If you are new to the term “Affiliate Marketing”, then this blog is for you. We are going to create a series of articles breaking Affiliate Marketing down into bite-sized chunks. In this Affiliate Marketing blog we will start with a break down of who is who in the Affiliate Marketing world so you don’t get confused with marketing jargon. Before we go any further though let us briefly explain why Affiliate Marketing could be a key to unlocking a new revenue stream for your business.
Affiliate Marketing refers to the process of marketing to new prospects or customers using a channel of publishers who promote an advertiser’s products on their website. The action of the customer is tracked by an affiliate network and when a purchase is completed the publisher gets a percentage (previously agreed) of the sale.
If you own a brand or product and want to open yourself up to a new audience, there are several ways to do so. You can spend a lot of money on PPC or paid advertising, but how do you know it is going to work? It may be a very long time until you work out the best way to spend your money and which keywords or phrases generate the biggest return. You could invest heavily in content to improve your rankings in search results or go the more traditional route and spend money offline. You may of course be doing all of this already and be on the look out for something new.
In the digital age, it is so much harder to gain attention than before. We have so many sources of information that it is hard to know which one to pay attention to. The average person receives over 4,000 sales messages a day even as many as 10,000 depending on your activity.
If you don’t have the in-house resources to attract this attention then why not look into Affiliate Marketing? As an advertiser it has a lot of benefits that you should consider. We are not saying this is a “one size fits all” solution and yes there are pitfalls and draw backs if you don’t know what you are doing but let’s dig a little deeper.
Affiliate marketing enables you to select the publishers most relevant to you and your product. You can target specific audiences based on who follows your publishers, reads their blogs, receives their newsletter or subscribes to their promotional material. You can also conduct a campaign based on which stage of the sales funnel you wish to improve/optimise. If you are looking for brand awareness, you can reach thousands of new customers quickly and efficiently. Looking to improve conversions at the bottom of the funnel then maybe a voucher code promotion will help you stand out against your competition. Whatever your marketing goals there is usually an affiliate programme to suit.
Nothing is free as we know but as opposed to spraying money at PPC in search results, Affiliate marketing works in a different way. YOU ONLY PAY WHEN THERE IS A SALE. That means the risk is all on the publisher and not you. There are even companies that will run PPC campaigns for you because they know exactly how much they have to spend to make a sale and earn enough commission to make it viable.
You only pay when you make a sale
So work out how much it costs you to sell a product using your normal channels, then see if you can afford not to do affiliate marketing. You can then talk to either us or one of the big Affiliate Marketing Networks to find out about the next steps. Understand how much you are willing to pay a publisher for a sale, work out any other commissions including that of the Marketing network. Don’t be under any illusions that there are no free services here, networks and publishers take a cut. That is why you have to do the maths first.
If you want to know more then read our next blog discussing the publishers and who they are. You might be surprised to find out what constitutes Affiliate Marketing.