Business can not exist without leads and sales, and for this reason affiliate marketing has its place.
Affiliate marketing is a simple concept of a product promoter (affiliate) referring a customer to a business.
If the customer makes a purchase, the business will pay the affiliate a commission.
Read on to learn about affiliate marketing’s benefits for both the affiliate and the merchant.
More Customers For A Small Fee With No Out Of Pocket Expenses
For businesses engaging in affiliate marketing, it is a cost that can be subtracted from revenue.
As the merchant gets sales, they can collect customer contact and payment information with minimal cost.
Which can be used to market to these buyers in the future.
Customer acquisition costs can be built into the product price, to keep revenue at a steady rate.
Businesses which engage in affiliate marketing, generally can afford to advertise more than those that solely advertise.
Paying for Performance Not Time
Merchants pay affiliates based on sales. Not an hourly rate.
For businesses that pay their employees a working week’s wage, there is a loss of productivity at many workplaces with employees chatting, checking social media, playing games, and hanging around when they should be working.
Affiliates understand that if they don’t produce results they don’t get paid, and as a result waste less time.
Top selling products are identified and promoted by the top affiliates, making affiliate marketing more profitable for the merchant.
The affiliate is the one who has done the work of acquiring the customer, and warming them up to buy.
This makes affiliate marketing a lucrative sales tool.
No Employees Everyone Is a Self Employed
Affiliates are not employees of the businesses that they promote.
Therefore there is no need for office space, employee benefits or bonuses, superannuation payments, sick pay, leave payments, or wages.
Programs like Clickbank pay a high commission rate
Affiliate Networks like Clickbank pay high commissions to affiliates making the cost of doing business for affiliates attractive.
Most product vendors both digital and physical pay a 50% to 75% commission.
Amazon pays a low commission but customers spend more – higher customer value
Amazon product commissions are some of the lowest in the industry but they offer the largest possible range of products.
The Amazon Associates Program is unique in that it increases its affiliate’s ability to earn on every product purchased by the customer.
Limited cost to get started
The cost of affiliate marketing for affiliates ranges from 0 – $80 a month depending on the tools the affiliate uses.
Most affiliates have a blog, a tracking tool, and an autoresponder.
If they have a blog they are paying $20 for a domain per year, $10 a month for website hosting, $15 – $50 for use of an autoresponder, and $20 for a link tracking tool.
No need for the affiliate to get involved with customer service
Being an affiliate is a hands off business.
The job of the affiliate is to acquire the customer and get them in the mood to make a purchase.
If the customer has a problem with the product, their first port of call is with the product vendor.
The affiliate does not need to get involved in customer service related to billing or technical support.
You can work your own hours
To be an affiliate marketer all you need is a computer and an Internet connection.
You are not tied to working 9-5.
This is convenient for parents, employees and students or anyone who finds it more convenient to work their own hours.
Travelers can use affiliate marketing to keep income flowing giving them the freedom to work from anywhere in the world.
Once you have built a customer base you can keep marketing to this group and continue to earn
The secret to continued success with affiliate marketing is to build an email list.
Once you have a sizeable email list you can use it to promote products to them every day.
Needed by business for increased sales
No matter what some people say about affiliate marketing, it is not going away. It is an essential tool in business for businesses to continue to get leads and sales cheaply on a continued basis.
As you have read affiliate marketing has benefits for both the merchant and the affiliate. The merchant can keep customer acquisition prices low and affiliates benefit by receiving large commissions for the customers that buy.