Martin Lee Affiliate Marketing

First of all, I will explain to you what an affiliate program is.

An affiliate program is simply a program whereby a company pays you a commission every time you refer a client or prospect to the company and he completes a required action. Examples of such actions include making a purchase or filling in a form. We will refer to this as conversion in the rest of this article.

Traditionally, this was also widely practiced as a formalised referral system whereby you were rewarded with gifts or vouchers for “refering a friend” to a product or service that you were already using. Recall seeing those promotions from your banks?

With the advance in technology, such referral systems have really taken off and this kind of promotion method is now better known as affiliate marketing. It is possible to simply send an website link to your friend through email and if there is a conversion, the computer system will be able to track it and credit you accordingly.

The growth in affiliate marketing is also due to the very nice fit between companies and affiliates.

For companies, using affiliate programs offer them a risk free way of increasing their customer pool and revenue . Instead of spending money on instituitional marketing which do not give measurable results, they can set aside part of their marketing budget to pay affiliates for sending customers to them. Paying only for performance ensures that every marketing dollar is well spent.

For affiliates,affiliate programs gives them a way of monetising the traffic to their websites without the need to create their own products. All they need to do is to put up a website link on their own site linking to the company and get paid whenever there is a conversion.

Since now they do not need to worry about things like stocking of products or shipping, they can afford to spend more time on producing content on their website to attract more readers.

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