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Affiliate Marketing – A Cost Effective Way to Advertise Your Business

Affiliate Marketing: Why it is One of the Most Cost-Effective Ways to Advertise Your Business

If you are reading this blog, you probably have heard of affiliate programs. But, just in case you do not know what they are, affiliate programs are forms of internet advertising that reward affiliates for driving traffic to an advertiser’s website or for other types of transactions such as generating leads.

An “affiliate” in this instance, is a person who directly promotes a specific product or service which is owned by someone else. Affiliates are not paid staff of the product’s company, nor are they considered an employee of any type.

How an affiliate marketing system works is that the advertiser provides pre-designed ads promoting their products or services to the affiliate. Then the affiliate places one, or more, of the ads on their own website. This in turn sends traffic from the affiliate’s website back to the advertiser’s site, lead capture form or other specified landing zone. Affiliates may place ads on their regular websites, blogs and even in eNewsletters. There are a variety of other ways to promote online that many ambitious affiliates make use of as well.

Payment to affiliates can be made for placing the ads on their sites. But usually, affiliates are paid only if clicks from the ads on their website result in an actual sale, lead generation or other desired transaction set by the advertiser. The ads are specially coded so that the system can easily track which affiliate’s link generated the click. The coding is important because advertisers with affiliate marketing programs usually have many affiliates who promote for them.

Simply put, affiliate marketing is about paying commissions to people who help you make sales.

The following list points out several reasons why internet marketers (merchants and affiliates) absolutely love affiliate marketing, not only as a form of advertising, but also as a means of income:

1. Affiliate Marketing is Low Cost

Many people are hesitant to begin a home based business because of the capital required. In affiliate marketing, you don’t have to spend large amounts of money to start earning.

2. Inventories are not Necessary

Product management, storage and shipping can be a hassle. An inventory is not asked to be maintained of affiliates. The merchant does the product fulfillment required.

3. Unlimited Income Through Leverage

When you have a paid job, your monthly income mainly relies on whether you go to work or not. With affiliate marketing, your affiliates alone could lead enough traffic to your site without you having to lift a finger, aside from providing them with your ads. Though not every web marketer earns a limitless income, it is a fact that all the necessary matters for the advertiser and internet marketer to be successful are available. It is simply a matter of each affiliate’s personal motivation and time spent promoting.

4. Worldwide Exposure

With affiliate marketing, you are dealing with a global marketplace. All you have to do is choose a product and prepare the necessary tools for your affiliates to lead traffic from just about anywhere in the world, to your website.

5. Low Risk

The main reason for internet marketers’ enthusiasm with affiliate marketing is its low risk factor in terms of advertising expense. For that reason, it is especially appealing to those with a small advertising budget.

6. Open 24 Hours, 7 Days a Week

With affiliate marketing, your business works every single second of every single day while targeting a worldwide market! What could be better than that?

Keep in mind, that no matter how effective your affiliates are, no sales will be made unless you work towards business success — first and throughout — the sales process. Gather all the right tools for yourself and your affiliates, and get all systems and software in place prior to soliciting for affiliates to come help you market. Be sure to provide them with a unique, in-demand product or service.

Additionally, have a professional and functional website ready for when the prospects that your affiliates send to you land there. Provide your affiliates with a variety of high quality ads to select from. And finally, be sure to follow through professionally and swiftly with your end of the transaction, whether it is sending out free reports, shipping products or contacting the prospect directly with more information.

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