TAILIEUCHUNG - Lecture E-commerce and e-business for managers - Chapter 9: Affiliate programs

Chapter 9, Affiliate programs. The following will be discussed in this chapter: How an affiliate program works, selecting an affiliate-program reward structure, attracting affiliates, monitoring an affiliate program, affiliate solution providers, web-site “stickiness”. | Chapter 9, Affiliate Programs Outline Introduction How an Affiliate Program Works Selecting an Affiliate-Program Reward Structure Pay-Per-Click Model Pay-Per-Lead Model Pay-Per-Sale Model Multi-Tiered Model Hybrid Model CPM (Cost-Per-Thousand Model Attracting Affiliates Monitoring An Affiliate Program Affiliate Solution Providers Commission Junction LinkShare Be Free ClickTrade Web-site “Stickiness” Outline Becoming an Affiliate Examples of Affiliate Programs Affiliate Program Examples By Industry Costs and Taxation of Affiliate Programs Affiliate-Program Directories and Search Engines Chapter 9, Affiliate Programs Introduction Affiliate program A form of partnership in which a company pays affiliates (other companies or individuals) for prespecified actions taken by visitors who click-through from an affiliate site to a merchant site In this chapter, we discuss: Costs Benefits Program reward structures Program-building options Tracking and affiliate solution providers Directories and search engines that provide affiliate- and partnering-program resources How an Affiliate Program Works New income streams Merchant The company that advertises on another company’s site Affiliate The company hosting the advertising in return for a reward based on predetermined terms Affiliates act as an extended sales force How it works Merchant places banner on affiliate’s Web site When a person clicks through to the merchant’s site via the advertisement on the affiliate’s site and makes a purchase, a commission on the sale is typically awarded to the affiliate “Win-win" situation Selecting an Affiliate-Program Reward Structure Program reward structures Pay-per-click Pay-per-lead Pay-per-sale CPM (cost-per-thousand) Multi-level, or multi-tiered Hybrid model Implementation of appropriate reward structure(s) depends on the type of

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