The Benefits of Affiliate Marketing
Affiliate marketing - paying a commission for a set of affiliates to independently advertise your brand - is sometimes overlooked in the slew of online marketing opportunities. But for those in the know, affiliate marketing,
with its unique set of advantages, is an essential part of an effective online marketing strategy.
- Cost: 1) Pay-for-performance. With affiliate marketing, you only pay if a certain predetermined action is met. This could be a click-through, revenue. No payment without results!; 2) fixed cost. You also specify what
action will pay what amount. You always know what the rates will be; 3) by comparison. Search engine optimization (SEO) development. Just to increase your site's pagerank, can cost $76-$200 hourly. Per project, those
costs can reach anywhere between $1.000 and $7.500.
- Risk: 1) Low risk. Affiliate marketing is considered very low-risk, because you don't pay if it doesn't work. You don't have to invest capital in a strategy that might not pan out; 2) Market expansion. Low-risk means that
affiliate marketing is ideal for exploring new markets. While a whole new international marketing plan might be cost-prohibitive, affiliate marketing provides low overhead while giving you access to local marketing experts.
According to a 2012 McKinsey study, 440 emerging-market cities (including Beijing, Shanghai, San Paulo, and Moscow) are expected to contribute around half of global growth from 2010 to 2015.
- Time & energy: 1) By comparison. Social media marketing takes a good deal of time and energy, creating new content, replying to comments, and reading content to different sites; 2) Yet only 49% of small businesses
found it to be an effective marketing strategy in 2012; 3) Customizable programs. Marketing programs doesn't have to be arduous and time-consuming. Many merchants use: Affiliate network. Select a network that will take
care of everything for you, including giving creative help; Third party hosting. Leave the infrastructure up to the third party, but still set up your own terms and payment.
- Diversity: 1) Many birds, one stone. Affiliate advertising is a great way to utilize other forms of online marketing for lower cost. Affiliates will use their own skills to get your brand noticed; 2) According to the 2012 Affiliate
summit AffStat Report, affiliates used: SEO - 80%; social networking - 60%; Blogging - 60%; Email marketing - 40%; 3) And more. Developing an individual program for all of these aspects would take more time, and
more importantly, far more money.
- Popularity: 1) In 2011, SEO lead the way in popularity, and far outshone other strategies in the amount spent on it: $20.7 billion according to forrester; 2) social network marketing gets a lot of hype, and is growing in
investment: $1.2 billion; 3) Retailers, financial services firms, and online education providers are predicted to be the top three spenders; 4) However, affiliate marketing is gaining traction as a low-risk, high-return investment.
Forrester predicts affiliate marketing spending will grow to: $4 billion by 2014, increasing at an annual compound growth rate of 16%.
Prestige marketing Inc. | www.prestigemarketing.ca | 604.273.0002.
Sources: http://www.seomoz.org/blog/seo-pricing-costs-of-services; http://www.fatcow.com/knowledgebase/read_article.bml?kbid=5519; http://www.mckinseyquarterly.com/Strategy/Growth/Cities_the_next_frontier
_for_global_growth_2758; http://marketingland.com/affiliate-marketing-trends-for-2013-29374; http://www.fatcow.com/knowledgebase/read_article.bml?kbid=5520;http://img.constantcontact.com/docs/pdf/Small_
Business_Preliminary_Results.pdf; http://issue.com/affiliatesummit/docs/affstat-2012; http://www.forrester.com/US+Affiliate+Marketing+Forecast+2009+TO+2014/ful;text/-/E-RES54363;