Key terminology to know before reading:
- Advertiser: The owner of the product/service that wants to move online
- Publisher: The online enabler who will help with the product’s online visibility
Before we dive in, it is important to clarify what affiliate means in simplified, everyday language. For those who are already aware, feel free to skip the first part and go straight to the second.
Affiliate refers to doing online marketing through representation. Whether it’s enlisting a salesman, supplier rep, brand ambassador, product reviewer or any individual who can help you advertise and sell, they all fall into the ‘affiliate’ criteria.
These agents earn commission through the product or service owner following a purchase made from their ad, which makes being an advertiser accessible for anyone with a social media account.
The benefits of being an Advertiser:
- Instant promotion of your product
- Maximising sales channels
- Easier cost control – only have to pay when your product sells through affiliate
The benefits of being a Publisher:
- Commission is set by the seller
- No requirement to store stock or product
- A chance to build income from what you may already be doing i.e. writing product reviews
- Steady source of income. If your website is without advertising banners, you are able to replace the ad space
- Potentially higher income than Google Adsense
The Affiliate system would not be possible without an Affiliate Provider, which provides the platform for Affiliate Marketing. The provider ensures that all operations are transparent by acting as the middleman by assigning a tracking code to see which publisher sold which product, and how much commission they are entitled to.
3 Affiliated Providers You Should Know in Thailand
Lazada Affiliate: As a household name in ecommerce, Lazada also has an Affiliate platform. This means that Lazada simultaneously is the Advertiser and the Affiliate Provider.
Key Feature: Lazada is the biggest online marketplace in Thailand, drawing in over 30,000,000 sessions per month. This provides brands with high visibility, and gives publishers a higher chance to earn commission through sales.
Interspace Thailand: The company began operating Access Trade in Japan in 1999. With over 6,000 clients and 340,000 websites, it was the largest affiliate in Japan. In 2012, the company expanded internationally to China and Indonesia and launched in Thailand the year after.
With over 300 employees at Interspace and the know how of the Affiliate market in Thailand, the company’s goal is to represent CPA (cost per action) Affiliate, and is poised to become the leading platform in the region.
aCommerce Affiliate: The latest Affiliate Provider to join the party. Having launched in Q3 2016, aCommerce Affiliate is run by Southeast Asian ecommerce solutions provider aCommerce. The company provides end to end services from website design, online marketing, channel management, fulfillment and after sales service for brands that want to sell online. The decision to launch aCommerce Affiliate provides the company’s clients with more online channels to promote and sell their products.
Key Feature: High quality Advertiser network and an experienced team with know-how in ecommerce.
These are the top Affiliate Providers you should know about in Thailand. It’s important to remember that each provider has different features and hence, different benefits that may be tailored to suit some businesses but not others. Beyond the list above, there are also other effective affiliate programs that may be suitable to your website.
For example, Thailand based freelance portal Fastwork.co also has an affiliate program. Fastwork doesn’t offer commission on a purchase, as it is a services website, so advertisers would make money on finding jobs for freelancers.
The website will pay advertisers 150 baht if they bring first time users, which will be transferred as website credits. The advertiser can then request to take out the credits as cash for use.
Hotel booking website Agoda also runs their own affiliate program through its affiliate partnership contract. As an advertiser, you can run any sort of website or blog, and post ads on Agoda properties. Obviously, the more visibility your website has the better, and an advertiser can earn a series of steady income if one visitor books a luxurious hotel or multiple days vacation from your website.
Affiliate Marketing shares similarities to the ‘chicken and egg’ story, what came before? If there were a limited amount of Advertisers, Publishers wouldn’t know who to promote. On the flipside, if there were a limited amount of Publishers, Advertisers wouldn’t necessarily put emphasis on Affiliate, since there is no one to help with product promotion. Therefore, the process of Affiliate requires simultaneous growth from both platforms, or one would have to sacrifice in order for Affiliate Marketing to grow in Thailand.