Exploit the power of the huge numbers of Internet marketers
Affiliate marketing (AM) is where others get paid for making a referral that leads to a sale of your product or service. It’s like a referral fee for a word of mouth referral or recommendation. Affiliate marketing offers the opportunity for others to make referrals that help you get business and earn a commission for the referrer. This method works best where the product needs little support or education prior to making a purchase.
Companies need to present an appealing and attractive offer, with good products or services. They also need to have a good website which is optimised for mobile devices. Affiliate marketers will bring people to your door but only a good offer will persuade people to purchase. If affiliate marketers do not believe in your product or service, they are not going to put that heart, soul, time and financial resources into promoting your offer.
In addition to boosting sales, affiliates tend to create a lot of links to your site which helps with page ranking.
The advantage to product and service suppliers is that they have the opportunity to tap into the creativity and imagination of hundreds or even thousands of marketers. These marketers can promote their products and services in may ways and on different channels and platforms. Reaching audiences in many countries if desired. Affiliate marketing is a very powerful way for companies to reach far and wide globally and at speed.
AM can be used for lead generation such as collecting phone numbers and email addresses for prospective customers (this is called LEADGEN) and companies pay affiliate marketers a cost per action (CPA) for each email collected. Alternatively, affiliate marketers can be paid a $commission on the sale of a product or service.
The other advantage is that marketing can be switched on and off almost instantaneously - so if stock inventory runs low or the number of sales leads to be followed up becomes large, the marketing can be quickly de-activated whilst demand is dealt with. Then simply re-activated when demand becomes high again.