Affiliate marketing in the world of Ethereum projects

According to polls, more than 80% of online brands and publishers make use of affiliate marketing – it amounts for 5% of global marketing spent. But what is affiliate marketing and what does it have to do with Blockchain?

What is affiliate marketing?

Affiliate marketing is the practice of advertising your products through use of affiliates – distributional partners, that will push and promote your products or company in return for a commission or share.

An example:

You write a blog titled “top 10 office chairs” – linking each headline to the corresponding Amazon-page. By linking you are fulfilling your tasks as an affiliate and will earn a commission share for every purchase made coming through this link.

(You’ll need a special link as an official affiliate partner, though – No need to start tagging everything with links) 

The process is as follows:

The product provider provides the affiliate with marketing content that is to be distributed on-site, in mails or other digital advertising – clicks, purchases and other KPIs need to be measured after all. The publisher/content creator posts the links on his mediums – if the customer makes a click or purchases, the content creator is paid a percentual commission.

This creates a win-win situation: While product providers only pay based on sales performance, keeping their Return on ad Spend relatively high, affiliates can earn income passively after finishing the process of setting up tracking and affiliate links.

But this is also where a problem lies: Tracking.

Affiliate network as distributional middleman

In order to track sales performance, their return on investment and determining the billable amount for commissions, publishers need to install additional tracking cookies to their site, where there might not have been a need before. Other than that, there might be a need to provide a secure login area independently of the shop to provide an area to track sales performance on both ends.

That is a huge entry barrier for merchants since it requires them to dive into more technical topics they didn’t have to before, costing time, money and expertise. That is where affiliate networks come into play.

An affiliate network is a platform focused on connecting publishers and merchants in their efforts to start an affiliate partnership – so both ends are not approaching potential partners without knowing of their interest in a partnership. The problem: Affiliate networks charge a hefty fee of 10% to 25% for what is essentially a passive service – furthermore cutting down the share on each side of the agreement.

Skipping the middleman – working with Ethereum platforms

The biggest advantage of utilizing the blockchain in affiliate endeavours is cutting the need for the middleman.

Blockchain Affiliate Marketing Networks

Utilizing Ethereum’s smart contracts it is possible to create contracts instantaneously upon sales-generation, on each click or when encountering a sales lead – While at the same time governing the agreements of the affiliate contract.

This way sales can be attributed directly, and the commission can be paid out in an instant – fully automatic.


·         Contracts are safe and fulfilment conditions indisputable

·         They can be acted upon within an instant

·         Cut cost for the middleman as well as being more cost/time efficient

·         Lowering the entry barrier for less tech-savvy partners

If you ever wondered about a better solution to work together with marketing partners – Ethereum-based smart contracts might be what you were searching for.

Looking to find marketing partners or clients in the field? Find out more:

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