How Affiliate Network Marketing Is Cost-Effective For Your Business

How Affiliate Network Marketing Is Cost-Effective For Your Business

Affiliate network marketing is a type of business partnership between merchants and website owners/publishers. To describe it in simple terms, it is a digital sales strategy. You want to market your products/services on a third party website. Visitors come to the third party website, see your products and come to you through your advertisements or other incentives. Now you compensate that partner for every click, sale or revenue generated by those visitors. Thus affiliate marketing is an effective online marketing strategy.


The Affiliate Marketing Triangle:

    This joint partnership is basically a relationship between 3 parties:

  • Advertiser or the merchant which sells products, services or policies
  • Publisher or an individual/company which promotes an advertiser’s products through their websites
  • And finally, the consumer, who sees the ad, performs some action like clicking the ad which redirects them from the publisher’s website to the advertiser’s website to make a conversion.

The Affiliate Program Commission Payment Models:

    • Cost Per Click (CPC): This model rests on visiting. A visitor to the affiliate’s or publisher’s websites clicks on a merchant’s banner and visits the merchant’s website. So an affiliate gets a commission/cost per click.
  • Cost Per Sale or Cost Per Acquisition (CPA): The affiliate refers a visitor who buys goods or purchases any service from the merchant.
  • Cost Per Lead (CPL): The affiliate refers a visitor to complete a form on the merchant’s website. This model rests on registration.

How is Affiliate Marketing cost-effective?

    Many businesses are applying this strategy to bring in revenue. Let’s see the obverse side of this marketing approach that makes it cost-effective:

  • Merchants need not spend time and money searching for customers. They get a bigger place to connect with the audience and market their products/services. This results in more customers and with more customers come more revenue.
  • Marketing and advertising products through TV, print and social media and billboards may gobble up a lion’s share of your budget. But if you choose marketing through affiliate networks, you need to pay only for what you get.
  • If you go by the cost per acquisition model, you would compensate only if the customer performs any action. How much to rely on Facebook or Google Adsense, without any guarantee of ROI?
  • You can improve your site’s ranking naturally, by promoting it through affiliated websites since they show your website to millions of people. And many of them are likely to become customers availing your products or services.
  • Since affiliate marketing is performance-based, it reduces the amount of money you spend to fetch a new customer. Similarly, it reduces the risk of having a truly bad return on investment.

Besides being cost-effective, affiliate marketing has other advantages like it can be tracked. You can judge your performance on the different affiliate websites and know which affiliates are working for you and which are not.

It is never too bad to explore the unknown. You have got an idea of how affiliate network marketing can benefit your business and save your money. So why run behind those traditional ads, display banners or pour money into the ad networks’ accounts? Small or big business, you will surely bring some positive changes to your promotional strategies with affiliate network marketing.