Web3 is an exciting world that empowers the development and decentralization of many sectors through the concept of dApps, which are nothing but decentralized applications that function based on smart contracts.
Many sectors have witnessed the changes brought in by Web3. We saw how Finance and Banking could be improved, logistics and Supply Chain use cases, Gaming and Virtual Economy advancements, and how Governance and Voting Systems can be enhanced. Another sector that is going to break free from its traditional methodologies is Affiliate Marketing.
Web3 is slowly and steadily making its way to revolutionize how affiliate marketing works. This blog is all about understanding the changes offered by Web3, which can make Affiliate marketing more efficient and fruitful. First, let us begin by building an understanding of Affiliate Marketing.
What is Affiliate Marketing?
Suppose you sell a product. To sell the product, you will need some marketing, but what if someone else does marketing for you, and you pay them according to how many leads they bring in? It’s a great model. You can outsource your marketing to different affiliates simultaneously, and based on the leads they generate, they get a share.
These Affiliate programs have four major parameters:-
- Affiliate: An individual or entity, such as a blogger, influencer, or website owner, joins an affiliate program offered by a merchant or advertiser
- Promotion: The affiliate promotes the merchant’s products or services through various marketing channels, such as their website, blog, social media platforms, email newsletters, or video content
- Tracking and Attribution: The affiliate’s unique affiliate ID or tracking link is used to track referrals and conversions generated through their promotional activities. The tracking system records the referral and attributes it to the affiliate.
- Commission: The affiliate earns a commission for each successful referral or sale they generate. The commission structure varies based on the affiliate program and can be a percentage of the sale value or a fixed amount.
Issues with the Current Model?
Well, the current Affiliate marketing system is too dependent on cookies. Cookies are small codes placed on users’ devices when clicking on an affiliate link. These cookies are then used to track the user’s activities, and if the user does anything valuable, like purchasing a product, the affiliate earns a commission.
The major drawback is the use of cookies to track the whole activity. The ad blockers that users use to protect their privacy nowadays block the cookies, making it hard for the affiliate to earn a commission even when a lead was generated through his services. Another issue with traceability is its accuracy, as users may manipulate the cookies if they do not want to be tracked. This also results in a loss for affiliates.
What does the Web3 Affiliate program offer?
In the previous sections of the blog, we learned about what affiliate marketing is and what issues it is dealing with currently. Now, it is important to understand how Web3 can improve the existing affiliate marketing system.
- Decentralized Tracking and Attribution: By leveraging smart contracts and decentralized ledger technology, creating an immutable record of affiliate interactions is possible. This ensures more accurate attribution of referrals, eliminates fraudulent activity, and builds trust among affiliates and advertisers.
- Token-based Incentives: Web3 has a system of tokens that can be used as a mode of payment to the affiliates for their services and can also be used as a mode of incentive. These tokens can also serve as governance tokens or access to exclusive benefits, creating a stronger incentive for affiliates to promote products or services.
- Decentralized Affiliate Networks: The decentralized networks will reduce costs and empower affiliates with more control over their earnings than the centralized networks. This also facilitates the interaction of advertisers and affiliates without any intermediator
- Social Proof and Reputation Systems: Reputation systems are common in Web3 applications. This adds a layer of security. A higher rating helps get social proof and creates trust; thus, affiliates with a high reputation score can attract more advertisers and gain greater visibility in the Web3 ecosystem.
Conclusion
As Web3 becomes more and more mainstream, we will witness a huge spike in the number of applications Web3 has. We will witness unique protocols being developed, working on some mind-blowing principles, and this ecosystem will revolve around Smart Contracts.
When we look at this exciting future, we also need to look at the threats we are facing today, Web3 community is continuously facing huge losses due to hacks and scams, but now the protocols are becoming more and more inclined towards a smart contract audit which helps identify security related issues and fix them, the auditing service has now become crucial, and almost every protocol undergoes this process.
Looking for a way to contribute to the Web3 community? The best way is to spread awareness about the security the project needs. Even better is that you could get paid for doing it if you join QuillAudits affiliate programme. The signup process is easy, and it gives you a lucrative commission on leads. Grab this unique opportunity now.
Affiliate programs are effective for marketing purposes in business; thus, their advancement and development are continuous. The affiliate programs on the Web3 platform will provide advanced and effective features. Soon we will witness the mainstreaming of dApps offering these platforms, and with our affiliate program, we are among the few who are leaping into the future early.
