An affiliate marketing campaign is where other website owners place ads for your business on their websites. These website owners are known as affiliates. Its important to understand how this type of marketing works. Generally, the affiliates are given a code for your banner ad to place on their website and given free reign to promote their own website as they see fit. While promoting their website they are also attracting attention to your website because of the banner ad that directs visitors to your site.
One of the best features of affiliate marketing is the affiliate is only compensated when they produce the desired result. This means the business owner is not obligated to pay the affiliate unless the affiliate is successful. That success may be generating traffic to the website, resulting in a sale or even resulting in the user registering on your website or filling out a survey.
The compensation for affiliates is usually based on cost per click, cost per lead or cost per sale. In regards to the cost per click and the cost per lead, the affiliate is usually paid a flat rate every time a user either clicks through the banner ad on the website or performs a specific action after clicking through the ad. A cost per sale may result in the affiliate being compensated either a flat fee or a percentage of the sale depending on the agreement between the business owner and the affiliate.
The most beneficial use of affiliate marketing is to partner with affiliates who have a proven track record of promoting the businesses which they support. Most affiliate programs are open to anyone with a website. However, it is much more worthwhile to find affiliates who are able to generate a large amount of traffic to their own website. This is very important because the more visitors the affiliate receives each month, the more likely your website will receive visitors who click on the affiliate’s banner ad.
Here are some key benefits to starting an affiliate marketing campaign:
Automated advertising campaign
Affiliate tracking software is the perfect marketing tool because you literally implement an automated advertising campaign that will promote your product or service 24 hours a day, 7 days a week.
Affiliate registrations and sales reports are processed automatically. Visitors and sales are tracked automatically.
You don’t pay unless you make money
The biggest benefit to an affiliate marketing campaign is that you don’t pay anything until you get the results you want. Your affiliate will market your site and you won’t have to pay for the advertising until you make a sale or receive the desired effect.
If you want to run a test campaign to gain the pulse of your customer base. You can place your campaign in various places on the internet and measure the results. If a certain campaign isn’t working you can then tweak it for free or for very little, instead of having to pay the full price for a advertising campaign, only to find it isn’t working.
Viral marketing strategy
Viral marketing is very powerful. If you start a two-tier program, your affiliates earn money on the affiliates that sign up under them. This will encourage them to recruit more affiliates, which creates a viral marketing strategy with unlimited growth potential.
Better search engine placement
Link popularity plays a big role in the ranking of your site on the major search engines. The more sites that direct traffic to our domain, the higher your position will be. There is no better way to get hundreds of sites to link to yours than by starting your own affiliate program.
Tips on how to start a successful affiliate marketing campaign:
Don’t get fancy
In successful affiliate marketing, initial groundwork needs to be done to achieve long term success. Learning how it all works is your first step. Start by doing as much research as you can on affiliate marketing and then start out slow and simple until you find what works and you have a better understanding of the process.
Promote what you believe in
Its a waste of time, energy and money promoting products or services that you don’t believe are great, and worst, aren’t relevant to your business or audiences. It is a better idea to choose products that you have experience with yourself, or ones you could see benefiting yourself or your business.
Understand the rewards
Even though the level of commission that is offered will usually be what attracts you to a particular program, it’s just as important to keep in mind the likelihood of that product converting on your page.
For example, if product A offers $100 but has a 1% chance of converting and product B offers $25 but has a 5% chance of converting, then product B is the logical choice.
Content is king
The more visitors you have to your site, the more chances you have of making an affiliate referral to the merchant’s product or service. If your site carries a lot of constantly updated, interesting and up to date content, this will have a positive effect on the amount of traffic flowing to your site.
Reviewing the performance of the ads you’re hosting on your site is an important part of being successful in your campaign. You should review the performance of your affiliate programs every month, and then look at the ads that are performing well and those that aren’t. Then make adjustments because its possible that the ads could be better placed, depending on the audience that tend to visit certain pages on your site.
Affiliate marketing is one of the best online earning methods and with hard work, you can start to see a return with very little investment.