Saturday, December 27, 2008

Advertising Your Business on a Budget Making Affiliate Marketing Work for You

Affiliate marketing can be a very valuable tool to internet merchants who are looking to increase traffic to their sites. It is well known that one of the most challenging things a new internet business faces is learning how to drive traffic to their site and market their products. This type of marketing is specifically designed to appeal to merchants who do not have a large sales force or unlimited advertising budgets, however want to increase their sales and presence on the internet.

So, are you ready to learn how it can work for you? Great! Let’s start with a synopsis of how affiliate marketing works. Internet merchants contract with affiliates or other websites who agree to place ads on their websites that links to the merchant’s site and services. When a customer comes to the affiliate website and clicks on the ad, he is taken via a link to the merchant’s site thereby increasing traffic and sales. Amazon.com is one of the pioneers of affiliate marketing and still uses affiliates to market their products. We have all seen those banner ads for Amazon,com on the internet. However what most don’t realize is this generates revenue for the affiliate as well. This makes the marketing a win win situation for both merchant and affiliate alike.

The most popular type of affiliate marketing is called pay per sale or revenue sharing. Consumers visit Amazon.com via the affiliate link and purchase merchandise. The affiliate then receives a set amount per sale. Costs for the merchant include set up of the campaign and the revenue sharing as indicated above.

Another type of affiliate marketing is called pay per click or pay per view marketing. This type of marketing appeals to newer merchants and service providers as it is less costly than pay per sale marketing. Two examples o this type of marketing are Bravenet’s budget campaign and Google Adsense. Bravenet gives merchants the ability to purchase key words through them to increase traffic, or offers them advertising that drives a number of users to the merchant’s site.


Google Adsense works like this. The affiliate places Google ads on their site. Visitors on the site then click on the ad which is linked to the merchant’s site. Affiliates are paid a certain amount per click. This is a very popular marketing tool used by bloggers and others who want to receive revenue from their sites at no cost to them. Whether you are a merchant, service provider, or affiliate, this is a great advertising tool for you. No matter the size of your budget, there is a program for you, giving your internet business the recognition and sales that it deserves!

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