Quick & Cheap
Affiliate marketing is considered one of the most efficient and cost effective ways to drive online revenue for online businesses. It is a strong advertising tool for any brand online as it provides affiliates and the merchant with a strong incentive to sell products. The affiliate marketing arena has grown rapidly over the last 10 years and we now see more and more online brands embracing this marketing avenue simply because it is so cost effective.
Low cost entry to the market
Most marketing channels have some sort of fixed set up cost that is deemed expensive especially if you are a startup or new to the online world. Cost per click needs to have a hefty budget to make it pay, the same with remarketing, and SEO. They all have high costs attached to it. With affiliate marketing the only cost attached to it would be your set up cost to the network. Once you are set up your only costs will be paying out commission on successful sales.
Only Pay for Sales
As mentioned above the one main benefit of running an affiliate program is you only pay out on successful completed sales. This is a huge benefit to your brand as you know affiliates will strive to drive good quality traffic to make sure they get the sale. Poor quality traffic will inevitably not convert so you will never pay out a commission.
One huge benefit of running your own affiliate program is the amount of free traffic it can generate. By running your own affiliate program you open yourself up to a huge audience base. You could be dealing with sites that have customer bases of five million plus. Great brand awareness for you.
Effective Use of Marketing Budget
With affiliates being a performance based Marketing Avenue it is a great way to get the most out of your marketing budget. By only paying for good quality traffic that converts in to a sale you really do minimize any risk on your marketing spend. Even when not making a sale if your program is driving good traffic it still presents an excellent opportunity to get huge brand awareness for free.
Easy to Track
One great benefit you get by signing up with an affiliate network is the tracking platform they provide. Affiliate networks invest heavily in their platforms to make it as easy as possible for you to track your clicks and sales.
Affiliate networks allow you to clearly see which affiliate is sending traffic to your site, and which affiliates are making sales, with a wide range of different affiliate types, being able to see what affiliate type works well for your program you will be able to build your affiliate marketing strategy around them. It will also show you which type of marketing tool works best for you. This could be banner ads, link placements or data feeds.
Exposure is the key element of any affiliate marketing strategy, and through the affiliate marketing channel you can gain massive exposure and promote your products and services to a whole new audience you were not able to tap in to before.
This huge brand exposure to new prospective customers will only have positive effects on your website traffic. Just looking at the benefits we have highlighted here in this article, it is clear that the affiliate marketing channel is a serious and must have channel to your online marketing mix. It is cost effective and allows you to open up your brand to a whole new world of customer.