Affiliate Tracking Software: Improving Attribution & Maximising Profit

Affiliate marketing has undergone a major transformation since its inception, with spending increasing dramatically from £471 million to £627 million.

Measuring industry success mostly relies on data. Thus, strong affiliate tracking software is crucial to help your company grow. This technology offers affiliate marketers all they need to grow their businesses: profitable items and instantaneous understanding of consumer preferences and behaviour. After all, results follow from the meeting of knowledge with action.

Before learning why affiliate software is essential for every solopreneur and affiliate network, let’s start with the basics.

What Is an Affiliate Network?

An affiliate network connects those looking to improve their reach and increase sales with affiliate marketers — partners who use their marketing expertise to promote products and services within various affiliate marketing niches.

An affiliate network acts as a bridge between publishers, influencers, merchants, and businesses from different industries. It streamlines the entire process by managing everything  — from setting up partnership terms and conditions for managing affiliate payments to giving partners simple access tools for the best performance.

Many companies use specialised affiliate programs to link with publishers from affiliated networks. These kinds of initiatives have excellent advantages that help to boost efficiency and profitability: more sales, more brand awareness, more website traffic, better conversion rates, and more email subscribers.

How Are Affiliate Networks and Affiliate Programs Connected?

Affiliate programs effectively allow businesses to expand their client base and boost sales. Businesses that create an efficient affiliate program can reach a bigger audience, raise brand awareness, increase website traffic, and convert visitors via email sign-ups and other targeted actions.

Affiliate programs often require a significant upfront investment to cover marketing and recruitment processes. That’s where affiliate networks come in and help brands reduce operational costs.

For skilled marketers, working with affiliate networks is a cost-effective way to increase visibility and access multiple programs with automated tools and simplified administration.

Now, let’s explore how an affiliate network works and outline each typical participant.

Affiliated networks and programs serve different purposes. Strategic connections that grow over time define long-term success most of all.

Affiliated programs provide a win-win situation for all the participants. Monitoring traffic quality, user activity, visitor behaviour, and conversions can be difficult. To ensure exact attribution, marketers need certain technology. While over 62% of marketers examine conversions using affiliate link trackers, 59% of firms assess performance using click monitoring.

Advertisers can create more leads by engaging their target audience with certain activities online, like review sites or social media accounts.

Here’s an in-depth look at how affiliate programs work:

1. Affiliates use an affiliate network to locate the best offers.
2. Affiliates advertise on their websites, blogs, social media, etc.
3. The audience browses and clicks on ads.
4. Prospects arrive on the advertiser’s website or app, where they can finish a purchase or other intended activity.
5. The affiliated system logs this activity.
6. Affiliate software programs help to track and credit affiliated work.
7. Businesses and advertisers pay networks to provide premium leads through publisher efforts; the network handles affiliate payments.

 

Establishing an affiliate program alone is insufficient to guarantee success. The program’s effectiveness largely depends on competent affiliate program management, where affiliate software comes in.

What Is Affiliate Marketing Software?

Businesses and networks that want to capitalise on the potential of affiliate marketing should consider using affiliate network software. It allows them to quickly measure, manage, and grow campaign results while strengthening relationships with affiliate partners, all from a single comprehensive platform.

Affiliate marketing software is a collection of tools to raise a brand’s potential for growth. Phonexa’s affiliate software improves campaign performance and affiliate program management, allowing networks and companies to do more than ever.

83% of marketers believe tracking affiliate link clicks is one of the most important metrics. Staying on top of this allows specialists to assess the success of their efforts.

Merchants need effective link-and-click monitoring software and a full-featured lead management system to properly attribute sales and compensate successful affiliates. Without these tools, evaluating campaign success and ensuring fair compensation becomes challenging.

Is your business using affiliate tracking? Check this comprehensive guide.

Everything networks and brands need to lead and effectively run their programs is covered by the all-inclusive Phonexa software. Track real-time performance, delve into data analytics, and maintain solid partnerships for long-term growth.

 

Why Do You Need Phonexa’s Affiliate Marketing Software?

Our affiliate software differentiates itself from other systems by offering merchants and affiliates specialised dashboards to monitor activity.

It is proven by cutting-edge products like Lynx for click tracking, LMS Sync for effective lead management, Call Logic for call journey control, HitMetrix for behaviour analytics and conversion rate optimisation, and other top performers in the marketing automation suite.

Let’s analyse the challenges faced by brands and networks and how Phonexa’s affiliate management tools can help address them.

Problem #1: Attracting more affiliates and brands while developing long-term affiliate connections to remain competitive

Goal: Effective affiliate partner tracking and attribution.

Solution: Network owners can grow their businesses and stay competitive by utilising affiliate marketing tools, referral marketing, and programs that strengthen relationships within established affiliate and brand networks.

 

Referral marketing software and affiliate management solutions allow you to investigate how referrals arrive in your business. This procedure encompasses sales, support, and marketing departments, all of which are accountable for the success of affiliate partnerships.

Affiliate networks can accomplish the goal using automated tracking, reporting, and analytics solutions. Phonexa’s all-in-one marketing automation suite helps networks determine the most effective affiliate managers and tactics that produce the best results.

