Affiliate marketing provides a great way for businesses to drive traffic, and increase sales. All sales are performance-based, which means that the business owner only pays when a sale is made. This is a good selling point for online businesses, with a limited budget, looking to attract customers.
There are basically 3 parties involved in affiliate marketing:
Any business that provides a product or service can use affiliate marketing to increase traffic and sales. The business in commonly known as the Advertiser.
Individuals who provide the sales are known as the Publishers. Publishers promote the Advertisers products or services, in exchange for a commission.
The Consumer completes the circle, when he/she engages with the Publisher and takes action, to click a link, fill in a form, or make a purchase.
There are many different ways to track affiliate sales, with off the shelf software that tracks sales and pays the commissions. There are also affiliate marketing companies that provide this service for a fee.
The 3 most popular affiliate marketing companies are:
For Merchants (Advertisers) it is easy to set up an account and promote your product and service to the Publishers who use the service. the affiliate marketing company provides a simple way for their Publishers to find new products to sell. They track the sales, and pay the commissions.
For companies that sell a product or service, affiliate marketing should be part of online marketing strategy. For Publishers, affiliate marketing is a great way to monetize your site. And for someone who is very serious about it, you can make a huge income from selling products and services online for other companies. It’s all about driving traffic, and conversion.