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The following article was published in our article directory on April 20, 2018.
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Affiliate Marketing Guide for Startup Business

Article Category: Marketing

Author Name: Bertrand Allard

When browsing the internet, users often come across certain websites that are also promoting other brands through sponsored content, banner or text advertisements, and even links that direct them to these brands� respective websites when clicked. This is a form of affiliate marketing.
Affiliate marketing is defined as a method used by companies in selling their products by employing third-party companies or individuals known as affiliates. These affiliates help promote the company�s products in exchange for commission.
Just like any other system, there are two approaches to affiliate marketing: you can either be the company (merchant) that offers an affiliate program or be an affiliate (publisher) employed by another company. In some instances, you can also manage to be both, if you are equipped with the right resources and skills. Either way, the goal of both parties is to generate leads and traffic, and ultimately convert them into sales.
As a startup online merchant or business owner, you would surely want to maximize the internet, and make your products and services known to a wide extent of users as much as possible. Your initial resources may only be limited to your brand�s website and social media accounts. As such, you may require an affiliate. It is important to carefully choose your online partner, as they are extensions of your sales force, and may either make or break your brand along the way.
Likewise, it is also necessary to assess your prospective online associate�s network. The more websites or email marketing lists an affiliate handles, the wider his network is.
Generally, affiliate marketing coincides with other internet marketing strategies to some extent, as affiliates also use typical online advertising tools that involve search engine optimization (SEO), email marketing, content marketing, and display advertising.
Upon clicking on these links or advertisements, a visitor will then be redirected to either the brand�s website or another e-commerce website to prompt product purchase. If he eends up purchasing the product, the company will then credit the affiliate�s account with the agreed commission � usually amounting to 5% to 10% of the product�s retail price, depending on the contract terms and conditions.
The good thing about affiliate marketing is that, it is performance-based. Thus, there is no need to worry about spending your money in ineffective and inefficient marketing efforts. The only time you will pay your affiliates is when they are able to produce visible and measurable results � in short, sales.
Back then, companies used to pay huge amounts of money for traffic and impressions alone. Initially, these may be a good stepping stone for your brand, especially if you are aiming to raise your brand�s awareness. However, these may not offer adequate return on investment in the long run. In addition, traffic, clicks, and even impressions could easily be generated by any software, which made these metrics insufficient and unreliable in confirming the program�s effectiveness.
As a result, and as technology evolved, the focus turned to qualified leads or actual sales. True enough, any marketing effort is considered successful only when it effectively translates into sales.
Nonetheless, a company may still set different metrics to evaluate its affiliate, depending on the objectives it wishes to achieve. Likewise, it is also essential to create and track a feasible timeline required for each phase in the product sales cycle: raising awareness, building customers� interest and desire, and lastly, encouraging purchasing decisions and actions.

Keywords: affiliate, marketing, system, tool, toolbox, internet, lead, sales, traffic, software

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