Affiliate marketing is a type of performance-based marketing where a business rewards its affiliates for each visitor or sale that is brought by the affiliate's marketing efforts.
It is beneficial to both the merchant and affiliates as affiliate marketing is based on a revenue-sharing model, for merchants this is a low-risk way of promoting their products and for affiliates, it offers a great opportunity as they can promote products and for every sale or visit that takes place through their promotion they can earn rewards such as commissions.
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Enables you to reach out to a wider audience
Increases customer confidence in your products
Cheaper than traditional marketing
Turns visitors into customers
Provides a better return on investment (ROI)
Affiliates can help you reach out to a wider audience since many affiliates already have an established base of followers, your products get directly marketed to their follower base. It is one of the best ways of marketing for smaller companies, although even bigger companies like eBay and Amazon use affiliate marketing to promote their products.
Affiliate marketing also helps you in reaching a large number of people by the use of social media platforms such as Instagram or YouTube.
A major problem faced by new businesses is that customers are not ready to spend money on a new store or try a new product. When affiliates, who have credibility among their followers, promote your product, this helps in building up customer confidence for your products and store.
Affiliate recommendations play a huge part in getting newer customers to trust new businesses and products.
Affiliate marketing is a low-cost form of marketing. Traditional marketing methods such as billboards, banners, pay-per-click ads are expensive and become difficult to sustain especially for smaller businesses.
Affiliate marketing is practically free to set up and you only pay affiliates when you see results, such as sales of your products.
The more affiliates you have, the better chance you will have of converting visitors into customers. The higher number of visitors that visit your store using referral links of affiliates, would also translate into more chances of those visitors making a purchase.
This increase in visitors also translates into a higher number of organic traffic, as a result, more people will be searching for your products and navigate pages of your website
Affiliate marketing provides the best return on investment compared to any other form of marketing as you only pay once a sale has been made. Affiliate marketing programs are easy to track and manage.
It helps in rapidly scaling your business and sales, without putting out a lot of money into marketing.
Affiliate marketing has become a great way for merchants to get their products out to customers in a much more cheaper and efficient way, it also helps you reach a wider audience. It also increases customer confidence in your products. This translates into better sales.