Nina Nestoroff | NinaNestoroff

Affiliate Marketing From A Company Standpoint

Feb 25th 2011 at 9:23 AM

A great many articles have been written on creating an affiliate marketing business. There have been articles written about how to set one up, why you would want to do so, the benefits of being involved, but this article is geared to the company or product owner/developer. This article explains why it is an advantage to the company to have affiliates who help market their products.

First, let's identify what an affiliate program is in regards to Internet Marketing. It is a form of advertising where others drive traffic to the company's website and produce sales. The marketer who provides the traffic and produces the sales through his efforts is awarded either monetarily or with other valuable items, such as advertising credits or even tangible items such as iPods, cameras or other gadgets.

Each marketer is provided with a personalized tracking number or link to use in his promotions that ties the purchaser or website visitor to him. By using this personalized link, an affiliate and the company he's promoting are able to tell from where traffic and sales come. The marketer is then compensated for his efforts. Basically, an affiliate program is simply a means of compensating people who help market and produce sales.

While this sounds pretty easy and straightforward, it can have its challenges. It is important for the company or the person in charge of overseeing the program to have up-to-date information and technical know-how. Armed with that, the possibility of having a successful, stress-free program increases greatly.

So, why would a company want to use an affiliate marketing program? Here are some of the reasons:

1. Cost Effective. Pay for results, not actions.

2. Inexpensive to run. Promotion costs are mostly borne by the marketers.

3. Leverage. Time and effort of promotion is spent by affiliates.

4. Low Cost. Companies/owners with limited budgets for advertising benefit from others' advertising.

5. Always Open. Company is always open since someone will always have advertising running.

6. Global. A global presence can be established by having marketers worldwide.

Basically the company's responsibilities toward its affiliates include having a compensation plan in place, creating the promotion tools such as ad copy and personalized links, having a program for keeping track of referrals and/or commissions owed, and paying on schedule.

Properly overseen and run by the company and setup and worked correctly by the marketer, this type of program provides a viable, profitable business association for all involved.

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