Definition: A way for a company
to sell its products by signing up individuals or companies
("affiliates") who market the company's products for a commission
There are two ways to approach
affiliate marketing: You can offer an affiliate program to others or you can
sign up to be another business's affiliate. As the business driving an
affiliate program, you'll pay your affiliates a commission fee for every lead
or sale they drive to your website. Your main goal should be to find affiliates
who'll reach untapped markets. For example, a company with an e-zine may make a
good affiliate because its subscribers are hungry for resources. So introducing
your offer through a "trusted" company can grab the attention of
prospects you might not have otherwise reached.
You should also make sure you
aren't competing with your own affiliates for eyeballs. Any marketing channels
you're using, such as search engines, content sites or e-mail lists, should be
off limits to your affiliates. Put marketing restrictions into your affiliate
agreement and notify partners immediately. It's your program--you set the
rules. Or, if you prefer, you can let your affiliates run the majority of your
internet marketing.
Once you've protected your
prospecting pool, maximize your affiliate program by working with the best and
leaving the rest. As the old 80/20 adage implies, most of your revenue will
come from a very small percentage of your affiliates. Because it can be
time-consuming to manage a larger affiliate network, consider selecting only a
few companies initially, and interview them before signing them on. Affiliates
are an extension of your sales force and represent your online brand, so choose
partners carefully.
And what about joining another
company's affiliate program? It's all about extra revenue. Think about your
customers' needs: What other products or services would interest your site
visitors? Join those affiliate programs. Affiliate programs can increase your
sales with no upfront cost to you. It just takes a little time to plan your
strategy and select the partners that will have the greatest impact on your
business.
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