We’ve already discussed the ins and outs of affiliate marketing and talked about all the things that are needed to know about this way of marketing, and still, there are more than enough things to be said on this big topic. Affiliate marketing is very similar to finding a usual marketing option for you, your products and services, and the thing that is usually different is that you are under no obligation to pay to your affiliates a constant amount, but rather only their share of directed customer.
Imagine you have a store which is filled with delicious cookies, but you simply do not know how to sell them, and because of that, you are struggling with the lack of customers. Now imagine that you have a friend who is quite social and he has a very nicely done blog where he constantly suggests interesting things to his readers. Now you make a deal – he becomes your affiliate and he directs customers towards your web store where they can buy cookies, and in return, he gets a percentage. This is almost a perfect, well balanced relationship that works for both you and your friend. Your business will skyrocket because of the increase in customers visiting your store, and your friend is getting a percentage of all that but using his influence and skills to find and direct customers for you. A match made in heaven!
Naturally, all this is extremely simplified, and there are many possibilities how this partnership can happen, but in essence, this is simply it. All the referrals are automatically tracked, so you will exactly know who is responsible for which purchase and who should be rewarded with a percentage. There are some terms that need to be explained so that you can truly understand how this process works.
- Click-through rate – this is the percentage of people who will actually click the link that leads to you and your website, and this is actually a number of people that is interested in your products or services, but remember, not all of these people will necessarily buy something, but still, it is a good statistic to know how good is the site that is redirecting people to your site.
- Conversion rate – this is actually the percentage of people who are actually going to buy something, and conversion rate is a percentage of those that clicked on your website. So, if your affiliate has 10.000 visitors a day and his click-through rate is 2%, that means that 200 people will click your link and go to your site, but your conversion rate is 5%, meaning that out of those 200 people, only 10 will actually buy something.
Finding the perfect candidate for your affiliate sites can be quite hard, and there are numerous networks that work together in order to spread as wide as possible and quickly as possible, and efficiently spread your products, and it is up to you to find the best possible affiliate partner to work with.
If you are wondering whether your job is in the group that can easily use affiliate marketing to increase revenue, just ask yourself this questions: is your major competitor using it? If they are, then the answer is very simple and you should do it yourself. If on the other hand, your competitors aren’t using it, don’t be dissuaded, it may also mean that they are not aware of all the benefits.
Unlike more traditional approaches, where you simply create an ad and hope that someone will notice it, this is a much better approach since it is cheaper, and you only have to give a predefined commission when a purchase is made. In simple terms, you do not have to pay unless you get what you want, and it may even sound too good to be true, but there is a actually a delicate science behind this marketing approach.
If you are careful enough, and if you find the right affiliate program, then you will certainly be satisfied with the outcome, and you are not bound by any payments, especially if they are not producing results you are looking for.
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