Definition: A way for a company to sell its products by signing up individuals
or companies ("affiliates") who market the company's products for a
commission
There are two ways to approach affiliate marketing: You can
offer an affiliate program to others or you can sign up to be
another business's affiliate. As the business driving an affiliate
program, you'll pay your affiliates a commission fee for every lead
or sale they drive to your website. Your main goal should be to
find affiliates who'll reach untapped markets. For example, a
company with an e-zine may make a good affiliate because its
subscribers are hungry for resources. So introducing your offer
through a "trusted" company can grab the attention of prospects you
might not have otherwise reached.
You should also make sure you aren't competing with your own
affiliates for eyeballs. Any marketing channels you're using, such
as search engines, content sites or e-mail lists, should be off
limits to your affiliates. Put marketing restrictions into your
affiliate agreement and notify partners immediately. It's your
program--you set the rules. Or, if you prefer, you can let your
affiliates run the majority of your internet marketing.
Once you've protected your prospecting pool, maximize your
affiliate program by working with the best and leaving the rest. As
the old 80/20 adage implies, most of your revenue will come from a
very small percentage of your affiliates. Because it can be
time-consuming to manage a larger affiliate network, consider
selecting only a few companies initially, and interview them before
signing them on. Affiliates are an extension of your sales force
and represent your online brand, so choose partners carefully.
And what about joining another company's affiliate program? It's
all about extra revenue. Think about your customers' needs: What
other products or services would interest your site visitors? Join
those affiliate programs. Affiliate programs can increase your
sales with no upfront cost to you. It just takes a little time to
plan your strategy and select the partners that will have the
greatest impact on your business.