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Why Affiliate Marketing is a Great Idea to Grow Your Business

Advantages of affiliate marketing for merchants

All great businesses love affiliate marketing for many reasons. It’s mostly about lead generation and sales. That is why Amazon or BlueHost loves affiliate channels.

What is affiliate marketing?

Affiliate marketing is a commission-based model where an affiliate (publisher) sign up to an offer by an advertiser (retailer) to sell their products or services through multiple publication modes like blog posts, YouTube videos, email newsletters, or social media activities. The affiliate takes attempts to send traffic to the company’s?website. If he/she can able to make a sale, the advertiser pays him/her a commission. From a business perspective, it can be seen as a third party marketing team and paying the team members on successful sales.

Advantages of Affiliate Marketing to Businesses

There are multiple reasons why affiliate marketing is a promising approach for businesses to grow. The most prominent are as follows:

1. Pay Only for Performance and Sale

The best thing about affiliate marketing is that you are not going to pay your affiliate partners unless there is a sale or an assured performance. Although there is the flexibility of rewarding publishers for influencing sales through active promotions, most of the affiliate programs are based on successful sales. Therefore, affiliate marketing is quite cost-effective.

Unlike the traditional pay-per-click (PPC) advertising and lead generation services, in an affiliate marketing contract, you’ll not be charged for clicks or leads sent your way.

Clicks or leads from traditional marketing channels (like PPC) can’t assure a paying customer. However, an affiliate program can do.

An ineffective campaign of your affiliate partner won’t affect your budget. On the other hand, you need to pay even for a poor lead, if it’s a lead generation or PPC program.

2. No or Limited Setup Cost

If you don’t bother about setting an affiliate platform at your level, you are not going to invest anything. You can register with an affiliate network like Commission Junction with zero setup cost. They will also guide you through the setup and provide the tools and resources that you need. All background works will be carried out by the network partner.

You can also have your affiliate programs where you need a few low-cost software to make things right. With minimum efforts and investment, you can have a great affiliate platform to attract potential publishers.

3. Zero Risk

Affiliate marketing is the only marketing effort that has no risk at all. Paying for sales or performance rather than for clicks or leads ensures affiliate marketing is a risk-free form of marketing. There is no other alternative where you can start a marketing campaign without utilizing your marketing budget.

4. Better ROI

Due to the above three reasons, affiliate marketing ensures a better return on investment (ROI) to merchants.

5. Costs Established Upfront

Unlike most of pay-per-click advertising, affiliate marketing facilitate you set your costs upfront. You can set commission rates for your products depending upon the profit margin. You can easily control the cost per conversion (CPC). It’s only one CPC model.

6. Control over Incentives

Affiliate models allow you complete control over the commission, incentives, and other benefits that you are going to offer your publishers. Publishers can’t charge you as they wish.

7. Mostly Autopilot

There are two different types of affiliate models. One, where you need to set up your own affiliate platform and the second, where you can join an affiliate network like Share a Sale or Commission Junctions. While in the first case, you need complete involvement, the second case doesn’t require your active involvement. The affiliate networks will mostly take care of your partnership with publishers.

8. Time Saving on Marketing

Although marketing is an important lifeline of any business, it consumes a lot of time. It’s mostly a lengthy process. However, affiliate marketing helps businesses to be free from marketing activities. Most of the works are done by the affiliate networks and publishers. It saves your valuable time that you can utilize in your business growth.

9. Suitable for Startups

Startups and small companies can take the advantage of affiliate marketing to scale their businesses with minimum investment. Since affiliate marketing offers opportunities to hire unlimited numbers of publishers at no upfront cost, you can try any new product in the market without bothering about the marketing cost.

As a retailer, you can pick who you choose to work with. Affiliates apply to come onboard your affiliate program, providing you with the opportunity to assess their suitability and hand pick those who can be the best ambassadors for your brand and products.

10. Targeted traffic

Since affiliate marketers speedily gain good experience through working with many brands, they better know how to target the proper traffic while advertising for a brand. Most of the traffic through affiliate channels are highly targeted.

11. High Brand Awareness

Affiliate marketing help businesses in better brand awareness. Since your products and services are advertised on different platforms, people using different online channels can know about you. You can encourage more affiliate publishers to create brand awareness for you.

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10 Responses

  1. Rajgopal P says:

    Found just what I was looking for! It’s really an useful post for businesses who are looking for cost effective modes of marketing.

  2. Ishant Goyal says:

    Thanks for a helpful post on affiliate market for businesses. It picked up my interest.

  3. Patrick Pierce says:

    Affiliate marketing is one of the most cheapest mode of marketing, because you are not going to pay before a successful sell or accuring a customer.

  4. Aman Singh says:

    Hi Hema,
    All the 11 reasons that you enumerates to explain the strength of affiliate marketing are powerful. I hope, you’ll also write on the advantages of affiliate marketing to marketers. Thanks.

  5. Neha Malhotra says:

    I was looking for to find answers regarding the advantages of affiliate marketing to businesses. There are very few discourses available on Google. Most of them are based on how affiliating can help a publisher, not a business. Your post is a different that talks about the benefits of affiliate marketing to businesses of any size. I found it helpful. Thanks.

  6. Surendra Das says:

    Love your blog. Especially the way you explain things, such as – why affiliate markewting is adorable. Thanks

  7. Rabikant says:

    Hi Hema, thanks for this helpful post. I’ve a doubt that should small businesses adopt affiliate marketing technique? Will it be beneficial to them?

    • Hema Mehta says:

      Thank you for your query. I would love to say that irrespective of size and category, affiliate marketing is highly helpful to all retail businesses. It has special advantages for small businesses as there is zero risk factor.

  8. Ayesha Khan says:

    Affiliate marketing is immensely helpful to merchants. This form of marketing can assure better sales without investing much on marketing.

  9. Piyush Rajput says:

    Hi, I found this post on affiliate marketing quite informative and helpful. Thanks.

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