We’ve all encountered affiliate marketing at some point, usually as buyers. For example, when you pay for car care services, you get a discount on car wash as a bonus.
In a nutshell, affiliate marketing is selling through partners and can be done by anyone, from another firm to a billionaire blogger to a regular social media user. This type of promotion can replace a company’s sales staff, but it can also be a steady source of income for a partner. You can see for yourself that affiliate marketing really works, but first you need to figure out what it is and how to use it.
Understanding the concept of affiliate marketing
Affiliate marketing is a sales and marketing concept in which the selling company pays third party companies to bring in new customers. In most cases, a special program applies to partners or affiliates, and the partner receives a commission for every purchase of goods made by the client they refer. The cost of the product is generally the same for both seller and partner, and each partner’s effectiveness is measured by links with tags that track the number of leads that migrate and the number of critical actions completed. As a result, this promotional strategy mostly focuses on online sales.
Affiliate marketing is a concept that allows a company to expand its scope of operation while reducing marketing costs. Many major companies now offer affiliate options. Many businesses use affiliate marketing. Amazon, which has its own affiliate marketing plan, is one of the most illustrative examples. Websites and bloggers receive commissions from purchases made after linking to an Amazon product page.
How and where is affiliate marketing used?
Affiliate marketing is used by both large and medium-sized organizations and startups. This promotional approach is beneficial for the growth of a new product as it allows the brand to reach an audience that has never heard of it, through its affiliate network. Affiliate marketing is also used to scale a company and generate sales:
- YouTube bloggers who create unboxing videos with full descriptions of products and links to the online seller;
- Advertising on message boards. If a potential partner has already established himself as someone who is listened to and trusted, a quick description of the product can help the company attract new customers and the partner can profit from every transaction;
- In banner ads. Banners are displayed on sites or blogs whose content is thematically linked to the product, or on sites visited by the target audience of the product, and each shopping visitor receives a commission;
- Social media bloggers posting links to products advertised in both outdoor and native ad formats;
- When running physical and online promotions with gifts and discount coupons, when purchasing anything from a seller, the buyer automatically receives a discount on the partner’s product.
Some Benefits of Affiliate Marketing
Manual partner selection is possible. Potential partners apply for participation in the affiliate program, and the seller selects those applicants that interest him: those who, in his opinion, will provide access to the most loyal audience to the product and represent the brand better than others.
There is a “warm” audience. Working with partners has the advantage of having an audience that trusts them. As the partner presents the company and its product in a positive way, it will be easier for the brand owner to relate to them.
Low danger. Paying per result, not per click, ensures that this marketing strategy does not drain the advertising budget, but instead pays only for customers who have already made a purchase, with whom they can build long-term relationships and sell products in the future.