Affiliate Marketing: What Are The Benefits For Seller & Affiliates?
1990’s was the era of internet web and big vast sea of information at every person’s disposal. As the new technologies dominated the globe, websites became a new craze among most marketers. This new craze saw the emergence of search engines and almost all marketers were making their websites lucrative with the help of effective content. With all these new developments on the horizon, traditional methods like CPN saw a good and effective competitor “Affiliate Marketing”.
What Is AFFILIATE Marketing
It is a type of marketing that is performance based where a business house rewards its affiliates for every customer visitor brought by the efforts of the affiliate. Affiliate Marketing basically is about relationships between the following three parties:
Advertiser is a company marketing products, services but most important things is that they should be able to pay for the services rendered by other people in promoting the brands of the company.
A publisher can be a person or a company that promotes advertiser’s products or services and gets rewards with a commission. Consumer is the final component but most important on that completes this triangle of affiliated marketing.
Consumer sees the ads and most important is the action that follows.
We can say that affiliate marketing is the one most economical and quick method but certainly not the easy one. In this triangle an affiliate is simply a link between buyer and seller where affiliate gets rewarded for the tasks done.
How It Works?
- Person or company joins affiliate programs and choose the products, services they will sell.
- Seller provides them with a unique code that is used to drive the traffic to the seller’s products. Almost all sellers provide text link banners and creative material.
- Affiliate copy the code provided by the seller or his website.
- Interested customers click these links and gets redirected to the seller’s products page.
On every purchase the affiliate gets rewarded in form of commission. Seller can always track the affiliate performance with the help of unique ID provided to the affiliate. Different sellers can use various terms like:
1. Pay Per Click
2. Pay Per Sale
3. Pay Per Lead
In Pay per Sale, seller pays a percentage of sale price when customer makes a purchase.
In Pay per click, seller pays on the number of customers/visitors that affiliate directs to the seller website irrespective of purchase is made or not.
In Pay per Lead, affiliate gets rewards when customer fill a contact form by providing information.
Benefits of Affiliate Marketing for Affiliates
- Low investment is needed in terms of a website which will direct the traffic to seller’s product.
- Affiliate person or company makes money any time, any hour, any day. There are no physical stores and no employees.one just need to manage the website.
- There are no boundaries of areas or country. One can target entire world.
- Little risk is involved as an affiliate can quit the company affiliate program if he is not satisfied with the rewards.
Benefits of Affiliate Marketing for Sellers
- Seller needs to reward only for the sales that has been successful.
- Affiliate program is economical as there are only operational costs which are low.
- Seller is always in full control as the entire program is designed as per the needs of sellers.
- Most search engines give higher rating to inbound links. Company with good affiliates always has a chance to get high ranks.