Saturday, October 20, 2012

Commissions in Affiliate Marketing - Is It Worth It?

A few day's ago I downloaded a book from written by Ian Daniel titled, "E-Commerce Get It Right." The book contained some very useful information pertaining to e-commerce and marketing. One of the areas I've been wrestling with is what exactly to sell and how to best market it. I know there are countless articles, books and videos on the subject and you can get your head turned in several directions all at once if you're not careful.

Affiliate marketing can be a lucrative strategy but for all the success it can bring, if done incorrectly it can fail miserably. The basic formula is that a website owner (myself) will host another company's links, banner ads, or other product information on their own site. If a visitor clicks on these links and makes a purchase, that company pays the hosting company a fee. In essence affiliate marketing is a revenue sharing arrangement.

Affiliate programs have grown quickly since their inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. For affiliate marketing to work on your website you need to offer products or services that are related to your own content and ones that your visitors will be interested in buying. Now I'm looking for good affiliate marketing programs that add value to my website and ones that pay high commission rates. It takes hard work, knowledge, and time to see the financial benefits of a successful affiliate marketing program. Since I'm just starting out I'm anxious to see how all this will play out.

The industry has four core players: the merchant, the network, the publisher and the customer. The market has grown in complexity to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors. The market has grown in complexity and until a couple of days ago I had very little idea as to the potential affiliate marketing can have for ones business.

The growth of the Internet has made affiliate marketing a necessary facet of a web advertising campaign. This popular approach is indispensable in selling products and services to an online audience. Fundamentally, you can grow your business and make significant money without ever having customers in the traditional sense of the word. You can reap huge financial rewards from affiliate marketing if it's done correctly but not everyone shares the same level of success

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