Affiliate Marketing – Build an Online Business Without Having to Build a Website
Affiliate marketing is now a major tactic to drive online sales and earn serious online income. Very advantageous to affiliate marketers and brands alike, the current push towards more traditional advertising tactics has definitely paid off. In fact: According to the E-Commerce Association, there is an estimated 10.1 percent increase in affiliate marketing spend per year in the U.S., which is expected to rise to $6.8billion by 2021. This is great news for everyone involved, and the following article will give you the top five reasons why.
The biggest reason why affiliate marketing is so appealing to businesses is because it can bring in a targeted audience of buyers for any product or service. With social media and other forms of internet marketing strategies becoming available on the web, it is very important for companies to find ways to keep their audience attention and to engage them in a way that will help them make a purchase. Unfortunately, in many cases, companies have not taken the time to properly develop their marketing skills and have instead resorted to trying to reach a wide audience with one narrow approach. By using social media and other forms of internet marketing strategies, this problem is solved, giving business owners a wider opportunity to promote their products and services.
Another big reason why affiliate programs are so appealing is because it allows for a much lower risk/reward ratio. For example, with pay per click and other pay per lead programs, a company only pays for each visitor that is converted from lead into a sale, or at least, that person is convinced that they will buy a product or service. In contrast, an affiliate marketer only pays if a visitor actually acts on the advertiser’s solicitation and buys the product or service.
Although affiliate marketing has many benefits, it also has some disadvantages. The most obvious drawback to affiliate marketing is that a company must pay to generate a lead or to earn money online. It is important to note that this does not mean that every time a company spends a single cent, they have generated a lead. The truth is, unless the visitor that a company refers to is specifically interested in the product or service, he or she may be led away by another website.
This leads to another disadvantage of affiliate marketing. Because a company must spend money in order to generate a lead or sales, it makes it impossible for them to earn a profit unless they can successfully convert a visitor into a buyer. A company must therefore carefully select each visitor that they want to advertise to in order to ensure that they are actually advertising to the people that will be most likely to buy their product or service. In addition, to keep costs low, affiliate marketing strategies often include pay per click or pay per lead programs, which cost a company a small amount for each lead that they generate. These programs are effective, but they can quickly become expensive if a company relies on them exclusively to earn a living online.
By using affiliate marketing to build a network of customers who are likely to purchase a specific product or service, a company can greatly expand their reach and take their business globally. As an example, an affiliate marketer who operates a network of people who have similar tastes in music may be able to promote CDs by the artists whose songs are popular among their audience. If one of these CDs becomes popular enough through affiliate marketing to sell, the affiliate marketer may earn money on every sale of the album. Alternatively, they may earn money only when a visitor to their site clicks on the link to the band’s site and purchases the song or CD. Regardless of which method a company uses to generate an audience, it is important to remember that they must target a niche audience in order to succeed with affiliate marketing.