Affiliate marketing is a form of marketing whereby, when you refer someone to a company’s product/services and when the referred person purchases the product or services on your recommendation, you get a commission. It is a concept of revenue sharing.
In other words, you promote the link(s) of the company XYZ through your website/mobile/social media contacts/emails etc. This drives traffic towards the company XYZ by your effort. Whenever there is any purchased done through this “diverted traffic”, you earn certain commission from the company XYZ for the efforts you have put in.
Just as any other marketing methods, affiliate marketing (A M) has certain advantages over other forms of marketing. Few are given below:
- A M is cost-effective – The company XYZ pays only when their product/services are sold or clicked. One does not have to place an advertisement which has no proven value. Not much overhead costs. More effective use of marketing budget. Wastage of money is curtailed.
- Pay for conversions only – The company XYZ has to pay only when it gets conversions. Simply put, no conversion/purchase no pay. This reduces the unwanted costs on part of the company. It gets more targeted or useful traffic.
- Market exposure – Company XYZ gets market exposure. It helps to build an image and brand. Creating more awareness of the product/services that are offered.
- A M for a wide range of products and services – Affiliate marketing can be used for almost all the products and services available in the market today. From shoes to clothes to mobiles to computers to hospitals to hotels to airline ticket selling. It creates a brand image and gives information about company’s new product launch.
- Affiliate Marketers are sales promoters – Affiliate marketer promotes the company’s product/services virtually like word of mouth. This has a deep impact on the prospective purchaser. This, in turn, drives the sales without much increase in marketing efforts.