What is Affiliate Marketing, and How do I Become an Affiliate?
- Affiliate marketing connects sellers with buyers through third-party publishers who advertise their products
- Tracking software helps merchants pay affiliates commissions in return for referral traffic that converts
- Networks magnify relationships between merchants and affiliates, helping sellers narrow in on target markets
- Smart Funnel provides a platform for both sellers and content providers to grow and diversify their revenue
A Triangle of Mutual Endorsement
On the basic level, affiliate marketing is a three-way relationship between a merchant, an affiliate publisher, and a customer. At that level, relationships grow one at a time, with merchants and publishers seeking each other out to promote products to their ideal target market.
This specific type of marketing tactic has been around roughly since the dawn of the internet. It’s similar to many other advertising models in that it connects potential customers to a product. Where it differs is that the seller of the product pays out commissions in exchange for web traffic that affiliate publishers refer to the product’s sales platform.
It’s a kind of performance-based marketing, similar to PPC advertising. The more traffic an affiliate publisher can refer to the merchant, the more the affiliate earns in commissions. Likewise, the merchant is more likely to make a sale. The way the triangle operates is through a technical process that starts with affiliate links. These are hyperlinked text or images on the affiliate publisher’s website or blog that direct viewers to the merchant’s product page. Once there, the potential customer can choose whether to purchase. Tracking software notifies the merchant that those particular conversions were the result of a referral from an affiliate. The affiliate then receives a commision on the sale. Both the affiliate and the merchant can grow their businesses based on the revenue provided by the customer, who enjoys the product.
A Win-Win-Win Business Model
As with any business venture, there are some risks and drawbacks, but on the whole, it’s a win-win partnership.
The greatest potential for success or failure of an affiliate marketing venture always lies with the merchant and the viability of the product they’re selling. The affiliate, on the other hand, is very unlikely to risk any kind of loss. The exception to that general rule is when the affiliate damages their reputation by promoting a bad product from an untrustworthy merchant. Other than that, their success mostly depends on the size of their audience and the relevance of the product to the audience’s interests. A good product promoted to an interested audience is marketing at its finest!
What makes it win-win-win is the customer experience. They benefit from being introduced to a relevant product marketed by a trusted content provider. This dynamic not only boosts the odds of a sale but also of high customer satisfaction and repeat business.
An Expanding Network of Stronger Triangles
Modern affiliate marketing adds a powerful additional player to the cycle: the network.
Consider these two facts about the power of networking:
• It is the most cost effective marketing tool available
• Networking referrals will typically generate 80% more results than a cold call
With that in mind, an affiliate network connects merchants and publishers faster by bringing them all together in one place and providing a foundation of trust. Merchants looking to expand their brand awareness can reach out to multiple publishers at once. The network also provides merchants with the opportunity to laser-focus their marketing by appealing to very specific audiences. Publishers who want to provide more value to their audience and earn more income can offer to market multiple relevant products.
The benefits magnify on all sides!
Affiliate Marketing With Smart Funnel
Smart Funnel’s affiliate marketing network helps client businesses work with trusted affiliate partners. We help merchants grow market share and lead generation strategies by helping them place affiliate links where their target market is most likely to find them. The publishers in our network provide an authoritative endorsement of the quality and relevance of those products to their audience.
Whether you’re a merchant looking for new marketing avenues, or a publisher seeking to diversify your revenue stream, contact us today to join our affiliate network and start watching more and better conversions roll in than ever before!
