Affiliate business marketing is an excellent option for companies looking for new ways to advertise. There is minimal risk associated with this form of marketing and the potential for significant returns. It is a great way to increase your sales and often grows your target audience.
What is Affiliate Marketing?
Affiliate marketing is a type of advertising that allows you to outsource your advertising work. You hire someone else, an affiliate marketer, to promote your brand and encourage new customers to your site. Affiliate marketers are paid on commission, so each time someone uses their affiliate link to reach your site and make a purchase, they receive a small percentage of this. Their focus is to not only drive visitors to your page but to convert these visitors into customers who will buy your products or services.
How Affiliate Marketing Works:
Each affiliate is assigned a tracking URL, that leads to your business site, often to a specific page. When people click on it, they will be taken to your website, but the visitors’ activity on the site will be tracked to the specific affiliate link they clicked on. This allows your company to determine whether a sale came from an affiliate or not. This also allows the company to know exactly how much profit is being made from each affiliate, and where they
The affiliate will advertise your company to its audience. There are many different ways for them to do this, and often, businesses will limit the ways that your network members can market. But ultimately they encourage viewers to click on their affiliate link, which will take them to your website.
When the visitor clicks on the affiliate link, they will be given access to your products or services on sale. When they purchase something, you pay the affiliate for driving that sale. This way, you can also see how much money each affiliate generates for your company, and they are only paid for the successful sales they set up.
Benefits to Affiliate Marketing
There are several positive aspects of this type of marketing, making it an attractive option for many companies.
- Payments are only based on results. Your company does not waste money on advertising that does not generate income for your business.
- As a result of this, it is an incredibly cost-effective method of advertising.
- Affiliates may be better at driving sales than other types of marketers. Their payment is dependent on them driving sales, and not just on producing content.
- You know exactly how much money you are paying to generate each new customer. This allows you to create a business plan that maximizes your profits.
- It’s generally unlikely that you will lose money. You are only paying affiliates if they have generated income for your business, and you would have a system in place that provides your member with a fraction of your profit. The only likely way you might lose money is if you are working with dishonest affiliates, in which case you would take steps to cease working with them.
Drawbacks to Affiliate Marketing
There are also some negatives to using affiliate marketing. Predominantly these stem from the fact that you have less control about your advertising message and your target audience, compared to traditional advertising. Although affiliate marketing can do wonders for your brand, it is always important to be aware of the risks, no matter how small they might be.
- You have limited control over the message that the affiliate is producing. You don’t want the affiliate to be lying about your brand, or present your services or products in a poor light.
- Often, the quality of visitors to your site via an affiliate link will not be as good as visitors who go directly to your website, meaning that they are often less likely to purchase anything. This can then waste time and resources without having a positive
- Affiliates may bring in bad traffic from disreputable sources, making your business look bad. You cannot control who your advertising is going to reach, and the result may be a new audience that brings bad publicity for your company.