If we take note in marketing terminology, affiliate marketing has its own secret language and it’s not easy to find out in urban dictionary for the newbie to understand those terms. So to make it easy for starters it’s necessary for them to turn the pages in brief and get the basic idea about it when they talk to other people regarding it.
The Term you need to know – Affiliate Marketing
Affiliate marketing is the process of selling offers that we don’t own. We drive traffic to an offer, if people complete the conversion process, we get commission.
– Charles Ngo
The abbreviation you must know when you refer affiliate marketing is CPA Cost per Action/Cost per Acquisition or CPS that means Cost per Sale.
Affiliate marketing works on a cycle that consists of few contacts in this business:
- The Advertiser
- The Affiliate Network
- The Affiliate Marketer
- The Traffic Source
- The Customer
There are probably many theories to affiliate marketing and running up for your business in the particular industry but it depends which strategy works for you. So let’s focus on the steps which we have to take into consideration while choosing the vertical and which one is right for you?
There are two main verticals in affiliate marketing: Adult and Mainstream
And each of them has sub-verticals and those are basically categories. When you say vertical you are referring to broad area that you work in and try to focus on that particular category and try to promote offers as you get deeper knowledge about verticals. For example: Insurance, Health, application install, travel, fashion etc.
So after choosing a vertical you can dive deeper into sub vertical that you wish to work in and it is termed as niche of a subset of your vertical. Example: The vertical is insurance but niche is conducting research for men in auto insurance under 30 who drive modified vehicles. So when you promote vertical you are addressing the potential market of millions in case of thousands in case of niche markets. To choose wisely few things should be taken into consideration.
How to choose a vertical depends on the 4 factors:
- Personal Interest
- Number of offers available
- Profit Potential
- Competitive Landscape
Its only can be executed when you make the goal in your business strategy that you will bump into your business and your profits. By deciding and following some of the marketing affiliate’s initiatives you can start your campaign on the right foot and take the first step of the ladder to get the success in long-term.