How Affiliate Marketing Can Stop You From Leaving Money On The Table
You have enough on your plate without adding something as time consuming
as affiliate marketing. Right? Nevertheless adding affiliate programs to
your online portfolio is a wise move.
The just released 2007 AffStat Affiliate Marketing Benchmark report
showed that the number of affiliates online is declining. Bad news? Hardly.
The same report also shows that affiliate conversion rates (customers who
buy) has increased anywhere from 1.6 to 5 percent. In a nutshell that means
less affiliate competition and more money.
Whether you start your own program or join one that belongs to someone
else, affiliate marketing can pay huge dividends. If you decide to start
your own program, you will gain a highly motivated sales force that will
generate free advertising for your business. The risk is negligible because
your affiliates only get paid when a transaction is complete. That is unless
you work out an alternative payment method.
There are four ways to set up the payment structure.
Pay per click: the affiliate is paid each time a visitor to their website
clicks on the advertisement and is taken to the main sales or sign up page.
Pay per impression: The affiliate earns a profit each time the
advertisement is shown.
Pay per lead: A visitor not only clicks on the advertisement but also
performs an additional action like filling out a form to receive more
information about your products and services. According to business experts
and the internet trend lines, this form of commission payment is expected to
skyrocket before the year is out.
Pay per sale: Pretty self explanatory and the most common method of
payment.
The key to making your affiliate marketing campaigns work is to find
affiliates with experience, a high traffic website and a proven track
record. The good thing about these kinds of affiliates is they do not
necessarily have to understand the business they are promoting plus they are
already motivated to make money.
Or you can do some homework and find a company related to your business
but not in direct competition. By finding the right approach you may be able
to persuade that company to share their target audience with you. Again just
make sure you are not in competition.
Setting up your affiliate marketing program is a snap. The toughest part
is deciding how you are going to pay your affiliates. As a suggestion, you
should probably stick with the tried and true pay per sale if you are just
starting out. However you decide, get started with your own affiliate
program now. The benefits greatly outweigh the risks and can go along way to
putting your business on autoprofit.
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