“Affiliates are an extension of your brand, ensure that your brand carries the same good name it started with.”
Affiliate marketing is one of the biggest advantages a business can when being online. A properly run affiliate program allows you to lower your costs, create a fixed marketing costs, control your marketing message on a vast scale, mass promote through your affiliate network, get your message in front of a bigger audience, and be on the forefront of creativity and innovation.
In an affiliate marketing campaign you pay your affiliates for sales that were generated through their marketing efforts of your products/services. For this article I will use the example of a business selling apples.
Example: You are selling apples online for $1.00 an apple, and you create an affiliate program of offering 20% of sales. For every apple the affiliate sells for you, they are entitled to 20% of sales, or $0.20. The more apples they sell, the more money they make and you make. This is money you otherwise would not have had. They will work hard with the marketing material you provide them and with their own tools, skills, and knowledge to promote your apples.
Create Fixed Marketing Cost
Since you are only paying the affiliate 20%, your marketing costs are fixed at 20% for that specific traffic. This will allow you to scale your sales upward by simply promoting your affiliate program and the benefits to website owners that want to make some extra money by linking to your website that sells apples.
Mass Promotions Through Networks
Since your apples brand’s online presence is growing and becoming more popular you can start selling specialized green apples, and relay this new product to all of your affiliates. Your relationship with your affiliates becomes stronger since you allow them to promote another great product for you, and open the opportunity for them to make more money.
Control Marketing Message on A Vast Scale
You apple brand’s identity is very important, so as part of your affiliate program your affiliate agree to not misrepresent your apples as another type of apple, or fruit. Since all of the apples customers are tracked through the affiliate program you are able to tell whether some customers have been told by the affiliates that they were really buying oranges. You can now easily get rid of the “bad apple” affiliates (Pun intended), and deal with the good affiliates that don’t hurt your brand.
Bigger Audience Reach
Since your network is made up of other website owners your brand is on website that normally would not have been, and now you are making money you would not have been making without the exposure of the website owners/affiliates. The bigger your affiliate network is the more people that see and hear of your special brand of apples.
Creative Innovations And Test Ideas
Some affiliate might decide to create recipe websites using your brand apples as the secret ingredient. Some affiliates might open up candy apple stores using your apples exclusively. Others might do sponsor contests using your apples as the center piece like bobbing for apples or apple pie baking contests. Since your affiliate network is huge and has several affiliates working individually trying to promote your product uniquely, different and creative ideas are created.
One idea might work so greatly that you start using that for your own non-affiliate marketing, which further reduces your costs. Affiliate networks allow your brand a huge test ground for new promotion ideas with exciting and outside the box thinkers.
Affiliate Marketing has huge potentials for any business. Most big retailers, and online brands have some sort of affiliate program since it allows them to reduce costs, and expand their market reach without increasing their spending until there is a sale made. The real beauty is that you only pay for the marketing for apples you sell. So if no apples are sold you don’t pay your affiliate anything. To learn more about how affiliate marketing can help your online business grow contact Karma Snack today.