Web Analytics on Affiliate Marketing

Affiliate Marketing is a relatively new industry in Online Marketing, but its primary concept is ostensibly old: a company (Merchant) rewards a person (Affiliate) for every referred customer he brings in to the company. You put that basic mantra in Internet and you easily have Affiliate Marketing by the flesh.

But inside Affiliate Marketing are layers within layers of decision-making. Merchants constantly want to get ahead of each other; getting the top affiliates in the industry and luring them with the best affiliate deals. On the other hand, affiliates keep on pushing the competitive boundaries to remain within the loop of the affiliate arena.

This is where the relevance of Web Analytics comes in.

As a merchant, you want to offer your affiliates the best campaigns. Put a Labor Day Sale for example. Coming up with this idea is pretty simple, as most retailers would do the same. Your affiliates will welcome this, open arms. It is the aftermath of your Labor Day Sale that is more tedious. How much did you gain? How much of what you gained came from what affiliate? How much of your traffic did not successfully convert? Why?

Simply put, Web Analytics answers these questions. This will determine not only the success rate of your campaign, but your current and future relationships with your affiliates, which of them you would like to terminate and which of them you would like to focus on the next campaign.