Problem #2: Manual processes and poor source attribution

Goal: Using automation tools to track and analyse the data, attributing web and call leads to sources and campaigns

Solution: Automate affiliate tracking tools to monitor and analyse data and lead sources. Automated affiliate marketing allows networks to identify the most effective routes for lead generation, attribute credit to particular campaigns, and direct subsequent initiatives.

 

Any good affiliate marketing strategy starts with knowledge of the source. With Phonexa’s LMS Sync, you review whole lead data, track accurate attribution for each lead’s source, enhance the buyer experience, and properly nurture quality leads.

Affiliate networks can leverage Lynx, Phonexa’s click-monitoring software, to gather detailed insights on click performance and assess campaign effectiveness.

 

Using coded tracking links, you gather data from all marketing campaigns, determine the most effective channels, and spot new trends. 

Problem #3: Increasing affiliate payouts and supporting marketing optimisation and volume

Goal: Maximise conversion flows while getting and collecting user behaviour data to improve outcomes of marketing campaigns

Solution: Aside from A/B testing online forms, landing pages, and website items, affiliate networks may provide partners with a comprehensive tool for finding friction points, accessing important user behaviour data, and determining what changes would enhance website conversions.

 

Phonexa’s HitMetrix allows affiliate marketers and lead generation specialists to profit from in-depth data analytics while identifying traps in the user journey and making decisions such as clicking, browsing, scrolling, and tapping to conversions.

Problem #4: Boosting lead-to-close rates for buyers

Goal: Connect businesses and marketers with in-market consumer leads, controlling the lifetime value and quality of purchased leads

Solution: Affiliate networks, organisations, and brands generating call leads should use complete affiliate tracking software and a ping post calls feature.

Businesses easily connect with customers with automated incoming call distribution, but this convenience has downsides. This lead acquisition strategy provides few insights and no opportunity to negotiate a higher price if the buyer’s data points are compelling. Still, problems can be solved with the correct instruments.

 

Phonexa’s Call Logic and its Ping Post Calls 2.0 boost the capacity to ping several lead buyers with customer data and knowledge of lead-generating techniques, enabling their affiliated partners to maximise outcomes.

With comprehensive affiliate software and Ping Post Calls 2.0, Phonexa’s real-time bidding and lead acquisition solution, affiliate networks can negotiate the best call statistics and send only high-quality leads to purchasers cheaply. As a result, network owners can boost publisher and buyer satisfaction while considerably improving lead-to-close rates.

 

Take a product tour and discover how Phonexa’s software can help you get qualified leads and maximise your initiatives in affiliate marketing.

While inventive concepts and tried-and-true methods mix to find the best solution for every brand, classic ways like print media should also be considered. Discover the variations between automated affiliate and network marketing by continuing to read.

Affiliate Marketing vs. Network Marketing

Affiliate and network marketing are distinct promotional strategies. Through affiliate tracking and universal and customised web advertising, affiliate marketing involves honing messages and reaching a designated audience. Network marketing, on the other hand, creates leads by direct, person-to-person methods such as door-to-door advertising or customer-to-customer selling.

Let’s take a closer look at how these two models differ.

Characteristics	Affiliate Marketing	Network Marketing
Description	Affiliate marketing is a promotional strategy that businesses of all types can implement.	Network marketing allows salespeople to promote products directly to customers through door-to-door and online interactions.
Scalability	Its marketers use various ad platforms and online media to reach prospects and scale their campaigns, including Facebook, TikTok, Pinterest, and YouTube.	Network marketing enables growth primarily by using the power of smart business connections
Revenue	It enables businesses to utilise their online presence and earn revenue using social media, SEO, affiliate email marketing, and PPC advertising. SEO is the most important source of online traffic for affiliate marketers, accounting for 53% of the total.	Network marketing makes money by selling items or services through independent sales representatives or distributors.
Tracking	Affiliate software and specific affiliate tracking solutions help capture page visits, behaviour data, clicks, conversion data, and other information. Publishers, like affiliate networks, must understand how their campaigns function and which channels and sources require extra investments.	Companies use specific MLM affiliate software and platforms to improve their sales and distribution processes.They offer lead creation, customer management, and inventory tracking capabilities. Furthermore, multi-level marketing software offers specialised e-commerce services like payment processing and tax compliance.
Attribution	Tracking customer journeys is essential for affiliate marketing campaigns to be effective. With the help of the best affiliate software, brands and networks receive useful insights on where the customer journey interacts with their affiliate partners. From amateur bloggers to brand managers, everyone gains from the affiliate tracking software’s accurate attribution, easier operations, and detailed records.	MMLM refers to direct and online sales. Companies can use attribution software to analyse their marketing campaigns’ effectiveness better and create data visualisations. The latter provides a detailed look at which activities performed best historically based on user-defined key performance indicators.
Strategy	Affiliate marketing is a strategic way of advertising products and services via an interconnected network of marketers. With each successful reference and promotion, the advantages spread farther down the chain, resulting in a cycle of mutual benefit for all participants.	The pyramid scheme is the primary strategy used in network marketing. By using the “power of many,” this concept allows firms to maximise earnings.

