4 Reasons Why Affiliate Marketing is Important and its Downsides
Every business today is implementing affiliate marketing as key marketing strategy. It has gradually become one of the best advertising tools in the current times due to the revenue it generates for both the merchant and the affiliates (in form of commission).
While it’s a part of almost every industry these days, online business (ecommerce stores) are the major beneficiaries of this marketing strategy. While it helps you to promote your brands, you can also go mainstream and earn a handsome passive income when done correctly. According to the statistics, nearly 80% of merchants and affiliates gain from some kind of affiliate program.
What is affiliate marketing according to a marketer?
It’s all about promotions and online advertising done by an affiliate or merchant with a unique tracking link in an affiliate blog/website that directs to the merchant website. Affiliates also use trusted affiliate marketing tool to keep a track of the clicks and conversions in real time to stay updated on the numbers.
While the marketer’s brands, products and services get the much-needed limelight on the internet platform. The brands and services also get the desired visibility with the help of the creatively written product descriptions by the affiliates. This is one method to attract online audience and perhaps one of the best approaches.
Given that business world is an ever-growing sector and there’s huge competition with the other traders, the need of affiliate marketing also keeps rising among the dealers. Let’s see how affiliate is important for your business?
- Fantastic opportunity to earn a passive income promoting already known products/services
There is a business and to grow their business they need online marketers for increased revenue. And, who better than an “affiliate” can help it make it possible?
Having your own blog or website is a big plus as you can benefit from affiliate marketing in earning a passive income by being an affiliate of the already known products/services. What’s the advantage of selling popular products? Because they are already famous and do not need much convincing skills to sell them to the shoppers. The best part is, you don’t need to put in too much efforts for marketing because the audience will search for such product automatically.
Well-known products are popular among users and the reason can be anything from high-quality to the features or benefits that suits the shopper’s requirement. You can tap on this popularity to attract more online shoppers and redirect them to the main website. In return, you make a lot of money with low efforts.
- A better alternative to building your company
Wondering why? Well, firstly, developing your own products uses a chunk of your time. The entire process involves planning, creating an abstract, experimenting, and more. Moreover, your products should also be proven and tested for quality to gain customer attention. There is not only added responsibility than what you would require in affiliate marketing, but you also come up with something unique each time.
Building your own company requires a lot more than what affiliates already do and to ensure that everything works fine and, in your favour, you must start from the bottom.
Besides, simply advertising other’s products and services take much lesser efforts than opening a new business. It takes a whole lot of planning, strategy and the thinking on the regulations and ore that takes a lot of your time. Moreover, starting a new company or creating your own products/services has its own risks because it involves a lot of investment.
Affiliate marketing on the other hand just needs website or a blog, and all you need to do is to promote already well-known products using your own marketing strategies. No risk of your investments, efforts or credibility that are otherwise required in starting a new business.
- The process is not as complicated compared to other jobs
The entire process of affiliate marketing is much easier than any other job as it involves only five simple steps.
- Sign up for an affiliate marketing program of a reputed brand or company. You can even choose to sign up for more than one affiliate programs of famous brands, at a time.
- Now, build your own affiliate site (in case you do not already have your blog or website). Then use the unique tracking link given by the merchant. Finally, connect your website to the main landing page of the merchant. When a buyer clicks on the link and makes a purchase you get paid for the sale.
- Sign up for a quality affiliate marketing tools from a trusted name and start tracking your clicks and conversions in real-time. Associate with a tool that also offers the opportunity to connect with other affiliates and influencers in their network.
- Repeat the first three steps with your other affiliate programs.
That being said, make sure that you are updated with the latest skills and methods in advertorial marketing.
- It churns out revenue much faster in comparison
Affiliate marketing churns out profits much faster than in selling your products/services. The reason being, in your own business you need to recover the investments made to start with and then count on the profits. Affiliate marketing, on the contrary, only requires the investment of your time, efforts and marketing knowledge. You do not need to invest a single penny for signing up for the affiliate programs.
The fact that affiliate marketing offers commissions for each sale made, sometimes a lot higher because it’s the percentage of the company’s income, it churns a lot more profit than many big companies. Bonus – a feeling of being a part of a much larger business community. Additionally, you get a handsome and stable payout from these well—known companies.
Once you know the importance of affiliate marketing over opening a new business, all you would need is an eye for the right product, the required marketing skills, the right affiliate marketing tools, staying updated with the current marketing trends, and the right attitude to make it big with affiliate marketing.