now one of the largest in the world.

Example: Amazon, which runs one of the largest e-commerce affiliate programs in the world,
pays affiliates a percentage of each “eligible sale”. Exact percentages vary, but according to the Amazon Associates website, affiliates can earn up to 10 percent.

The term "semi-qualified" (or its synonyms,
"qualified purchase") is important in the context of affiliate marketing because the advertiser (e-commerce seller) determines in advance what constitutes an eligible sale. When an affiliate agrees to promote a seller's product, the affiliate is accepting the seller's definition of "qualified sale".

4. Advantages and disadvantages of Affiliate Marketing

4.1. Advantages

Merchants get wider venues to sell their products and services, leading to more customers and more sales.

Sellers can get more customers without wasting time searching for them.
Programs that track aggregate statistics from affiliated websites provide reliable and current customer behavior according to trends and needs at no additional cost.
Affiliate marketing programs provide an easy way to generate additional income streams for publishers and website owners.
Sellers' product marketing banners generate instant sales for which they receive a commission.
It does not require a large investment in the part of the branch.
Affiliates don't have to worry about customer support, bookkeeping, and e-commerce related headaches because in affiliate marketing,
The sales unit handles all the affiliates needed to promote and resell the product.
For customers, they don't have to drive to a seller's or retailer's store to purchase a product or participate in a service provider's services

4.2. Disadvantage

There are some sellers that may incur high commission costs and poor setup and maintenance costs due to the affiliated coordinator/broker.
Affiliates may engage in false and misleading advertisements to receive sales commissions.
Unscrupulous affiliates may make statements and claims regarding products and services, which are completely false or extremely operating. In cases like these, sellers often get complaints and lose any user functionality.
Unscrupulous and unscrupulous sellers can arbitrarily close programs without notifying affiliates and without paying commission.
Sellers can schedule high commissions to attract new affiliates then reduce the commission rate after a week or two.
Textile affiliates can all use affiliate links and get paid a commission instead.
There is also false advertising, illegal commercial use of names, logos or trademarks.

5. Some effective ways to use Affiliate Marketing for newbies

5.1. Carefully analyze your customer data and revenue.

5.2. Choose the right affiliates for your company.

Recruiting affiliates is a time-consuming process if you're dedicated to doing it right. Of course, it's also a never-ending quest.
You should always pay attention to the affiliates that qualify for your program.

5.3. Contact your affiliates regularly.

Affiliates will be better equipped to promote your product or service to the right people.
Affiliates are more likely to join and less likely to leave if a helpful affiliate manager is assigned.
Affiliates can share their knowledge with you, which can help you guide other affiliates and work internally.

5.4. Be aware of the methods of linking and restricting them, if necessary.

Affiliates use a variety of methods to generate traffic. Here are the most common methods, according to the benchmark report:
SEO (69.2%);
Social networks (67.3%);
Blogging (64.5%);
Email marketing (41.5%);
PPC (34.3%).

5.5. Check your landing pages and offers regularly.

If you own your own landing pages and have affiliates that simply drive traffic, perfect. That means A/B testing elements of the page, including the offer itself, is particularly easy.
If you allow affiliates to use their own landing pages, which are rarer, work with those. Share your own experiment insights. After all, everyone is working towards a common goal.


Affiliate Marketing is a very effective and useful form of marketing for many different businesses and a way to help customers reach out more easily. Hopefully through this article BrandInfo has helped you better understand this form of marketing and be able to apply it in the future.
You can understand more Marketing articles at Brandinfo!

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