Fundamentals of Affiliate Marketing – A Quick Study
Affiliate marketing is a performance-based online marketing technique in which a business rewards (in the form of commission) to the affiliates for each visitor that they bring into the business using their marketing tactics. Thus, affiliates earn commission by promoting others’ products. It is a popular marketing technique to drive sales and generate significant revenue online.
Foundation of Affiliate Marketing
Affiliate marketing is often compared to outsourcing, in which companies hire affiliates at a cost (called a commission) to bring in more customers to the company’s website. Merely bringing visitors does not call for paying any commission to the affiliates until the visitors are converted into customers.
Advantages of Affiliate Marketing
Businesses today are reaping the benefits of affiliate marketing that allow companies to market a product with a meager budget effectively and at a well-contained risk level. It guarantees a high ROI (Return on Investment) and increases the product’s brand awareness. Some of the advantages of affiliate marketing are discussed hereunder.
- Cost-effectiveness: Affiliate marketing is performance-based which means that the company needs to pay commission to the affiliates only when the visitors brought in by them convert into customers. Thus, the organization is saving a lot of the cost that would have been spent on expensive advertisements with no guarantee of desired results.
- Broadening the Audience: The popularity of affiliate marketing is far-reaching, and therefore, affiliates are present in almost every market, be it retail or vintage products; there will always be relevant websites. Therefore, it is highly possible that these affiliates already have an established visitor base. This helps companies to expand their markets well beyond their limits.
- Boost Traffic Rapidly: The affiliates use a unique link created to track traffic that it intends to direct to the company’s website. A certain percentage of the sales made through those links are paid to the affiliates for their services. The more sites that link to the company’s pages, the faster it will convert mere visitors into paid customers. However, it is also true that affiliate links do not directly impact SEO rankings. Still, they will certainly welcome more visitors searching for the products and thus navigating through the webpages.
The most effective affiliate marketing strategy
The most effective affiliate marketing strategy is pay-per-click, in which affiliates are paid for every click on their promotional links.
Boosting Business with Affiliate Marketing
Affiliate marketing has a very low risk associated with it but yields a high return and is considered one of the best marketing tactics. However, to reap the maximum benefits of affiliate marketing, the companies should know how to use the technique tactfully. Here are some tactics to boost up business with affiliate marketing.
- Choose the Right Affiliates: Affiliate marketing allows companies to leverage the power of influence to get more traffic to their site. Therefore, companies can handpick their affiliates who already have an established audience interested in their products. This will help them to gain maximum conversions with minimum effort.
- Build a Robust Affiliate Network: It is wise to build an affiliate network instead of tapping into various others. Recruiting the first few affiliates may be a little tough but expanding the network is easier. It is advised to encourage them to recruit more sub-affiliates by offering them rewards and commissions.
- Optimizing Product Pages for Conversions: Even though affiliate marketers help drive interested customers to the company’s product pages, it is not a very good idea to completely rely on them to bring in sales for the company. Instead, they should also try to optimize their product pages by themselves to boost up conversions. For this, the company can set up customized rules to direct traffic to their specific webpages.
- Dedicated Email Campaign: Email is the most widespread online marketing channel, and therefore leveraging email marketing in the affiliate marketing strategy can help boost the business. For example, if the company has a website, they can add a few Call-to-Actions to help them accomplish that. They can add an attractive ‘Hello’ bar on the top of the homepage so that anyone who visits the website can see it. Any marketing offer attached to the hello bar will be sent to the user’s email in exchange for the name and email address that they provide.
- Promote Products with Confidence: As an affiliate, they should look confident about the products they are promoting, and the best way to do this is to own the products and review them first-hand; promote those products that the company believes in.
- Communication: Communicating with the affiliates usually helps the company track their sales, which is very important for the business.
Making Money with Affiliate Marketing
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Affiliate marketing can help the business win more leads by improving the company’s brand awareness. It is one of the top customer acquisition methods, but it cannot happen overnight. For this, they need to choose the right affiliates and affiliate marketing strategies to boost up conversions.