Vesta Digital Blog

What is Affiliate Marketing and Why Does My Business Need it?

Posted on: September 21, 2010

Affiliate MarketingIn theory, affiliate marketing is the fuel that powers e-commerce. Everyone wins with affiliate marketing. The company profits, affiliate marketers earn a commission, and consumers have more access to the products they are searching for.

What is Affiliate Marketing?

Many businesses expand on affiliate marketing in an effort to gain more traffic to their website and business. Affiliate marketing is the idea of rewarding other blogs or websites for every customer that is referred to the original company. So, the affiliate marketer’s priority is to bring as many visitors to the affiliate’s website as possible.

Often times, affiliate marketers sell high-involvement products that require the consumer to be educated before the purchase. Affiliate marketers are required to not only advertise and promote the product to consumers, but also begin the education process required by uninformed consumers.

Generally each individual affiliate marketer has his or her own set of regulations about how the advertising will be done. Due to the fact that there is no association or organization for the industry of affiliate marketing, there is a lot of room and flexibility in marketing methods. It is extremely cost-effective, because affiliate marketers earn a commission from converted consumers, as opposed to traditional marketing strategies that have upfront costs and financial risks.

Affiliate Marketing for your Business

If you are trying to market your small business online, you should certainly consider employing the use of affiliate marketing. The main reason being: it’s cost effective. It’s a strategy that would only cost you after you have already converted a customer. So regardless, you profit.

There are varying types of strategies a business can use to drive traffic to their sites. These strategies may include e-mail lead nurturing, or social media marketing. However, while these tactics may very well drive an increased amount of traffic to a business’s website, what does it do for converting viewers into buyers?

Affiliate marketers deliberately seek out potential customers and pitch the product to them by addressing how the product will solve whatever dilemma they are facing. This strategy allows marketing efforts to be completely focused and targeted, rather than casting a giant net out into cyberspace, hoping to catch and keep a few customers. Using affiliate marketing will allow you as a business to increase sales at a much lower cost.

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