Affiliates Marketing
Affiliate marketing is widely regarded as the next evolutionary step in online advertising, and with Banner response rates coming under scrutiny it might have emerged at just the right time.
The affiliate concept is so simple and easy that it is possible for everyone to be a winner, with little risk to any party involved.
SO HOW DOES AFFILIATE MARKETING WORK?
Lets use an estate agent as our working model with its associated professions. Houses 4 Sale Ltd. partners an affiliate programme – or revenue sharing agreement, with various occupations including Best Mortgages Ltd. They each place a link or perhaps a banner on their web sites. The banner can be as simple as “Get the Best Mortgage Here!”
So if for example you were in Houses 4 Sale web site and clicked on the Mortgages link, you would be sent to Best Mortgages.co.uk site where you would have the chance to arrange a mortgage for your new house purchase. In return for giving up some remnant space on their site, Houses 4 Sale would receive a commission on the mortgage bought. As for Best Mortgages.co.uk they have added to their extensive ad network with links targeted directly at them and all for no cash outlay. Remember Best Mortgages.co.uk pays out a commission only when visitors actually take up a mortgage.
Setting up links is technically simple and inexpensive, and, according to affiliate expert and author of Business to Business Internet Marketing Barry Silverstein, the very nature of the web makes these links easily traceable.
“An affiliate can be as aggressive or passive as desired in promoting the sponsor’s products. In some cases, the affiliate’s primary objective may be to enhance a web sites service component, so the additional income from the programme is just an added benefit”.
“From the site visitor’s perspective an affiliate programme is an added benefit. The visitor can now purchase products or services from your site. If those products or services are relevant to your site’s topic area, then the visitor’s experience is even further enhanced.”
Significantly, most affiliate programmes can easily be adapted to meet the needs of the business to business marketer.
Second only to Amazon.com in terms of e-commerce leadership is Dell Computers. Dell announced its first-ever affiliate-marketing programme in March 1999. With over 50 charter members, the Dell programme relies on LinkShare, the largest affiliate network, to bring its products to more than 65,000 affiliate sites. LinkShare technology will track and monitor all Dell sales through affiliates. According to Dell, affiliate marketing is expected to significantly contribute to the company’s goal of 50% of sales via e-commerce by the end of 2000.