What is Affiliate Marketing?
|……..Affiliate marketing is the promotion of a product or service through the use of channels independent of the original product creator or service provider. Promoters and advertisers are usually compensated on a commission-only basis for generating sales.
……..There are many different variations on this model and there is almost always a way to make affiliate marketing work for your business.However, before you jump into the affiliate marketing world, there are some things you should think about. Here are a few things that we think are important:
Cost of a sale
……..Before you start any type marketing, you should know the cost of a product sale for your business. What is the profit margin on your product or service? How much can you afford to pay your affiliates?
……..Obviously, this is one of the most important things to the businesses, blogs and individuals who will be promoting your product or services. If they can get a better deal elsewhere for the same or similar products, they may well just go there.
……..Of course, you want to be making a profit too, so work out your sweet spot and stick to it. You may even decide that you can afford to give away 100% of the profit on the affiliated product because simply the acquisition of a new customer is worth 10x more to you over a longer period of time! Just work out what is the best for you and your business.
Marketing and sales
……..This combines both the skills of marketing and sales into one process. This can be a very powerful technique, but you must make sure that you have professionally made materials to make sure that your business is visually represented to the highest level.
DIY or ‘done for you’ affiliate programs
……..Regardless of whether you are a large company or a small business, there are a few different ways to approach this type of marketing system, but one of the most popular methods is to use affiliate tracking software. This is the DIY approach to marketing; management of this type of system is a major role and you should be aware of this before making any commitment.
……..If you don’t have the resources available and you don’t want to undertake this role yourself, you can always join an affiliate program. This is the perfect way to outsource the management of your own sales team. It is also possible to outsource the creation of marketing materials to a wide range of companies if necessary.
How we can help
……..Here at Hosted Affiliates we provide a specialised service allowing businesses to outsource the management of their affiliates program. We can provide visual marketing materials and sales copy to help drive more and more traffic to your business through your affiliates.
…….. We can also help you manage the process of hiring affiliates for your business so you can appreciate a fully automated system whilst maintaining complete control of your sales network.
……..A company is only as good as its marketing and we aim to help you market excellent products and services to the highest level.
Read the “Build it and they will come” pdf.