Affiliate marketing is a powerful approach to generate a steady traffic and promote company’s products & services and get maximum return on investment. Comparably, it is expensive marketing technique than content marketing, PPC advertising, etc. It provides an effective, measurable, result-oriented and efficient way to enhance leads and sales to get more revenues on invested amount.
Basically, Affiliate Marketing Involves 3 Entities
A person, who is interested in marketing his/her services and products globally through online website, is called Merchant.
Affiliate is someone who promotes products and services of merchant with the help of own website.
Online visitors, who are seeking to avail or use products and services, which are offered by merchant.
Let’s have a look at commonly used types of Affiliate marketing
* Pay Per Click
This is highly demanding strategy, which is used by mostly business owners to increase revenues. The merchant site pays according to per click on link that is available on affiliate website to come on merchant’s site. It doesn’t matter for affiliate whether or not visitor purchase, once visitor reaches to merchant’s website. PPC is costly, but revenue increasing technique.
* Pay Per Sale
In this strategy, affiliate sends a customer to merchant site who purchases something from them. Some merchant websites like Amazon.com pays either a percentage of sale to affiliate or a fixed amount per sale.
* Pay Per Lead
If you want to pay their affiliates according to the number of visitors, then pay-per-sale is the best option. Merchant will pay only whenever the visitors fill out some requested information at merchant’s site, which are used as a sales lead.
Most Appreciating Models of Affiliate Marketing
A lot of models are available that offer such a great affiliation opportunities to any merchant. Here are some popular of them:
* Text Links or Banners
Banners and Text links are the one of the oldest and proven marketing models that is widely used by small sized as well as medium sized businesses. Banners and text links are designed creatively that clearly explain the services & products offered by the merchant website. Whenever, visitor clicks on such type of links or banners, he/she will be directly forwarded to merchant’s site, where he/she can find out details of products before sealing a deal. In this model, merchant pays a per the agreed upon affiliated program.
Many merchants setup multiple affiliate storefronts because of a number of reasons such as promotion of specific product line, regional languages, currency differences, and many more. These storefronts target to specific audience and influence for efficient selling. They can quickly setup their niche storefront without product promotion website and physical inventory. When visitors choose product to purchase, he directly forwarded to payment page of merchant’s website, then all the sales are handled by this website.
* Multi-tier Marketing
Some merchants also offer multi-tier affiliate model to distribute commission in a hierarchical manner or network. It means that when an affiliate provides referral or sale, he will earn commission on sales and even referrals.
* E-mail Marketing
Direct email marketing is also a good approach to promote products, if it is done in a right way. In such technique, e-mails are directly sent to the users. Check out quick tips for email marketing that really converts.
Essential of Affiliate Marketing for Magento E-commerce Website
Magento is an open-source, most reliable, scalable and secure platform that offers various facilities to e-commerce website owners like multi-domain, cross-browser compatibility, user-friendly, easy to maintain and multi-store capabilities. In order to get any of above amenity, use result-oriented Magento platform with your e-commerce website to enhance traffic and revenues. Check out essentials of Magento web design.
Magento offers all requires features to use free like easy to sign up for sale, flexibility, link management, banners management, discount and payout configuration, account management, automated performance tracking, and much more.
A well-proficient website blogger, Steven Bowen is expert in designing and development. He is associated with a leading product designer software company – No-Refresh and delivers his keen ideas and informative resources through blogs for designers and developers.