As the internet continues to revolutionize how businesses work, more and more ideas are continually sprouting on how to better utilize the internet to create money. One of the major methods of making money today is through internet marketing and one form of it is called affiliate marketing. What is affiliate marketing and how does it improve the money making potential of businesses and individuals?
What is Affiliate Marketing?
Affiliate marketing is a technique used by businesses to improve the promotion of their products and services online. It works by allowing publishers, website owners, writers and bloggers to post their products on their sites in return for compensation. Affiliates would create ways to promote a business’ product or service by producing creative content, posting links and such to attract customers. It is an easy way for businesses to promote their products without shelling out hundreds of dollars on other forms of paid advertisement.
An example to this is the practice of consignment. It is a technique used by merchants to sell their products quickly. They deliver items to other businesses and have them sell it in return for a fixed or flat rate commission. This is the same principle if what makes this type of marketing efficient, especially with the help of modern communication.
As the question “what is affiliate marketing” in now answered, the next thing to understand is how does this type of marketing work and how do businesses earn money through this type of online marketing?
How does it work?
Affiliate marketing works when Merchant websites (businesses) contracts affiliates to promote their services by driving traffic to their home website. Affiliate websites would normally strategically place links on their website that will bring their viewers to the main website of the business they are promoting once clicked. Payments are arranged beforehand between the client and affiliates, but normally commissions are given whenever products or services are sold.
Other affiliates create special techniques in order to attract customers. Bloggers and creative writers compose blogs, reviews or any form written content that advertises the product in hope to generate traffic.
Benefits of Affiliate Marketing
Many businesses are continually finding and developing ways to utilize the internet to their advantage and the use of affiliate marketing has been one of the most effective methods. However, how does one benefit from affiliate marketing? These are some of its well-known benefits.
- Increased Sales and Traffic – The main benefit of using affiliate marketing is having the change to create huge volume of traffic driven into a merchant’s website. Affiliates funnel people from their own websites towards the main business there are promoting. This incredibly increases the amount of traffic for the merchant’s website thus increasing the chance for sales.
- Low cost promotion – compared to other forms of advertisement and promotion schemes, affiliate marketing is cheaper in all aspects. However, though it is cheap, its effect in increasing business standings online is immense.
- Possible partnership and collaborations – Another benefit of relying on affiliates to promote and advertise one’s brand is having potential sources of new ideas.
- Increase in exposure – it is the affiliate’s job to increase the “visibility” of their merchant website online. That is why businesses that tend to hire multiple affiliates will surely reap an exponential increase in online exposure and visibility, especially in search engines. Becoming visible in most search engine results page, which is very important for the success of any online business.
Methods used in Affiliate Marketing Strategies
There are many ways affiliate marketers advertise affiliate brands, however most use traditional methods to do so. These are the most popular methods affiliate marketers use to promote and advertise business brands.
- PPC (Pay-per-click) – It is the most famous affiliate marketing technique affiliates use to market their affiliate brands. It works by placing links of the merchant’s brands on the affiliate’s website. Every time a visitor clicks on that link, the merchant pays the affiliate, hence the term “pay-per-click.” Currently, the biggest provider of PPC management is Google Adwords. There are other variants of the PPC which affiliates use to drive traffic back to their merchant website.
- PPL (pay-per-lead) – It is where the affiliate is paid whenever a potential customer willingly provides personal information such as email address or telephone numbers. PPL is to provide leads for possible email marketing techniques.
- PPS (pay-per-sale) – PPS is where the affiliate is given a fixed commission for every product or service sold through them.
Search Engine Optimization
SEO is the next most popular method of advertising affiliate brands. It utilizes content creation techniques that aim to increase affiliate brand’s visibility in search engine results. It works by using keywords, which are words commonly typed in by customers when searching information through search engines. These keywords are then strategically inserted in a blog post, article or any form of written content.
Use of Email
This type of affiliate marketing technique is called email marketing and aims to keep in constant touch with clients and potential customers. This is done by sending periodic newsletters, coupons, reminders and other advertisements to constantly promote an affiliate’s brand. Normally, affiliate websites places online forms on their websites for customers to request newsletters and such.
Use of Social Media
Social media users can also become affiliates by promoting business brands in their Social media page. Many merchant businesses today include options to allow affiliates to automatically “post” advertisement and promotions in websites such as Facebook and Twitter. As social media is one of the most dynamic and interactive places on the internet, businesses are constantly developing schemes to make use of this hub of online interaction to their advantage.
In summary
The use of affiliate marketing strategies has improved countless number of online businesses and has changed the lives of the affiliates for the better. In learning what is affiliate marketing, people can take advantage of this great and innovative way to benefiting from the internet. As businesses continue their shift to online marketing, people who provide affiliate services will continue to be a vital part of every marketing strategy.