The Benefits Of Affiliate Marketing For Merchants
Is your company new to internet commerce? Or are you trying to increase and leverage your online sales to boost your company’s bottom line?
If your business hasn’t embraced the affiliate marketing model you are missing out on a tremendous opportunity to not only increase sales but penetrate and expand into new market segments.
Affiliate marketing is easily one of the most effective methods for significantly increasing the size of your online business in a very short amount of time. And amazingly, its a long-term sustainable model that is extremely cost-effective year in year out.
What Is The Affiliate Marketing Model?
There are three primary players:
- The Merchant
- The Affiliate
- The Prospective Customer
How Does It Work?
Affiliate marketing is a cooperative effort between a merchant (company) and an affiliate (individual) in which the affiliate agrees to promote the merchant’s products or services on their website by linking directly to the merchant’s website. In exchange, the merchant pays a commission to the affiliate for each sale (Pay Per Sale model – PPS). The best part for the merchant is that they only pay the affiliate when a prospective customer makes a purchase. So it’s literally free advertising!
In addition to the PPS model some merchants pay a commission merely for clicks (Pay Per Click model -PPC) or taking a particular action such as completing a form (Pay Per Action – PPA).
Benefits Of Affiliate Marketing For The Merchant
- Affiliate programs are somewhat risk free
- The merchant pays only for results rather than just advertising
- Huge exposure for your brand on a wide spectrum of websites
- An expanding ‘sales force’ that grows and becomes larger each day
- Better search engine placement for your website. The search engines reward you for backlinks and affiliate marketing is one of the easiest and quickest ways to get them
Affiliate marketing is like having your own private army of online sales people who do all the promoting and work for you and only get paid when they sell your products and services. It’s simply the most efficient way to grow your online revenue.