Affiliate Marketing

Affiliate marketing is the practice of an advertiser paying a third party to publish ads on their web page. Payment can be given as either a percentage of a sale or as a fixed sum for each conversion. When a visitor to the third party web page clicks on the advertiser’s ad and performs an action, such as filling out a contact form or making a purchase, the third party will receive the agreed upon payment from the advertiser.

Why does TrackMaven think that Affiliate Marketing is important?

When done carefully, affiliate marketing can be a lucrative method of advertising to compliment an existing marketing campaign. This form of marketing has the potential to be very cost effective since the advertisers do not have to pay for advertising space until a consumer performs a desired action. Whereas PPC and CPM ads require payments regardless of conversions, affiliate marketing programs only result in costs for advertisers if a consumer converts.

A great medium for affiliate marketing is a blog. Blogs receive high traffic and are read by a large audience. Advertising a product through an affiliate blog is a great way for a company to gain exposure to consumers who may not already be in its network. Bloggers often promote a product on their blog by embedding a link in their content, then encouraging their readers to make a purchase. Advertiser’s should carefully assess their affiliates beforehand to make their marketing ventures worthwhile. Things to look for prior to deciding on an affiliate are site traffic, the affiliate’s relationship with its readers, and the nature of the affiliates web page in relation to a product.