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Specifically, in this post I will address the following: These issues have not seen much discussion within the online marketing community, certainly not as much as SEO, content marketing, PPC and other marketing channels.We read online that many companies over the past decade have relied on affiliates to produce sales for their brands.One of the reasons brands fail to implement a good affiliate marketing strategy is that they underestimate two key skills: negotiation and persuasion.A good affiliate manager knows how to convince an affiliate to promote his product and to demonstrate that affiliates can earn more money with a CPA deal rather than a CPM deal.If affiliates don’t make any sales and their reporting system states that a campaign had 100,000 impressions, 10,000 clicks, and 0 leads or sales, then that means the affiliate won’t be paid, nothing more.Affiliates and networks might say to their clients that they can produce 1 billion impressions, which is just jargon. Even though commissions can be very high, affiliates still want to negotiate the best deal.It’s simply quicker and easier for an affiliate to generate revenue by counting impressions than counting sales.In the conversion funnel, every campaign starts with impressions, few of them become leads, even fewer become sales.
While cost-per-actions (CPA) and cost-per-lead (CPL) deals can be risk-free for brands because they are based on performance, they are not always ideal for affiliates, which prefer to get paid per impression (CPM).
But how exactly have these companies been successful?
Assessing whether affiliate marketing is right for you should be straightforward.
You should look at your product and how you could promote it to affiliates.
Using cloud storage as an example, you will see a number of large US companies such as Just Cloud and Sugar Sync as well as smaller niche cloud storage products such as Backup Genie.
Sugar Sync offers a revenue-sharing type of commission.