Meaning of Merchant Part II

What is the merchant’s benefit?

In affiliate marketing, the merchant benefits above all from an increase in reach and conversions . You should not underestimate this, because this fact can offer you financial nutritional value. You have to pay the aforementioned commissions to the affiliate, but they are not that high. As a merchant, you don’t have to deduct much of your profit. You can see the various billing options in the graphic above. A commission is often agreed between the merchant and the publisher, which ranges between 10% and 15% of your profit. If you want, you can of course also agree on a fixed amount.

For you as a merchant, however, you can also benefit without conversions. Affiliate marketing makes it possible to significantly increase your reach. This can be achieved, for example, if your advertisements are displayed on different affiliate platforms. For users, the recognition value increases without clicking on the ad. And you only incur costs when he clicks on it.

Affiliate Marketing Networks

Even as a small shop owner, you have the opportunity to position yourself as a merchant in the market. You can participate in the networks without needing a suitable distributor. If a network partner likes your products or services, they can pick them out and advertise them. Of course, he himself expects a corresponding profit from it. Here are four very good networks at a glance. You don’t always have to think about Amazon .

Network Description
Awin (merged with Affilinet) In this network you will find a variety of partner programs. There is sure to be something here that suits you. You will find a large selection at Awin . This ranges from large and well-known brands to niche providers.
SuperClix The SuperClix affiliate network has a special feature. There you will get an automatic activation for all existing partner programs. You only need to register and you can use almost all affiliate programs for yourself. There are currently around 700 programs available there.
DigiStore 24 This network cannot necessarily be described as a large network. DigiStore24 is a platform for digital products. The advantage is that there is an integrated affiliate function here. Ideal for niche sites . However, you should know that here as a merchant you usually have to pay significantly more commission to the publisher. However, this is normal for digital products.
AdCell If you have a smaller shop or are more of a small provider, the AdCell affiliate network is not a bad choice. There are around 1,700 partner programs to choose from.

Important contractual regulations

As a rule, everyone knows in everyday life which contractual arrangements are entered into. Be it repairs to your car or buying a refrigerator from an electronics store. However, the legal drafting of contracts for online trading is often unclear. It is therefore very important for you as a merchant to clearly define these regulations.

Affiliate network expiry

The contractual situation has been clarified quite clearly here. You as a merchant as well as the affiliate log into the network. The affiliate can view the partner programs made available by the merchant at any time. If he likes one or more, he can apply to the merchant. If you accept this application, you will receive a commission from you for advertisements displayed on the affiliate’s website. You have to choose which type of billing is chosen between merchant and affiliate. The billing should best suit you and your needs.

Legal structure for the merchant

You can choose between two variants of the legal structure.

The affiliate network as a service provider

There are some networks in affiliate marketing that are limited to the function of a service provider. Upon registration, the merchant and affiliate concludes a contract with the network. The contractual arrangement obliges the network to establish contact between you as the merchant and the affiliate. In addition, the network must take over the technical process and also prepare correct accounting. The network also has to act as a payment service provider.

As a merchant, you will receive an offer from the affiliate when they apply. According to Besteducationschools, this offer contains an online advertising contract. If you like this, you can accept it. With this you enter into a direct contractual relationship with the affiliate. Both parties are obliged to display the advertisements and, on the other hand, to reward them with the agreed commission. The affiliate can conclude such contracts with several other merchants.

The affiliate network as an intermediary

This is the second variant for a contractual arrangement for you as a merchant. In this case, the affiliate network is built directly into the advertising process. If an affiliate registers with a network, a contract for online advertising is concluded with them. Usually this is a framework agreement that forms the basis for many other subcontracts. This regulates all the important points such as mediation of advertising, commission payments, etc.

As a merchant, you also have to sign a contract with the network. Among other things, it regulates what options there are for advertising your products or services. You have to state what commission you pay and which advertising material you are providing. However, you are not issuing an invitation for an affiliate yourself. Rather, this is done on behalf of the affiliate network.

Merchant 2