Affiliate Marketing and Your Business

Affiliate marketing is a relatively new concept, having become popular on the internet just a few years ago, but in essence, it works in much the same way as becoming an agent for a product or service, or using freelance sales representatives to sell a product or service.

Unlike those old-fashioned means of selling, however, affiliate marketing takes place almost entirely on the internet, and people who run affiliate programs use complex software and technology, as well as unique web links and other tools, to track and pay the affiliates that work for them.

Let us look at it in a little more detail though. Let us say, company X has a product or service that they would like to sell more of, via the internet. They are already doing their own internet marketing, but they would like to increase the exposure that their product is getting.

They decide to start an affiliate program, recruiting other online business people, website and blog owners to market their product or service for them, and in return, those marketers receive a commission, or a percentage of the sale amount.

In order to track what they owe their affiliates, they use software and coding on their websites, which allows them to identify where each individual sale comes from, and to pay their affiliates the money that they earn.

Affiliate marketing has been effectively used by creators of digital products, like e-books, software downloads and online videos, but it’s also used by real world companies such as credit card companies, airlines and others to sell real world products. In fact, if you visit most large company’s websites, and search for affiliate programs, you are likely to find one.

When it comes to the benefits of affiliate marketing to business owners, there are actually two main benefits you could get. First, you could monetise your existing site, by selling related products and services, or second, you could create an affiliate program of your own, or a product that you can sell using affiliate marketing platforms.

In the first case, let us assume that you have a travel related business, and that you already have a website that gets a fair amount of traffic. Affiliate marketing is not your primary business, but you would like to make additional revenues off your website.

In this scenario, you could look for affiliate deals that relate to the travel industry. For instance, you could find affiliate deals on airfares, or travel packages, or you could sign up as an Amazon affiliate and create links to their luggage or travel guides. Each time a visitor to your existing website clicked on one of those links from your site, and made a purchase, you would earn a commission, which could range from a few dollars to several hundred or more.

The same principle can be applied to just about any industry or business, or it could be used as a supplementary income for niche content website owners, who make their money through online advertising revenues. There are even companies like Commission Junction that have networks of advertisers, that you can search by product or service, to match your site content as closely as possible.

In the second scenario, where you create a digital product that you sell via your own affiliate program, the concept is simple too. Let us say you are an expert in a particular field. You already have an on or offline business that is related to that product or service, but you would like to make more money. So you write an e-book, or create a software product for sale, and then you use a platform like Clickbank, or create your own affiliate marketing program, and have marketers sign up to sell your product.

In this case, it is like hiring a global team of freelance sales representatives, all of whom are dedicated to selling your product, and who you only pay for results!

In either scenario, the idea is the same, however. Affiliate marketing is a way for business owners to make more money off their websites and online business ventures, without investing too much time, money, and effort.

Of course, there are a few things that you want to bear in mind when you are getting started in affiliate marketing.

If you are going to be selling other people’s products, the most important thing is to research the opportunity. While it is tempting to be taken in by high commissions, you want to remember, first and foremost, to choose reputable companies or websites to promote. Businesses that do not deliver quickly get a reputation online, and you will find it hard to sell their products to an internet savvy public! Even worse, being connected to a less than savoury company via your website can affect your business’s image, and your sales, so do your homework!

Next, you will want to remember to match your affiliate marketing efforts to your existing website. Even if you have a high traffic site, you are not going to make a lot of money selling something that your target demographic is not interested in. For instance, if you have a website that caters to teens, you are unlikely to sell many products or services aimed at senior citizens, are you?

Finally, there is the scenario where you create your own digital products to sell as a supplement to your business. In this scenario, you will want to make sure that you create a quality product, that people will want to buy, and that you offer your affiliates a reasonable commission to sell them. Remember that when you are selling digital products, you can afford to give away fifty, or even seventy percent of the profits in some cases, because there is no additional cost to you once the product is created! If it is easy to sell, and the remuneration is high, you will have thousands of affiliates selling your products for you, and you will still bring in large amounts of money!

Affiliate marketing is one of the greatest innovations that came with the internet age, and it is one that allows business owners to make more money in many different ways. So, whether you sign up to promote other people’s products as an affiliate, or you create your own digital products, or even an affiliate program for your ‘brick and mortar’ business, if you want to earn more from your business, affiliate marketing is definitely worth a second look.