Affiliate marketing is a form of marketing based on revenue sharing. If a company wants to increase the sales of its product, it provides financial incentives to the promoters through an affiliate program. This form of marketing is widely used as a source of passive income across the globe. It is one of the most popular passive income sources in the market.
Affiliate marketing is structured as a relationship between three parties – the merchant, the affiliate, and the consumer. Although, the merchant and the promoter need not be two separate entities. A company can be both the producer and the promoter of a product and yet can gain profit by the revenue sharing model. The merchant is the company or inventor with a product to sell.
The affiliate promoter/marketer/ range from an individual to a full-fledged company. The motive of these companies is to attract and persuade the customer to buy the marketed products. Such companies may market a single kind of affiliate product or a varied range of them depending on their size and reach. The most common form of affiliate marketing is by running review blogs as it is done by both by the marketing individuals as well as the big companies. Other methods used are marketing through social media, billboards, etc.
Now even with these two beams in place, the whole structure stands on the consumer. Without the purchases made by the consumer, there will be no revenue generation and hence no revenue sharing, therefore, crumpling the underlying idea of the whole affiliate marketing structure. Costumers typically do not pay a higher price for marketed goods as the cost of the affiliate marketing is included in the retail price and may or may not be informed that the product is paid to be marketed. Disclosing of this information completely depends on the affiliate party and most of them choose to be completely transparent with their customers.
Many merchants seek the help of a well set-up company for the promotion of their products. These affiliate companies generally market products using four major steps :
- Product Reviews – The products are reviewed on various platforms from Instagram to YouTube to other social media platforms. The most common of them all is through blogging as discussed earlier.
- Emails Collection – Companies cannot rely on the hope of getting their promotion efforts noticed, they need to have a list of prospective customers. This is done by using pop-ups, sidebar widgets, etc. The most common method used is providing a good or service free of cost or at a great discount to the first time registering customers.
- Live Webinars – Live webinars with product plug-ins such as ‘Score the highest in CAT exam (how I scored 99%ile using Arun Sharma books) are another way the products are marketed and emails are collected for future use. This method results in huge sales in a short period.
We use all these methods with the infamous Pay Per Click method to increase the sales of the products. We have a long list of leads of prospective customers that helps a lot in the sales. The company maintains a good track record of increasing sales through our affiliate marketing program.