The benefits of affiliate marketing
Affiliate marketing is a new way to maximise return on investment. It is a marketing model that is performance-based and it rewards affiliate partners for driving a desired action. This method is growing in popularity for lead generation. The publisher or affiliate promotes products or services on a commission – based payment model. There are a range of ways for brands to engage with customers, and this particular way is proving to be as effective as any. Below are the ways in which this marketing innovation can help execute a brand strategy.
1) Targeted sales – Affiliates can invite targeted audiences to respond to, play with an idea. If a business is selling beauty products, there is no point in wasting the advertising budget in attracting consumers who are interested in electronic devices. Affiliates are people who understand a business and are active in it, and hence who are more likely to bring about targeted sales from consumers. The wisdom and experience of the affiliates also goes a long way in maintaining a steady relationship with customers.
2) Performance-based – An affiliate program is performance based, hence an affiliate is paid a commission once the desired result has been produced . This motivates affiliates to drive a conversion a business is looking for. For a business, this result oriented payment ensures that the business is getting what it is paying for and it is not driving traffic that is of no value. This is a great advantage as a business can work with different types of affiliates through review sites, paid search, blogs and social media.
3) Less risky – As this form of marketing entails payment for performance rather than for clicks, it is a relatively less risky form of marketing in comparison to more traditional methods like advertising. The leads created will not need tending. On the other hand, there will be direct customers with whom relationships can be built. Amazon is an example of a very popular affiliate marketing program.
4) Boosts reputation – Affiliate marketing has many powerful benefits. Reputable websites and bloggers further the reputation of a brand and a business. Affiliates strengthen consumer confidence. During purchase, consumers are more likely to trust a third party’s opinions above content produced directly from the website of the business. Consumer Search has links to affiliates of The Home Depot, for instance. Its professionals personally examine and recommend Home Depot’s best products, and the consumers depend on the transparency of their opinions, while The Home Depot increases consumer traffic.
5) An increase in SEO- Affiliate marketing aids the SEO of a business. It does so by numerous backlinks to a site through blogs, websites, and social media pages. If a business is working with a popular influencer, then the audience of the influencer will share and tweet details about that business’ product. This helps to increase the visibility of a business and drive quality traffic to a website.
6) Scale traffic – Affiliate marketing enables a business to scale up at an appreciable speed, and with minimum investment. According to businessinsider.com, 60% of online customers are directly influenced by recommendations they come across on blogs and social media posts.