Affiliate Marketing is an online marketing practice where business is shared between online merchants and salespeople. Affiliate marketing is a process whereby one website is used to drive online traffic to other websites. The following takes a look at the benefits of affiliate marketing for those who are interested in online marketing.
What is Affiliate Marketing
Affiliate marketing brings in revenue generated from online sales, website hits and website registrations. Merchants (affiliate merchants) and salesmen (affiliates) work together in their advertising methods. Affiliate marketing is hosting of particular links, banners, or product information on a certain website or blog. You then get paid a fee or percentage of a sale whenever online traffic clicks through on these links and makes a purchase. Thus, affiliate marketing is the selling of products or services offered by others and thus getting paid for each sale.
Benefits of Affiliate Marketing
- Affiliate marketing is the most cost effective direct marketing option. Other direct marketing schemes such as bill-boards, multi-media and pay-per click advertising may be expensive.
- All you need is a website to refer potential clients to.
- Affiliate marketing has a better return on investment (ROI), as you only pay once sales have been made.
- This form of marketing increases traffic to your website.
- Search engine page ranks can be increased as affiliate marketing rewards strategic positioning of links to your website.
- Affiliate marketing schemes can be tracked and analysed. Thus, one can see the success of their marketing on websites.
- It is one of the fastest ways to expose small companies, as you can advertise on various websites.
- It is also one of the fastest ways to start a home-based company.
- There are no limitations on the amount of income one can earn with affiliate marketing.
- You do not have to design, develop or manufacture any products, as affiliate merchants handle this process for you.
- It benefits merchants in such a way that they have a broader market to sell their products or services.
- Merchants receive instant and long-lasting results from affiliate marketing.
- Merchants are able to save time as they do not have to search for potential customers. Ensure to place your adverts on websites that relate to your service or product.
- Banner adverts (affiliate marketing) are not distracting for visitors on the website.
- There are no limitations as to how many banner adverts you place on websites. However see if the website owner has advert space available for you.
- Affiliate programmes enable you to collect relevant data on individual affiliates or the entire programme.
- Affiliate marketing is somewhat a risk free method of advertising your product or service. However, there are fixed costs involved.
- There is no financial risk in signing up for an affiliate programme.
- Affiliate marketing gives merchants the opportunity in maintaining and establishing client relationships.
Merchants who are considering adding an affiliate marketing strategy to their online sales feed should research the different technological solutions available to them. By providing useful information on your service or product, it builds trust and if your website’s traffic trust you, then they’ll trust your recommendations as well.