Why Affiliate Marketing is So Effective to Make Money Online

In affiliate marketing as a business model, an affiliate makes money online simply as a business partner who helps a product merchant sell products with a view to earning commissions. Essentially, to make money online, an affiliate simply acts as a bridge that connects potential customers to e-commerce stores. It is a performance-based business arrangement and a great way to make money online. The main role of the affiliate in the business arrangement is to simply direct buyers to an e-commerce store. Once these buyers make a purchase, the affiliate earns a percentage of the sale as commission. The affiliate receives a commission for each buyer that visits the e-commerce website and makes a purchase. The more sales the affiliate generates therefore, the more money he makes. The actual terms of the collaboration and commissions payment depends on the affiliate scheme run by each individual affiliate program. Most reputable and very large e-commerce programs like SFI, Strong Future International, ClickBank and eBay run decent and profitable affiliate networks.

 

Here is why Affiliate Marketing is so effective.

As most digital marketers very well know, affiliate marketing has proven to be very effective in driving traffic to online e-commerce stores for several reasons, prominent among which are:

Progress is Easily Quantifiable: Each affiliate has a unique affiliate link or code for easy attribution of marketing results. Depending on the agreed interval of commission payment, whatever quantum of sales attributable to an affiliate can be easily quantified and commissions due calculated out of it. It is thus fairly easy for each affiliate to get an accurate picture of his returns.

Payment is Performance Based: In affiliate marketing business model, affiliate earnings and payments are performance-based. Affiliates earn commissions based on the work they’ve already done not what they are yet to do. On the part of product merchants, it always makes more budget sense to pay commissions out of the sales they’ve already made and at known internals which in most cases is monthly. Because affiliate marketing is based on performance, it ensures a better return on investment. What’s more, the traffic the product merchant receives is always relevant, since the products are promoted by well-matched affiliates. 

Building an Online Presence: Product merchants and affiliates are both independent business persons in their own capacities. They have their own audiences and marketing channels. When affiliates use their own online assets to compliment the assets of the product merchants, building online presence for products on offer becomes easier and faster. In marketing efforts, that is some collaboration that works well for both parties. Most product merchants tend to work with affiliates they believe are reputable and already have a strong online presence and great audience. This helps to better enhance the online presence and credibility of the product merchant.

Easy Tracking: Most reputable affiliate programs like Strong Future International, SFI, ClickBank, Amazon and eBay have in-house software modules that allow them to easily track and manage their affiliate programs. They are able to easily measure and monitor the performance of each affiliate in their network. This info is readily available to affiliates themselves to help them gauge their performance at any point in time. Such info becomes quite useful to help affiliates devise their own advertising strategies and marketing campaigns for better and more results-oriented marketing.