Affiliate agencies in simple are the middle man between advertisers (app developers/product or service owners) and affiliates.
Advertisers: are people who create products
Affiliates: are people who promote vendors products in exchange for a commission
Advantage for Advertisers Choosing an Affiliate Agency:
The advantage that an advertiser has in choosing an affiliate agency to run their offers is because they have a database of a large number of direct publishers/affiliates to promote the offer.
Advantage for Affiliates Choosing an Affiliate Agency:
The same holds true for affiliates; they go to affiliate agencies because they can find a lot of offers vs one or two from a single advertiser.
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More Specifically
There are several payout models used by affiliate agencies including the two primary models: CPI/CPL/CPS/CPA.
- (CPI) Cost-Per-Install
- (CPL) Cost-Per-Lead
- (CPS) Cost-Per-Sale
- (CPA) Cost-Per-Action
The larger the affiliate agency, the more publishers they work with. Cooperation with each publisher requires certain time and labor costs (for signing a contract, integration, processing payments), and some advertisers cannot afford such costs. In this case they hire an intermediary, i.e. affiliate agency, that provides the following services:
- Placing the advertiser’s affiliate program on their website;
- Organization of tracking system;
- Keeping statistics;
- Technical support for publishers and advertisers;
- Consulting publishers;
- Control over compliance with the rules by publishers, banning rule breakers;
- Making payments to publishers.
Affiliate agencies really are a one stop shop for all of your affiliate marketing needs. They will get you up close to many advertisers that may not be possible on your own! Happy earning 🙂