Affiliate Marketing Annual Conference is a great resource for Affiliates and Publishers

Affiliate Marketing: Is it right for your Business?

There is a successful Bozeman based business discussed their business strategy in the Daily Chronicle.  The owner was not interested in a growing sales through a retail distribution network because he did not like the fact he had to sell his product for half of what they are worth (typical wholesale retail spread). However, another option would be to develop an affiliate marketing program, a win-win solution.  The company can utilize this outside force for lead generation. The basic strategy would be to expand the sales force and market reach without having to hire.

Affiliate marketing is one of the most cost-effective investments you can make, but getting started can be challenging if you’ve never done it before. Determining if affiliate marketing is right for your business is the first step for you and your company.

Why it makes sense for some businesses?

As a proven sales model for a variety of product categories, Affiliate Marketing is a powerful way to generate
sales. If you already sell your products or services online then it is likely that affiliate marketing is a channel that
can help increase revenue. Affiliate marketing is performance based which means you only pay a commission
when a sale is made or when another commissionable event takes place like filling out a form.

Affiliate marketing has one of the highest return on investments for online retailers, second only to in-house email marketing. The main benefit to online retailers is that commissions are tied to sales, so you only pay for performance. Average commissions will vary by product category and depends on your sales strategy. A key strategy leading up to the launch of your program is to look at the commission rates offered by companies in your industry.

Generally it will take you about an hour and a half each day to manage an affiliate marketing program. For the first few months, experts strongly recommend you add approximately two to three hours a day to kick start your
program and get it on the right track. The key to managing an affiliate marketing campaign is to recruit top affiliates to promote your company. Stay tuned for more posts about the secrets to recruiting and retaining publishers.

Return on investment can be measured in a variety of ways depending on your goals and your overall marketing and sales strategy.

Typical Advertiser goals for Affiliate Marketing is brand exposure, Increased site traffic, Online revenue growth, and product specific promotions.

The more time, planning and optimization you put into your Affiliate Marketing channel, the higher the return on
investment you will see.

What are the next steps for a Bozeman business?

Connect with us to determine if Affiliate Marketing is right for your business and to find out
how quickly you can start generating revenue from a new marketing channel. If you are interested in more information, we can work with you and offer best practice guidance on how to align your Affiliate Marketing program with your objectives. During the first part of January, we will be attending the Affiliate Summit conference in Las Vegas. A follow-up to this post will follow that covers new trends in affiliate marketing.

{ 1 comment… read it below or add one }

McKinnon Baxter January 13, 2011 at 8:59 am

I am a real believer in the Affiliate Marketing business model. The bottom line is that it works, and the beauty of it is that you only pay when it DOES work. – McKinnon B.

Leave a Comment

Previous post:

Next post: