What is Affiliate Marketing by Affiliate Bots?

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Affiliate Marketing is the practice whereby a person or company is paid a set fee (or sale percentage) for each referral they send to a product or service that completes an agreed upon action. The action that triggers the sales commission to the affiliate can be as simple as getting a user to enter their zip code or email address on a specific web page, to completing a sale or getting the customer to subscribe to a service. Depending on the level of difficulty of the action, and the value of the product, flat rate payouts can range from $0.80 to over $150.00. If it is a subscription service affiliate commissions can be recurring for as long as the customer maintains their subscription.

 

Why would someone pay you to sell their product or service?

Marketing and promoting products by traditional means is expensive. There is a lot of overhead associated with creating a commercial, developing print or radio ads, running/monitoring campaigns, or displaying your ad on relevant websites. If you don’t have a marketing staff to run, develop and track this, 9 times out of 10 you are woefully inefficient at guessing what ad copy resonates with your customers, and ultimately throwing money out the window. If you have a Marketing department, well that costs a lot of money to run too. Creating an affiliate program provides a cost-effective advertising solution for product developers because it:

  • frees them of the marketing and promotion hassle, allowing them to focus on their core competency (i.e. creating product)
  • allows them to set up a performance-based pay incentive – That is, affiliates are paid only if they deliver “the goods” (i.e. the results you specify in advance). This is much better than the shotgun approach of impression-based promotions that suck money out of your marketing pocket regardless of whether they convert (i.e.  generate sales).
  • provides inexpensive product advertising. In fact, there is no advertising expense. Instead you pay commissions for activities that produce results.

Why would you want to sell someone else’s product or service?

That’s easy. If you’ve ever created your own product you know you can spend years in the design/development phase. Then you have to find a manufacturer, several distributors. Then you have to tirelessly market and promote your product. You have to deal with manufacturing defects, warehousing of product, rework, obsolescence, customer sales, returns, refunds and support. Lather, rinse, repeat this for each product you develop and it can be difficult to make money, let alone grow your business. The small profits you make need to be reinvested to purchase additional inventory, support the development of new ideas, pay salaries (even if it’s just your own), and support the operations of your business. What makes affiliate marketing so attractive is that you are paid for referrals you send for products you are interested in promoting. Because you don’t have to deal with any other aspects of the business you could promote several products at once. To summarize, the benefits of Affiliate Marketing are:

  • No inventory
  • Since you don’t have a store or inventory, you don’t have to deal with point of sale issues like collecting money, supporting products, refunds, returns or exchanges.
  • You work for yourself and set your own hours. You have no one to answer to but you.
  • Since Affiliate Marketing is typically done online, the whole business can be run from your home office.
  • Once a campaign is properly setup a passive income stream can result which means instead of standing behind a counter or reporting to an office to make money, you can spend time with your kids at the park, pursue personal interests, enjoy a movie, plan another campaign, etc. while the income comes in.

Resource: Affiliate Bots Review

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