Imagine an opportunity you have as a business owner to market your product with low budget, low effort and less time while reaching out to a specific audience for your product? If you are asking about the value, let’s say you will enjoy a guaranteed return on investment, business growth and brand awareness. Does this sound too good to be true? Well, affiliate marketing is real and you can definitely avail yourself of the opportunity and benefit the same. Read this article to know more.
What is Affiliate Marketing?
It is a marketing model in which influencers and brands promote a company’s product to their audience. In this case, they come to be known as affiliates. They get a performance-based incentive per sale. For example, many influencers and YouTubers today market some of Nykaa’s products through their Instagram and YouTube channels. Nykaa provides each influencer with a unique link through which they can do so. Whenever a customer buys a product through that particular link, the affiliate will get a percentage of the sales made.
Benefits of affiliate marketing
No matter what mix of marketing strategies today’s companies are adopting, most retail companies don’t forget to incorporate affiliate marketing because of its many benefits. Some of which are:
Since affiliate marketing is a performance-based model, it saves companies from the burden of committing to their marketing partner even in times when no sale is made. Also, because the affiliates know that the more sales they make, the more they get to earn, they are even more driven to increase the sales as much as possible. This benefits both the companies and the affiliates.
2. Broadens client base:
an affiliate is someone that can be found in any industry, with any background. Since there is a lot of diversity in the affiliates a company partners with, it also exposes the company to the affiliates’ networks. For example, let us say a company is operating in the north of India but wants to expand in the southern parts as well. However, it does not have any customer base in that region. The good news is that it does not need to worry about carrying out the market research. It can partner with affiliates from the south who already have a well-established connection and who can help the company sell its products.
From being a performance based model to help broadening the customer base, we can see that it is cost-effective. Also, if you only pay the affiliates when a sale is made, you are not wasting your money on ads or promotions that might not convert into a purchase. Unlike other marketing tactics, affiliate marketing does not require you to invest first and then get the ROI. It takes away that risk factor.
Affiliate marketing is a risk-free marketing strategy. It helps companies improve their reputation and increase traffic on their sites. It totally depends upon the company as to how big or small of an affiliate program they want to start which makes it an extremely feasible option. As the market size is growing, we will hopefully be able to see many companies adopting affiliate marketing.