| When you shop online, you probably have already | | | | including tracking, affiliate quality assurance, payment, |
| come across many different sites with a lot | | | | communication between publishers and merchants, |
| of online coupon codes. By using those codes, you | | | | account management to facilitate cooperation |
| can get a product or service at a discount. Have you | | | | between publishers and merchants. Affiliate network |
| ever wondered how come those sites can gather so | | | | firm will usually get paid for providing these services. |
| many coupon codes? | | | | This cut is usually a percentage of the amount of |
| Coupon sites are usually based on affiliate marketing | | | | commission paid to publishers. Publishers will not |
| model. Although we will not heavily discuss affiliate | | | | suffer any loss of their income. The service fee to |
| marketing here, a quick summary of affiliate | | | | affiliate network company adds up as an extra cost |
| marketing is: | | | | to a merchant. For instance, if the commission rate |
| A web publisher (a.k.a an affiliate), in this case a | | | | for one merchant promised by affiliate network is |
| coupon site, will promote a product or service of | | | | 15%. That merchant will actually have to pay 18% to |
| amerchant on his/her website, the merchant will pay | | | | affiliate network company and affiliate network |
| a web publisher on each action this web publisher | | | | company will keep 3% before distributing the |
| generates for this merchant. Most of time, a web | | | | remaining 15% to you. |
| publisher will get paid by commission for each sale | | | | There are a lot of benefits of having this kind of |
| of a merchant's product or service. | | | | affiliate marketing network. A publisher will receive |
| You will notice that a coupon site usually lists tons of | | | | one single commission payment from affiliate |
| merchants and people who run a coupon site will earn | | | | network company for all the sales on all different |
| commission for each sale on any of the merchants | | | | merchants being promoted, while a merchant only |
| on a coupon sites. That is the primary revenue model | | | | needs to make a single payment to affiliate network |
| behind a coupon site. Good coupon sites like ( are | | | | company who will pay each publisher separately |
| working hard to acquire quality traffic and drive the | | | | generating sales for this merchant. The back-end |
| right traffic to right merchants with the goal to help | | | | tracking of affiliate network company make this |
| merchants achieve more conversion. | | | | become possible. Without this, you probably can |
| Many merchants usually will provide coupon sites with | | | | image that a publisher might have to receive |
| various discount codes, special deals and promotion in | | | | numerous payments separately from different |
| order to help coupon sites promote their products | | | | merchants, while a merchant has to make numerous |
| and services at a discount. Since most site visitors | | | | payments for each publisher. Plus affiliate network |
| coming to coupon sites are bargain hunter, it is simply | | | | could also serve as a escrow service for both |
| natural that when a merchant provides a coupon site | | | | merchants and publishers. A publisher will not have to |
| with some sort of deals, coupon codes, or | | | | worry about not able to get paid for each valid sale |
| promotions, the conversion (sales) will rise. If a site | | | | generated, a merchant will not have to worry for |
| visitor comes to a merchant page within a coupon | | | | paying for invalid or fraudulent sales. Affiliate network |
| site and cannot find a coupon code, he/she will simply | | | | company has its back end which will take care of |
| leave and keep on bargain hunting. Now you get a | | | | both publishers and merchants. This is separate issue |
| simple idea how a coupon site gets coupon codes | | | | and I would write another article separately on this. |
| from merchants. | | | | Since merchants are the ones who pay money, |
| Most coupon sites are participating affiliate marketing | | | | unfortunately most affiliate network companies are |
| networks. The famous ones include Commission | | | | more on the side of merchants and less on the side |
| Junction, LinkShare, PepperjamNetwork Those | | | | of publishers. |
| affiliate marketing networks usually have tons of | | | | If you choose not to work with an affiliate marketing |
| merchants (almost every merchant or retailer you | | | | network, many merchants now also offer their own |
| can image) and numerous web publishers who want | | | | stand-alone affiliate marketing program, which allows |
| promote those merchants. Merchants usually | | | | a publisher to bypass the affiliate marketing network |
| distribute coupon codes through affiliate network to | | | | and work with merchants directly. Merchants |
| massive publishers. That is why many coupon sites | | | | sometimes give different promotion, coupon codes |
| can have so many coupon codes from different | | | | on their stand-alone program and their program |
| merchants. | | | | hosted with affiliate marketing network separately. |
| Some coupon sites are so popular and they are | | | | The last touch I want to mention is cash back site. |
| capable of driving a lot of sales to a merchant. | | | | The logic is the same. Cash back sites also make |
| Because of this, those large merchants typically | | | | money by earning commissions. But the difference is |
| demand special or exclusive discounts from | | | | that cash back sites will pass a portion of their |
| merchants. That is why some big coupon sites have | | | | earned commission as cash back to users who shop |
| coupon codes which are not available on smaller | | | | through their websites. In this case, both cash back |
| coupon sites. In order to get on the premium spot of | | | | sites and shoppers will get money. As a result, |
| popular coupon sites, many merchants usually offer | | | | shoppers will have more motivation to shop through |
| great discount, accompanied by increased commission | | | | cash back sites, cash back sites will make money. |
| rate, to those coupon sites. | | | | The snowball will just keep on running. |
| I would like to digress a bit and tell you a bit more | | | | I hope this article will give you a brief idea how a |
| about what is affiliate marketing networks. | | | | coupon site is running. |
| The company running affiliate marketing networks | | | | ©2010 Coupon-Lover. |
| serves as a middle person to provide services | | | | |