Affiliate Marketing- Part I
"A system of advertising in which site A agrees to feature
buttons from site B, and site A gets a commission on any sales
generated for site B. It can also be applied to situations in
which an advertiser may be looking for marketing information,
rather than a cash sale. Popular among startups with very small
marketing budgets."
This is what you get when you do a search in Google for the
definition of Affiliate Marketing.
I still remember, my early days of induction into the world of
Internet Marketing, more specifically "Affiliate Marketing."
Till then, I was completely oblivious to this term. For most of
us, Affiliate marketing is a term that has different meanings.
Let me first move to the other side of the line and say that
affiliate marketing is nothing but unnecessary pop ups,
newsletter spam, affiliate tracking code cloaking and much more.
Now from the other side of the line, Affiliate Marketing is a
way to market your products online by signing up affiliates who
have websites and are willing to advertise your products on
their site, in return earning a certain percentage of the
commission from the sales they generate.
If you take a closer look, for one particular product or a
company, you will find server loads of affiliates, marketing the
company or a product. Now this is an indicator to itself of the
way you market your products on the Internet.
To talk about Affiliate Marketing, this one article would not
suffice. Hence, I have divided it into a series of articles.
Although I am very tempted to first write about "The tools to
improve an affiliate's conversions" let me stick to the
chronology.
Why does a company need an affiliate program?
Having defined, affiliate marketing, the next obvious question
that arises is, why a company needs affiliates when it can
market its products on its own.
To answer this, while a company may be very huge in terms of the
infrastructure, or has a really successful product, it cannot
sit silent and bank on its own strengths. Further to this, a
company cannot customize the look and feel of the site to suit
the tastes of the local markets. Although there are tools where
you can cloak your website, it would involve a lot of complexity
in terms of the technical and marketing demands. Hence, arises
the need for affiliates.
What makes a company look for affiliates?
Let