Do you think Affiliate Marketing Program is an outdated version of online marketing? If yes, then it's time to change your opinion.
Though online marketing has expanded beyond our expectations, an affiliate marketing program is still an option for a wide majority of companies to market their products. As far as I am concerned, if utilized properly, Affiliate Marketing is really an opportunity for the marketers.
Before going deeply into how to do affiliate marketing, let’s begin with the basics.
In simple terms, Affiliate Marketing is a marketing channel in which there will be an affiliate who acts as the link between the company and consumer. It is basically a method of generating revenue online by recommending a company’s product, service or site to customers.
Yes! It is the method of making money by selling products of other companies through your website.
As per Pat Flynn’s Smart Passive Income:
“Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make.”
Using Affiliate Marketing programs, any product can be promoted, provided you identify the right affiliate marketer within the industry.
Now, I think you might have got an idea on what an Affiliate Marketing program is!
Here in this blog, I would like to share the benefits and importance of utilizing Affiliate Marketing programs.
How Affiliate Marketing program benefit your company
There are a large number of companies offering Affiliate Marketing services. In India, the situation is not different. We can come across a number of affiliate sites and Affiliate Marketing companies.
Evidently, affiliate advertising is always niche specific. Hence, we have different Affiliate Marketing programs concentrating on different industries. For example, we have online shopping affiliate programs, matrimonial affiliate programs, tours and travels affiliate programs, job affiliate programs, etc.
You may look into some of the more known affiliate marketing programs in India:
Let’s now look into the benefits of partnering with Affiliate Marketing programs.
Your company and your products will get a wide open market to help you generate higher sales and better income.
As we know, it is easy to convert a customer if he is familiar with a particular product or brand. Since affiliate sites have more traffic volume, your brand will get a wide exposure in terms of reach.
Affiliate sites are cost effective. The costs involved are fixed for the services you require and does not involve any additional payment during its course. Hence, it is the most budget-friendly form of marketing.
Apart from reaching the target audience, you will get new customers from different regions and countries. This will enable you to create a wider range to market your products.You don’t have to waste your time in search of new customers and concentrate on growing your business.
Affiliate Marketing is more transparent in the sense that you can track your sales and return on investment (ROI) clearly. You can have access to the database with exact statistics of your sales at no extra cost.
Clients will have easy access to the products without running to a store, making it the most convenient form of marketing today.
Most affiliates use all, if not majority, of the online marketing tools and hence the merchant, will have everything under one shelter
If you are a low budget company, then this is the best marketing strategy to reach the target audience at lower risk.
The content published by trusted affiliate sites will be relevant and its goes a long way in helping the identity of the brand.
Challenges in Affiliate Marketing Program
On the other side of the coin, there are some limitations too. Some of the challenges faced in affiliate marketing is as follows:
Since there is no direct contact with the customers, companies might not be able to maintain a relationship with customers. Customer relationship plays an important role in generating brand loyalty.
Selection of your affiliate marketer should be done cautiously. There can be some malicious sites which do Affiliate Marketing. Partnering with such sites can damage your company’s reputation. It can also cause unwanted loss to your company.
Sometimes, it takes more time to reach the targeted audience which directly affects the time taken to generate better ROIs.
Affiliate Marketing can generate traffic to the sites, but might not necessarily potential customers.
Since Affiliate Marketing sites link-up with different companies in the same industry, competition will be more and it will be a tedious task for small companies to get noticed.
You should ensure the content quality of your brand in the Affiliate Marketing sites by using software tools. If you don’t have a proper brand control, then there is a chance that the affiliate publishes poor quality content, which in turn can damage your reputation.
Companies should adjust affiliate commissions, select right network, and reverse the commissions on those who are pushing through fraudulent orders, in order to cut cost.
Companies should use tracking devices to assess the performance of their site. The challenge here is the high cost involved with using the technology.
To put it in a nutshell, it is clear that the positives of entering into an Affiliate Marketing Program outweigh the negatives. Hence, it will always be considered as one of the best marketing channels.