How does affiliate marketing work for E-commerce?
- Make your affiliates to join the affiliate program
- Choose the products to be promoted through online.
- List out the category of products.
- Fix the commission rates for all the category.
- Provide affiliate code or affiliate referral link to the affiliates.
- Each time the sale happens through the affiliate link the affiliate is paid commission based on the commission rate fixed for that category of products.
Performance tracking of affiliates
The performance of the affiliates can be tracked through the affiliate ID provided to the affiliates. You can view the real-time access to all commission provided to the affiliates and the ongoing sales status.
Customized Affiliate Program
It is not always necessary that the affiliate should sell your product, you can customize your affiliate program to pay the affiliates for the different actions performed by the affiliates like pay per click, pay per lead etc.
The two different commission structures that can be implemented in the affiliate program is as follows
- Tier Commission
- Hit commission
Marketing Tools for the Affiliate MLM Program
You can advertise your affiliate program on various platforms.
The various platforms are as follows:
- Email Marketing
- Providing coupon code and displaying the discount
- Social media platforms
Facebook, Twitter, Google Plus, Instagram, etc
- Uploading Video
Each level of recruitment of affiliates is called Tier 1, Tier 2, etc. An affiliate can recruit “n” number of sub-affiliates in Tier 1 and similarly the sub-affiliates in Tier 1 can recruit “n” number of sub-affiliates in another level Tier 2. This chaining process continues to many Tiers.
Suppose the affiliate recruits sub-affiliates and the sale happens through sub-affiliates using unique referral ID provided to them at Tier 1 level. The affiliate will earn a particular percentage of the sale.
Now if the sub-affiliate in Tier 1 recruits other sub-affiliates to Tier 2 level and the sale happens through the sub-affiliate at Tier 2 level through unique referral ID provided to them, still the sub-affiliate at Tier 1 level and the main affiliate also earn the percentage of sale happened at Tier 2 level.
In both the cases, the affiliate will earn the percentage of sale but in Case 2, the sub-affiliate in Tier 1 will earn more percentage than the main affiliate for the sale happened at the Tier 2 level.
You can fix the percentage of commission for the affiliate, only for the sale happened up to a particular Tier level. If the sale happens beyond that particular Tier level you can discard the commission for the affiliate
The affiliates can view the details of their sub-affiliates like username, current commission, previous payout, etc. Unique referral id and a link will be provided to the affiliates and sub-affiliates. If the sub-affiliates uses the unique link of the affiliate to view the product.
The hit to the unique referral link of the affiliate from the unique clicks of the sub-affiliates gets increased. You can pay the affiliates depending upon the number of unique clicks. You can set the number as per your commission plan.
It is not necessary that sale should happen per click. This is called Hit Commission.