You are bound to come across the term “affiliate marketing” in the world of ecommerce which refers to symbiotic relationships in between website owners/publishers and merchants whereby an affiliate is rewarded for every time a potential customer gets converted into a client.
A portion of the profit generated from a transaction gets credited to the account of the affiliate in the form of a commission every time goods or service are purchased by a customer.
The compensation amount might either be for every purchaser (pay-per-sale), registration (pay-per-lead) or visit (pay-per-click). This performance based marketing model is rapidly evolving as a low-risk and highly-beneficial means of promoting your products on the online platform.
Now Affiliate Marketing might look blank to you, but here are some of the benefits of affiliate marketing
- Performance Oriented
Affiliates are paid a commission once the requisite clients are converted which in turn provides them with greater initiative to strive harder. As a result, you get exactly what you pay for by doing away with efforts which drive redundant traffic which would not translate into fruitful results.
- Third Party Validation
You can further strengthen your brand reputation by partnering with renowned websites and bloggers who come with their own share of online followers, and wants to act as affiliates. These partners can solidify consumer confidence by functioning as your brand ambassador. Research studies have revealed that consumers bestow larger amount of trust on the option of third parties compared to content published directly on the selling portal.
A stellar trust factor grows as consumers visit the websites frequently for product recommendations.
- Rapidly Increasing Traffic
The recruitment of affiliates can add the requisite inertia for faster scaling of website traffic. You are bound to benefit from greater opportunities of converting potential users into end customers coupled with more sites which get linked with your webpage.
There is also an incremental value which search engines will levy on your website with more and more sites being linked with the selling platform. Your existing SEO effort is bound to be complemented by this dynamic approach which also brings wholesome improvements to your search engine rankings.
- Broader Coverage
All the product category and market have already been benefitted by the presence of affiliates which are growing in number with every passing second. Whether your end goal is making your presence felt in the market of handcrafted vintage toys or the retail industry, you will definitely come across relevant websites for aligning with.
Most of these affiliates already come with an established user base which can be expanded into virgin markets empowered by the strategic partnership.
You can either saturate your existing market or dive into newer areas coupled with the renewed bandwidth thus making your online presence felt big time.
- Seamless Tracking
Just like other forms of internet marketing strategies such as website creation and email marketing, affiliate marketing can also be tracked easily. It becomes easy to gauge views of your website and click-through rates once the affiliate web page is viewed by a customer.
This serves as a crucial part of building an operative affiliate marketing strategy since it allows you to have a clear idea of whether your affiliates are actually putting in the hard labour or not.
It can also provide you with information regarding the performance of your website in various affiliate platforms having different marketing tools like link placement or banner ad. You can thus channelize your investments in the right direction by effective monitoring of the final yield of these ads.
- Responsiveness To Market Changes
Affiliates are usually more responsive to changes in industry such as SEO compared to agency and in-house teams coupled with the requisite skills for implementing the same. They can also identify any lacuna in your PPC strategy pretty quickly and indicate at long tail searches which can prove to be highly profitable.
- Easy To Setup
Capital serves as the foremost requisite whenever we think of starting any online or offline business. Affiliate marketing however can be done without any prior investment apart from a computer, strong internet connectivity and a software for writing web content.
It also does not require any special skills such as a diploma or license and can be entered into by anyone with a desire of earning some money or for sellers who want to sell their products by affiliates. However, system setup is required at merchant end to tracking.
- Risk Diversification
Online advertising can prove to be pretty risky with hefty upfront cost levy for running the campaigns. This risk gets reduced through affiliate marketing since the responsibility of product and business promotion is shared by affiliates.
- Cost Effectiveness
Affiliates are experts in search engine marketing which can bring along wholesome savings in terms of PPC and SEO fees. The commission amount is also fixed in advance to help in sticking to your core budget. The affiliate fees are paid only on the actual conversion of customers which prevents silly wastage of capital on placements which will not ring in adequate returns. Recruitment of affiliates also serves as an effective way of branching out into a new market without having to incur the overhead cost of coming up with an entire marketing campaign or spending money on conducting tests in unproven markets.
- Targeted Advertisements
Ads are sometimes created by the affiliates for being placed in websites. These ads are much more targeted given the extensive knowledge of the affiliate agents about the market sentiments. Facebook Ads and Google Adwords are two of the most common ad networks which can provide a solid boost to your business growth.
This effective investment vehicle holds the potential of taking your business to towering heights which becomes tasking given the traditional bandwidth of a small business. Although considerable energy, time and learning acumen might be felt necessary in the beginning, the end goal will surely be worth the squeeze especially if you maintain the level of consistency and try to infiltrate a unique niche which is able to spark user interest.