Although affiliate marketing become popular in last decades, there has been old use of this marketing strategy by businesses. In practical terms, affiliate marketing is one of the most cost – effective marketing strategies ever used. At this is because payment is only made after a purchase. So basically, it’s like the product selling itself.
It is a unique way of outsourcing your business and brand marketing to others. As long as you keep producing quality products and services, done rightly, your business should not have scarcity of customers. Here’s how affiliate marketing works in four simple steps.
Developing A Tracking URL
Just like many companies require staff to wear an office tag, online tracking URL operates in the same way. With it, you’re able to know the exact affiliate marketer who brought in customers and how many.
This is not done like most conventional work interviews. Affiliates earn a commission from how effectively they can bring paying customers to your business. For this reason, there’s really no limit to the number of affliates you can outsource your marketing to.
Leads Or Paying Customers Are Found
With the URL links, these affiliate’s get to work, independently to get customers to engage customers to buy your business products and services. Obviously not all leads will result in a purchase but it guarantees your business is getting the attention it rightly deserves.
Commission is Paid
Before getting affiliates to sign up for the program, you should have clearly stated what the commission on each product or service would be. This way the affiliate knows exactly what they’ll be getting, when they bring a paying customer your way. Upon completion of payment, the agreed commission is paid to the affiliate.
The benefits of using affiliates are numerous and can grow a business exponentially depending on the extent of reach. Unless your product and service is not a physical item, proper shipping logistic should be put in place to ensure delivery to customer’s. With all of these in place, the entire online market is open for you to exploit. If you have never used affiliates for your business, this is the best time to take advantage of this opportunity.
The drawbacks from using Affiliates, albeit few, is worthy of mention. Since affiliates are given the freedom to market your products and service the way they see fit, you have no control of the message being put out there. Since not all leads result in a purchase, you can expect some of these to be bad quality leads. If unchecked for a longer period of time, it could start to affect your brand negatively. Its your job to ensure you monitor and manage your business brand regularly and uses analytics to know where and from whom bad leads are coming in.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs to build & grow their business with revolutionary ew theories and systems allowing them to design the business and personal lifestyle of their dreams.