An Introduction To Affiliate Marketing
You may have heard of the expanding sales and high income generated by affiliate marketing, but the zealous advocates may have given an imbalanced view. You also need to know the drawbacks of this sales method. You may have heard that many affiliate marketing networks fail, so you have questions that need to be answered about this exciting method of marketing that has blossomed on the Internet. This article will give information for the beginner and try to answer some of your questions.
What is the basic structure of affiliate marketing? Think of the merchant who is offering products as the hub of a wheel. From that hub he extends links to affiliates, a sales force that generates traffic to his website. When sales result, the affiliate gets a commission, but that is not the end. This structure can be projected further outward. Theoretically, it can expand almost without limitation. For that first layer of affiliates can in turn recruit affiliates whose sales are channeled through themselves, receiving part of the commission. Each layer can generate another sub-layer. When this network is set up and run well, it can generate a tremendous amount of income from sales. Each layer expands the customer base of the business. This sounds great, but as you have guessed, it is not necessarily easy, and has pitfalls.
The advantage of affiliate marketing is an expanded sales force who are sub-partners in your business, driving new sales, making your business ever more widely known, expanding it in the seeming infinity of cyberspace. The down side of affiliate marketing is that a network never quite achieves this theoretical success. It requires down-to-earth management over a network of enthusiastic entrepreneurs, keeping them under control and doing the right things to build a sound business. As affiliate marketing has taken off on the Internet, it has drawn enthusiasts who use unethical forms of advertising: spamming, hidden tracking cookies, techniques that skew SEO, 'adware' and other methods that create spurious 'leads' and, in the end, turn away customers. Since an affiliates only compensation is through generating sales, you do not have the same leverage that a business manager has over employees. You have to create accountability in your network, so that it does not damage your business through questionable practices. Responsible affiliate marketing businesses have tried to establish ethical standards and uniform practices, but have so far only been partially effective. Responsibility rests mainly on the individual merchant.
Since there is so much competition between similar businesses on the Internet, finding a niche market has become a key to success. Thus your affiliates' advertising needs to be targeted to a niche consumer base. Out of a vast sea of customers, you want your net to bring in those who have a real interest in your product.
This article has given information to help you get started in affiliate marketing. As you go along, you will learn more. Participate in online forums established by affiliate marketers. There you can learn a lot and also make your own voice heard.