Let’s use another analogy to clarify misunderstandings between dropshipping and affiliate marketing management.

Dropshipping vs. Affiliate Marketing

Affiliate marketing enables corporations to leverage their influence to generate income for partners and other businesses. Dropshipping enables firms to sell products under their brand without holding inventory, as profits come directly from customer purchases.

Dropshippers make money straight from the sales made by clients, whereas affiliate marketers receive commission-based payments.

There is no single answer to which model is better for marketers and business owners. Every choice includes pros and cons that should be carefully weighed. We have compiled a comparison table to help you make an informed choice.

	Pros	Cons
Affiliate marketing	You can start with a minimum investment.Good source of passive income; You can select from various  niches Allows flexibility and convenience when you deal with multiple campaigns. You get the benefits of automation and optimisation using affiliate software.	The rewards and commissions could be meager at the start You need time, effort, and additional investment to scale. Affiliate links are frequently removed. Limitations of individual traffic sources, as well as strong competition.
Dropshipping	High margins and profit rates Ability to build your brand from scratch Instant payments	High margins and profit rates You can create your brand from scratch. Instant payments

Successful affiliate marketing takes more than building a network of contacts. It is about developing mutually beneficial relationships. That’s why affiliate networks and companies must invest time nurturing strong affiliate partnerships, maintaining open communication, and using high-quality affiliate tracking software that directly impacts their bottom lines.

Here are some pointers for forming effective business collaborations and making the most of affiliate tracking software.

How To Get Affiliates & Build Strong Affiliate Partnerships

Utilise Referral Marketing and Start a Program

Launching a referral program is an effective way to bring in new leads. You encourage existing partners to refer individuals within their network who could benefit from your affiliate network, which results in satisfied affiliate partners who become brand promoters.

This scheme enables affiliate networks to reward partners for their commitment and enthusiasm. It increases your brand’s visibility and motivates companies and publications using a rewards system that guarantees their recurring behaviour.

Every affiliate network owner must know how recommendations reach their ecosystem if they are to maximise referral marketing. Implementing affiliate tracking software is the best approach to tracking and managing your program and identifying new revenue opportunities.

Here are the top reasons to use referral marketing software:

• Reason #1: Referral campaigns can be easily accessible using referral software. Affiliate marketing software can simplify it by automating affiliate tracking.
• Reason #2: Referral programs are simple to launch, manage, measure, and scale when supported by affiliate tracking software.
• Reason #3: According to a recent ThinkImpact study, B2B referrals can significantly impact customer retention, reaching up to 37%. Affiliate management software allows you to efficiently nurture and reward loyal partners for high-quality referral connections.

Create Affiliate Marketing Landing Pages

If you aim to maximise the reach of your affiliate program, you must first create an effective landing page for affiliate marketing.

Here’s an example of a dedicated affiliate marketing landing page from HubSpot:

Source: HubSpot

A separate website or landing page for affiliates, advertisers, and agencies provides them everything they need, from clearly defined commissions and expectations to information about the system’s operation.

However, a well-designed landing page alone is not enough to guarantee success. Affiliate networks require SEO research, good copywriting, high-quality website creation, and accurate tracking via affiliate tracking software to achieve maximum profitability with the least effort.

Know Your Competitors

Understand who you’re up against, especially the bigger players. Analyse their strategies so you can outperform them even with fewer resources.

How To Become a Successful Affiliate Marketer

It’s no secret that affiliate marketing campaigns are getting more complex, making it harder to reach customers and creating extra work for businesses.

That’s where automation comes to the rescue. Automated affiliate marketing software keeps you ahead in a constantly changing marketplace and helps you to stay competitive. Here’s what marketers worldwide have to say:

Source: Statista

Automation of many corporate operations helps to free up important resources. Affiliate marketing software allows marketers and affiliate owners to shift their focus to strategic, value-driven tasks while eliminating repetitive processes prone to error.

We all know progress makes perfect. Automated affiliate marketing software is the solution to automate your affiliate tracking and payments, optimise your partners’ performance, assure precise attribution, scale your affiliate marketing business, and focus on strategic duties.

Build your plan now, or book a demo to discover how Phonexa can help your affiliate business become more effective.

Frequently Asked Questions

What is EPC in affiliate marketing?

Affiliate marketers must know and understand earnings per click (EPC). EPC is a key metric highlighting how much your partners can get via clicks sent through your program, which is easily tracked by affiliate tracking software. It’s especially useful for affiliates that generate a lot of traffic and need to know which goods are the most efficient to promote.

Is affiliate marketing a pyramid scheme?

Definitely, no. Unlike illegal pyramid schemes, affiliate marketing is a sustainable way to earn money online. Networks and advertisers use this marketing strategy to compensate affiliates for successful referrals, downloads, purchases, and other target activities they generate, all while backing up the results with tracking data, analytics, and reports from their affiliate marketing software.

What is automation in affiliate marketing?

Affiliate marketing automation optimises processes, protects sales, and gives actionable analytics to help affiliate networks and organisations make informed decisions. Furthermore, affiliate marketing software improves productivity and provides security against fraudulent activity.