Affiliate marketing is a marketing method that has been around for years and is one of the original ways to drive traffic and generate sales. This is done by an online business paying an external source for attempting to do this, with the more traffic and sales that are generated through an affiliate’s referrals, the more they will be rewarded. These methods are still being used today, and most of the top companies have affiliate marketing schemes in operation, but just how effective are they?
The first thing to notice about affiliate marketing is the fact that it has stood the test of time. It’s been around for two decades, and during this time, there have been plenty of changes which could have derailed affiliate marketing and its effectiveness. In spite of this, it has constantly kept up with an ever-changing industry and adjusted where necessary. One can argue that this had to happen, especially in an online market space which has always been extremely competitive; and businesses having to use everything possible to gain an advantage.
Whether the company is about to be launched or a market leader, it is an effective marketing strategy that does not involve too much risk. It’s one of the most financially viable forms of marketing, as affiliates are only paid when they have been effective in some way. So, in effect, companies are only paying for something that has benefited them. Many CEOs admitted that it is ‘a valuable second revenue stream.’
A lot of companies these days set aside a lot of money to plough into marketing, with one common method being to advertise through social media. There’s not just the cost of the advertising; there’s the staff that is paid to put these methods into action and to go then on to monitor the progress. Affiliate marketing is a low-cost solution that is proven to work, meaning money can be spent in other areas of the business. Therefore, this relatively low risk and affordable marketing exercise, can also then free up cash and resource which can be employed in other areas to strengthen the company’s overall position.
Furthermore, companies that shell out a lot of money to advertise on Facebook for example, in most cases will opt for an eye-catching video produced and edited, while paying for an advertisement package on the Facebook platform itself. However, there’s no guarantee that these methods will have the desired effect, even though a lot of time, money and effort may have gone into putting the campaign together. Affiliate marketing is very different as there are measurable targets that have to meet so that the business only rewards affiliates who generate sales and meet specific criteria.
Another area where affiliate marketing is extremely effective is by helping businesses climb search engine rankings such as Google. If a company is on the first page of search results or even at the very top, they are more or less guaranteed a huge amount of traffic. These visitors could then go on to buy products and services. The inbound links provided by affiliate marking are the ones rated highly by search engines, contributing to a rise in the rankings.
Affiliate marketing is certainly effective and extremely beneficial to any online business. It’s cost-effective, and that must be one of the biggest advantages that comes with it. It’s also less time consuming than other marketing methods, allowing more focus on other areas of the business. Also, with affiliate marketing, advertisements can find themselves on thousands of different websites, and that can only be a good thing.