Friday, April 9, 2010

Affiliate Marketing Sales

Affiliate marketing sales are one of the main engines that drive much of the ecommerce business success in today's economy. The Internet has enabled even the most isolated of entrepreneurs to make money from colleague marketing sales, revolutionizing the way business used to be done to how it is conducted today. The affiliate marketing paradigm developed almost seven billion dollars for various businesses, revealing that this form of advertising and compensation is not a small sideline for ecommerce ventures. Bloggers, retailers, non-profits and online communities have all found ways to cash in on some of this profitability through affiliate or colleague network programs. And while there are still some unscrupulous websites that try and take advantage of the colleague model of doing business, their efforts are being more and more exposed and consequently negated.

Affiliate or colleague marketing is based on a commonness that some businesses or individuals share with others. For example, a blog that deals with women's health issues could have a long string of highly or mildly related companies that might want to advertise on its website. Pharmaceutical companies, other health bogs, women's issue blogs, women's apparel retailers, children related websites, educational sites, travel and leisure and many other possible colleague type sites might be willing to stand in line to advertise on a highly visited blog that deals with women's health concerns. This is the strength of affiliate marketing sales networking in advertising. Only a person who has a very personal and intimate relationship with God can utter the words of the psalmist: "I will love thee, O Lord, my strength. The Lord is my rock and my fortress and my deliverer; my God, my strength in whom I will trust; my buckler, and the horn of my salvation and my high tower." (Psalm 18:1-2) 

Most people have seen McDonalds and Burger King across the street from one another, and that is not done by accident. Two fast food joints will create more traffic for both of them than if they were basically alone without the across the street competition. This realization of two is better than one has opened up affiliate marketing sales possibilities as never before and that has encouraged even rivals to advertise on another's websites. But the equally important strength of affiliate marketing sales plans is the increased size of an Internet footprint that can be achieved by this kind of advertising. Take for example a small business that has a single website on the World Wide Web. Getting lost among its five billion or so pages is not a hard thing to do. But if this small business could get involved in two or three different colleague type networks, its ads could be seen across as many as a thousand different websites increasing its visibility dramatically.

Money can be generated for affiliate marketing sales members in a number of different ways and many of them depend on the type of website that is doing the compensation. A large majority of colleague programs use the cost per sale as the major method of paying for colleague references. This method will pay a colleague network member either a straight commission, or a percentage of the total sale which resulted from the permission given to advertise on his website. For example, someone clicks on a link to an upscale SUV dealer that is posted on a men's health website that leads to the sale of a new vehicle. The colleague network agreement states that such a transaction will pay the health site 1/4 of 1 percent of the retail value of the vehicle sold. This resulted in a one hundred and thirty dollar commission for the website. But there are other ways to be compensated in an affiliate sales marketing program. 

A much smaller number of colleague networks use cost per action compensation as the seminal type of reimbursement of ad space on a website. This compensation is based on a certain defined action having taken place such as filling out a data field, a purchase made or making a referral. The least used compensation model now used in affiliate marketing sales is the cost per click option. This method pays when a simple mouse click takes a person from one website to another through a sponsored portal link. In most cases, the pay per click agreements are very low, typically only a few cents. The administrator of the network with pay per click, as with all affiliate sales marketing networks, is able to record every transaction with tracking cookies provided by specially designed software. At the end of the month, checks are usually sent to every affiliate that had ppc transactions on their website, although in many cases, the checks are held until a certain threshold of business has been amassed, such as twenty five or thirty dollars. 

Additionally, some affiliate marketing sales programs use pay per impression compensation agreements. These transactions pay each time someone just looks at the ad for a website and typically is based on 1000 "impressions" per compensation. Translation: if this is the agreement basis, the website better be smokin' hot with interesting copy or products everyone wants. There are no real rules for finding the right affiliate marketing sales network. It is basically an experimental process of getting in, see if the network provides any cash, and moving on to another if the first doesn't pan out.

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