Affiliate Marketing Strategy
Affiliate marketing is referred to as performance based marketing that may a business may employ to reward affiliate’s effort. It is a very rewarding process of earning commission by campaigning/ promoting a company’s/organization or individual products. It is a type of marketing that enhances revenue generation from website registrations and visitors (hits) and online sales.
The process is in a simple form
- Find/get any product you like
- Promote and encourage others to get the products
- Earn profit for each sale you make
The affiliate industry is made up of four principal players and they are:
- The merchant (the brand or retailer)
- The Network
- The publisher (also referred to as an affiliate)
- The customer
The affiliate marketing industry has really grown. The movement is not a new trend on the internet; it is now a global accepted form of online marketing practice. It is also seen as a process whereby a website is employed to drive visitors (online traffic) to another website. The numbers of websites, that visitors are being driven to, does not have a limit.
The methods/strategies employed in affiliate marketing conform to that of internet marketing to some extent because affiliates/publishers are more engaged with the use of advertising methods. Some of the methods include:
- Organicsearch engine optimization (SEO)
- Content marketing
- Paidsearch engine marketing (PPC – Pay Per Click)
- E-mail marketing
- Display advertising
Affiliate marketing and internet marketing are alike in the sense that they both involve the use of internet, but Affiliate marketing often uses less orthodox techniques, which include publishing product review and many more. There are many individual that do confuse Affiliate marketing with referral marketing. It is so because; they both make use of third parties to get the sales of their products.
However, there is a difference that makes them distinct and unique among each other. The only difference is that referral marketing depends on trust and personal relationships to make sales while affiliate marketing relies solely on financial motivations to make sales.
How sales are made:
After a company has fully registered an affiliate, they are given products of a particular brand to promote. Meanwhile, products that an affiliate is fully knowledgeable about would be the best to promote. From there, an affiliate employs different strategies to promote/advertise the products. It could be hosting a particular link, product information, banners, ad and publishing of reviews on certain website or blog that is fully engaged. From the engaging website which is mostly social media, consumers would be directed to the sales page of the product
Advantages of an affiliate marketing strategy
Networking and Partnership/Collaboration
This is one of the major advantages of affiliate marketing. A relationship is established and it is kind of a symbiotic type of relationship in which both parties benefit from each other – both Merchant and affiliate gain from the affiliate partnership formed.
This kind of partnership helps merchants to get more product views/impressions and customers while the affiliates earn more for creating leads and sales.
Reduced advertising/marketing budgets
Affiliated marketing helps to reduce and make effective use of budgets slated for adverts and marketing. Affiliate marketing is just like marketing where one will want to make sure the money spent on advertising and getting new customers is worth it. The rates and fees to pay for the advert is lessened and the risk of having a bad return on investment (ROI) is reduced
Easy and Good tracking
This is one of the best advantages of affiliate marketing. One can easily identify which affiliates strategy is working and which is not. It allows one to see one’s performance and it helps to know which area one should spend more funds on to create good ROI and leads
With affiliate marketing, there is high guarantee of brands and products getting better and lasting impressions around the world which in return will help build a good brand name and image. This also helps to gain more exposure, especially in the case of a particular brand targeting a demographic area.
Other advantages include:
- Fastest means of brand exposure
- It saves time
- Long and lasting ROI
- It is risk free strategy of advertising
- Maintenance and establishment of a good customer relationship