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What is Concentrated Marketing? Definition of Concentrated Marketing, Concentrated Marketing Meaning and Concept

The marketing affiliate is a kind of online marketing whose goal is focused on achieving results. The websites, called affiliates, advertise advertisers and obtain a commission when the user enters their website and performs the action previously agreed upon.


Clicking on a link, downloading a form, making a purchase and making a subscription are some of the actions that can be agreed between affiliates and advertisers.


This type of marketing emerged in 1996 through Jeff Bezos, founder of Amazon, who devised a way to be able to link the web pages of other sellers and for them to obtain a commission from each book sold on their portal.


Advantages of affiliate marketing


Among the advantages of affiliate marketing are:

  • It is beneficial to the advertiser and the affiliate. The first pays if results are achieved and the second charges if they are produced. The latter focuses on driving traffic to the actions that you have agreed to with the advertiser.
  • You do not need to invest in customer service, or support customers.
  • The risk is non-existent since the company is allowed to grow in a potential way without investment losses.
  • If people are satisfied with the recommended products, it can increase affiliate confidence.

Disadvantages


However, there are also some disadvantages:

  • The affiliates must develop an intense promotion work, as if it were a product of the company.
  • Clients are for advertisers, not affiliates. A lasting or stable relationship is not created.
  • The results are in the medium and long term.

Commission on affiliate marketing


Different types of commission are established in affiliate marketing:


  1. Cost per sale (CPV) or cost per acquisition (CPA): A sale has previously been established as the action to be achieved. In this case, a commission is established based on the number of sales that come from the affiliate banner.
  2. Cost per lead (CPL): The achievement of potential customers is the objective of this action. Direct sales are not sought, but contacts through a newsletter, for example.
  3. Cost per thousand impressions (CPM): The commission is charged for every thousand readers who see the ad.
  4. Cost per click (CPC): The commission that the affiliate will receive will depend on the visits, on the clicks that the ad receives.