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Affiliate Marketing Sensible for Small Business Owners ornot?

Affiliate marketing is one of the platforms where business owners makes marketing strategies to advertise their products or services through an advertiser. Here, the company owner pays a pre-agreed commission to third-party affiliate’s each time the marketing efforts leads readers to the desired conversation area i.e. the advertiser’s web page. Affiliate marketing further depends upon several affiliate marketing models like leading to the conversation for increasing product/services sale or for software download, etc.

So, if you spend considerable amount of time over social media sites like Facebook and Instagram, it is likely that you have seen or even made shopping through affiliate’s links. Every time you click upon an affiliate link to make purchases; the influencer gets commission. Basically, the entire process is mutually beneficial for both of them as the company gets sales and the nfluencer gets more traffic and commission for sales.

Affiliate link defined

The URL published in any website by its publisher is known as an affiliate link that sends users traffic to company’s website. The affiliate can also be defined as a web publisher which drives traffic to business owners in exchange of certain commission fixed upon product/service sales. These links can be tracked easily that allows company websites see which publisher or advertising partners are driving customer traffic along with sales for the owner of e-commerce website.

Affiliate marketing models

  • Pay-per-performance-Under this affiliate marketing tool, advertisers pay their affiliate marketers for their efforts that results in direct sales or leads customers to their webpage.
  • Pay-per-click-In this marketing strategy, company owners i.e. advertisers pay affiliate publishers whenever a referral on affiliating website leads readers click through any banner, graphic or text link to advertiser’s webpage. Here, readers may not make purchases from advertiser’s webpage, but the affiliate marketer earns a commission. It makes easier for marketers here who has got low-traffic commercial site as they succeed in affiliate marketing with little effort.
  • Pay-per-scale-This marketing model proves to be the most conversational one and thus, is demanded by most of the online business owners.
  • Pay-per-lead-In this model, affiliate marketers are paid whenever users does any action that causes them in becoming a lead. For instance, filling an application form or try a free software and so on. This kind of affiliate strategy is most useful for those marketers who operate in sectors where gaining leads become highest priority like real estate and finance related industries.

How does affiliate marketing work?

Whenever any business, whether small or big sets an affiliate program, it invites various companies to join in its affiliate program. The business owners then provide affiliates with those content that can help them in making promotions of their products or services. Different affiliates have different methods to make promotions out of which major ones are listed below:

  • Loyalty: These kind of affiliate programs offers its users with incentives that makes them do purchases from links provided. For instance, cash back or reward points for clicking upon the affiliate link.
  • Deal/Coupon: In this program, affiliates have strong email list or SEO.
  • Blogger/Content: These is one of the most desirable affiliates as they drive new traffic in the form of readers.
Small business owners can make partners with affiliate networks and with publishers, though they may not get direct access to these websites. The partnerships can help business owners reach targeted and re-targeted audiences along with gaining potential buyers’ response. Affiliate links even help business owners monitor their performances through publisher’s individual link that can further assist in making strategic decisions for overall success.

Affiliate Marketing Tip for small business owners

Have a good product or enhanced service put up for sale- If you wish to paly a good advertiser role in affiliate marketing business, you must own genuine products/services list in which you have control.

Determine best affiliate marketing tool that suits your business type: This is one thing which needs to be looked thoroughly by advertisers. Pay-per-performance marketing model, as discussed above can help in increasing your audience list the most. Since, you pay only for the sales or leads unlike other programs, there is a huge prospect to get enhanced sales.

Select affiliate program- Affiliate platforms like AffiliateWP and Refersion will help you in tracking your affiliates, sales and per person click from affiliate pay-outs and referrals.

Invite other affiliate marketers- Once a marketing platform gets chosen, you must have built an affiliate network that can recruit affiliate marketers. Participate in various ongoing affiliate marketing techniques after joining the network. This will help in tracking banners and links to the customers site for making promotions of services or products.

Task performance monitoring- Use various tools available for affiliate marketing that can help you in monitoring the performance of your marketing program. Along with it, try and make adjustments that can determine your program being lucrative for your business.

Pros and cons associated with affiliate marketing

Pros-Affiliate marketing gets you increased sales where the sales team gets paid only if they sell your product/service. The type of commission paid entirely depends upon your choice and thus there is nothing that gets your time and money wasted.

Other than increased sales, affiliate marketing boosts your brand image through promotions and advertisements made on different channels for getting traffic and customers to your site. Although your competitors may be using same techniques, it is high time you get proactive or else you may get archaic for your customers.

Cons-One of the major disadvantages of affiliate marketing is the risk involved for small businesses due to intense competition with big brands that makes them difficult to sustain with limited budget. The affiliate partners can participate in organic search engine drivers to rank the run and may outdo your company’s programs to be on top search list.


Putting succinctly, it can be said that although you need to strive through intense rivalry, affiliate marketing ads to your market share where you can end up making more sells as compared to physical marketplace. Afterall, competing with affiliates is always easier than competing with business rivals. There are few affiliates also which uses spam mails, infringements of trademark and making false advertisements to increase promotions. These may impact your business highly as people may get a notion that your business is also filled with spams and can blame you for not fulfilling as promised. Therefore, making strict promotional rules and guidelines along with taking active involvement with affiliate marketers to succeed in affiliate marketing. So, it is always advisable to choose best Web Hosting affiliate programs like HostGator, DreamHost, iPage, HostPapa, A2 Hosting, Bluehost and FatCow.



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