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Article by Carsten Cumbrowski, May 30th, 2006, Updated June 7th, 2006, August 20th & 26th, 2006
Table of Contents
- Page 1 - History, CPM, PPC/CPC, Contextual, SEM, Pay-Per-Call
- 1. History of Affiliate Marketing
- 2. The Pay-Per-Impression / Cost-Per-Mil* (CPM) Model (*Mil = 1000)
- 3. The The Pay-Per-Click (PPC) / Cost-Per-Click (CPC) Model
- 4. Contextual Advertising
- 5. Search Engine Marketing (SEM)
- 6. The Pay-Per-Call
- Page 2 - CPA, CPS, Affiliate Networks, In-House Programs
- 7. The Pay-Per-Lead / Cost-Per-Action (CPA), Cost-Per-Lead (CPL) Model
- 8. The Pay-Per-Sale / Cost-Per-Sale (CPS) Model
- 9. CPA or CPS?
- 10. Affiliate Networks
- 11. In-House Affiliate Program Solutions and Software
- Page 3 - Outsourced (OPM), Conclusion, Resources, Abbreviations
- 12. Outsourcing - Outsourced (Affiliate) Program Management (OPM/APM)
- 13. Conclusion
- 14. Affiliate Marketing Resources
- 15. Important Industry Specific Abbreviations
12. Outsourcing - Outsourced (Affiliate) Program Management (OPM/APM)
When you have your program up and running, the first and most important step is done. Now begins the complicated part.
The Wild, Wild West of affiliate marketing - when quick and easy money was made and having an affiliate program running on autopilot, generating a huge increase in sales by affiliates who sought out programs and did everything themselves without the need of support and guidance - is over. Business on the Internet has matured and affiliate marketing has, as well.
An affiliate program requires attention. To recruit and retain high-quality affiliates requires ongoing, thoughtful effort. Supporting existing affiliates is vital. A clear set of rules - an affiliate agreement - must be worked out and enforced.
Your program is destined to fail if you don't spend the required resources and time on it.
Allocate resources to your affiliate program and don't do it "on the side." If you don't have the resources in-house, consider outsourcing of your program management (OPM). There are a number of quality service companies available that specialize in this, such as the OPM services listed here.
Thousands of online merchants successfully operate affiliate programs today, proving that affiliate marketing is the most cost-effective and efficient way to promote your products and services on the Internet.
Affiliate marketing guarantees a fast ROI (return on investment) and for some online merchants and services the sales generated through the affiliate channels make up a considerable percentage of total online revenue.
14. Affiliate Marketing Resources
Before you get started, check my Affiliate Marketing Beginners Checklist
that will help you to realize what you will get yourself into with affiliate marketing and determine if you are ready for it.
You can find a lot of related Resources at my Affiliate Marketing Resources site. The Resources for Newbies are probably of particular interest to you.
Networks, in-house solutions and software, news sources, forums, blogs, OPM's… I recommend subscribing to my aggregated affiliate marketing RSS Feed, which you can find at my affiliate marketing resources and also here.
If you want to find out more about SEO and SEM, take a look at my Search Engine Marketing Resources and also at my Search Engine Optimization Resources.
You can find an aggregated SEO/SEM News Feed in RSS format at my Search Engine Optimization Resource Page. You should subscribe to it!
15. Important Industry Specific Abbreviations
- = Advertisement, Text, Banner, Flash, Video, anything
- = Application Service Provider
- = Cost per Action
- = Cost per Click
- = Cost per Lead
- = Cost per (Mil) Impression (1000 Impressions)
- = Cost per Sale
- = Conversion Rate
- = Cascading Style Sheets
- = Click through rate/Click-Through Ratio
- = Direct Hit
- = Dynamic Rich Media (type of Ad, technology)
- = Digital Rights Management
- = Earnings per Click / Earnings per 100 Clicks
- = Frequently Asked Questions
- = Free-For-All Link List
- = Instant Messaging
- = Made For AdSense (Site)
- = Outsourced (Affiliate) Program Management
- = Pay For Inclusion
- = Pay For Performance
- = Pay per Action
- = Pay per Click
- = Pay Per Click Search Engine
- = Pay Per Impression
- = Pay Per Lead
- = Pay Per Sale
- = Page View
- = Return on Investment
- = Run Of Network
- = Run Of Site (Display Advertising)
- = Small Business
- = Search Engine
- = Search Engine Marketing
- = Search Engine Optimization
- = Search Engine Positioning
- = Search Engine Result Page
- = common (optional) URL Parameter Affiliates can use for their own tracking purposes
- = Social Media Optimization
- = Server Side Include
- = Unique Selling Proposition
- = Unique Visitor
Abbreviations of Websites you will come across
- = ABestWeb - Affiliate Marketing Forums
- = Affiliate Summit - Conference
- = Commission Junction - Affiliate Network
- = Commission Junction University- Conference
- = Digital Point - Forums
- = Linkshare - Affiliate Network
- = My Affiliate Program - In-House Program Solution
- = Performics - Affiliate Netwok
- = ShareASale - Affiliate Network
- = Search Engine Journal - News Blog
- = Search Engine Land - News Blog
- = Search Engine Strategies - Conference
- = Search Engine Watch - News and Resources
- = Search Marketing Expo - Conference
- = Share Results - Affiliate Network
- = Thread Watch - Internet Marketing News Discussions
- = Webmaster World Forums
©2006 Carsten Cumbrowski
Replication of this Article, in full or in parts, without written permission by Carsten Cumbrowski is prohibited.
The original "free to re-print" version of this Article is available for download at several Re-Print Article directories.