What is Affiliate Marketing?What is Affiliate Marketing?

Affiliate Marketing offers you the opportunity to earn commissions by selling products or services offered by other companies. In the world, this form has been popular for a long time and has aggressively penetrated into Vietnam in the past few years.

So What is Affiliate Marketing? As well as How to do Affiliate Marketing Where to start?

Affiliate Marketing understood in Vietnamese as Affiliate Marketing, this is considered one of the forms make money online (MMO) is effective and is applied by many people. With Affiliate Marketing, there will be distributors (Publishers) and Suppliers (Advertisers).

As this business platform is gradually developing and popular in Vietnam, people are also getting used to online shopping, so Affiliate Marketing has soon been applied in the Vietnamese e-commerce market with Access Trade, Lazada, Masoffer, Zalora,… Although still quite new in the Vietnamese market, in the present and the future,  Affiliate Marketing is still the most effective method of making money online compared to other methods of making money online.

Components in the Affiliate Marketing model

There are usually 4 parties involved in affiliate marketing:

• Supplier (Advertiser/Merchat): people who have products and services and are willing to pay people to promote their products and services through online marketing channels
• Distributor (Affiliate/Publisher): individual or company promotes Advertiser products through social networks, blogs and receives commissions
• Affiliate Marketing Network: Affiliate network acts as an intermediary connecting product suppliers and affiliate marketers. Platforms provide: advertising links, banners, statistics, conversion rates, click rate management, commissions,…
• Customer (Consumer/End-user): the person who directly sees Publisher's advertisement and takes action (purchase, fill out registration form,…)

Suppliers (Advertiser/Merchant) include:

• Individuals or businesses capable of providing products and services from all business sectors such as: fast-moving consumer goods, food, time, electronics,… and services such as education, beauty, finance,…
• Suppliers must meet the requirements for supply and product quality as committed depending on the distributor's policy.

From the perspective of the goods supplier, form Affiliate Marketing as a distribution channel but simple, the working steps are not complicated. Just a pre-designed banner with full product information is enough to promote your products and services. And only when the product is sold do you need to share the commission with the distributor.

Distributors (Affiliate/Publisher) include:

• Organizations and individuals own websites with large, stable and reputable traffic.
• Organizations and individuals who are able to run advertising have high conversion rates from CPM, CPC to CPA.
• Organizations and individuals that use MMO and want to gain more profit from it Affiliate Marketing.

Distributors are people who understand the customer base – the people who visit their website the most, they know when traffic is high and the ability to convert effectively. Taking advantage of that, they access the supplier's Platform and pull products and services suitable for their customer base to their website. When a customer visits the distributor's website and clicks on the distributor's website, resulting in a purchase action, the distributor will receive a commission.

If one day, you are reading a book review on some website and suddenly Tiki's book advertising banners appear, it is very likely that this is the form Affiliate Marketing. In which, Tiki acts as a supplier and the website you visit is a distributor.

Depending on the policies and conditions in the agreement, the payment method between distributor and supplier will be different (CPS, CPL,…)

Customers (End Users) include:

Are the end users who use the supplier's products or services or take other actions required by the supplier.

Affiliate Marketing Network:

It is an intermediary platform that helps connect distributors and suppliers together, helps distributors monitor and evaluate the effectiveness of advertising and sales, and is also a place to provide technical platforms such as advertising links, banners,… and pay commissions to distributors.

Affiliate Marketing Program (Affiliate Program)

Lfa affiliate marketing system is offered by product suppliers, they can directly manage or hire partners specializing in providing management software and statistics on affiliate marketing activities.

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