People who have tried to know how to income from online or the internet must have heard the term “Affiliate Marketing”. Maybe most of the people don’t know what it is or how to do it, but there are also many people throughout the world who are expert in this.
“Affiliate Marketing” is selling or promoting other people’s or company’s products and in exchange for this selling or promoting earn some commission. Which means It is a way of earning money by just only promoting or selling other’s products. Suppose Afia has a T-shirt business but she is not doing well because her business didn’t reach people properly. So she went to Asif, who is a renowned clothing shop owner of her area. She proposed him ten percent of the price as commission for selling each of her T-shirts. In this example, this marketing is called “Affiliate Marketing”. Here we can see that, there are two parties in this kind of marketing. One is the product creator and seller, the other one is the affiliate marketer.
Before understanding the payment process or methods of this marketing, we need to understand what an affiliate network is. The network part of this marketing is very important. An “Affiliate Marketing” guides include networks because a network does the job of a negotiator between the seller and the affiliate. In order to know how fast networks usually pay we need to know these three facts first:
- Affiliate Marketing Payment Model
- Affiliate Payment Solutions
- Affiliate Payment Terms
Affiliate Marketing Payment Model
Affiliate payment is the payment that the Affiliate network must have to pay to the participators in the network which means the affiliates. Rewarding the affiliates is the most important part of “Affiliate Marketing”. For this rewarding, you must have to choose the best payment model. There are four ways or steps in which a man or a company can reward an affiliate. Which are as follows:
Pay-per-sale means giving the affiliate a certain percentage of commission of the product’s total price after every sale. How much an affiliate will get depend on both of the seller or creator and the affiliates. Online shopping sites follow this payment model to reward their affiliates.
Sale is not the only way of paying the affiliates. Free trials and free subscriptions are also useful. When you convinced a client to buy your product after having a free trial, then this client is very much sure to buy your product. It would be easy to make them paying customers. In this way, the business will get some profit from these kinds of leads. You can reward them then per lead.
This payment model is useful for service companies, real estate agencies, home-contractors, financial consultants, etc. In this process the affiliate will use a certain contact number for getting clients. An affiliate will get his or her commission as per calls. The more call and clients one will get, the more commission it will be for him or her.
Combined Payment Models
Now you have an idea about all the three models of payment. A seller or creator can use two or all the three models combined for rewarding the affiliate. This system of having more than one payment model is called the combined payment model.
Affiliate Payment Solutions
We have already discussed the payment methods of the affiliates. Those methods are the solutions for payment of the affiliates. Suppose an affiliate is working on a pay-per-scale for a certain online shop. The affiliate writes product reviews for that online shop. Now if a client clicks on his reviews, and buy the product then the affiliate will get the promised percentage of the total price of the product by the seller or creator. So all those four models are the payment solutions of an affiliate.
Affiliate Payment Terms
Besides payment models and cookie life, your affiliate program payment terms need to specify the commissions you will pay to your affiliates. These are entirely up to you, and the best way to determine them is to analyze your own business, expenses, and profit margins. An affiliate has to abide by some terms and conditions. The affiliate also needs to follow all the payment terms in order to get his rewards properly. Terms of payment vary seller to seller, affiliate to affiliate. It depends on how the seller and the affiliate set their terms before working together.
When an affiliate approaches a seller or vice-versa, they need to set terms of payment, which will contain how much commission the affiliate will get, how long the affiliate needs to work, will the affiliate be paid daily, weekly, monthly or yearly. After setting all these terms they also need to set the process of the affiliate’s payment. Will the affiliate be paid per sale or lead or call or combined of two or three models? – this must be ensured in the affiliate payment terms. If the affiliate can’t do his job properly what penalty he will get must set in the terms. In this way, the seller and the affiliate should have to set up “Affiliate Payment Terms”.
If these three facts are followed properly by the seller and the affiliate, then the network won’t face any kind of delay in the payment process for sure. In the year 2019, the whole world’s affiliates and the sellers who use the affiliates for their selling and promoting are well aware of these three facts. They all follow these three easy steps and keep the network running. For this reason, the affiliates now get their payment from time to time as per the terms.