Affiliate Marketing

• Expanding into new markets

• Cheaper than producing comprehensive marketing campaigns

• Performance-based reward system
  

Advantages of Affiliate Marketing

The desired action that a potential customer needs to take in order for an affiliate to be paid a commission, varies and can include website visits, a form completion or purchase (sales).

The advantages for a company owner:

▪       It’s based on performance. The company owner pays only when the action agreed via the affiliate programme takes place, without having the overhead of producing comprehensive marketing campaigns

▪       Saturate existing and expansion into new markets. Affiliates are active in many markets and sectors and often have their established databases / fan-bases

▪       Partners’ opinions matter. Potential customers perceive a message (for example: a recommendation) communicated by partners, different from when the company communicates it. An Affiliate angle is a different angle 

▪       Increased traffic, links, positive effects on existing SEO efforts

The KOSADEL team offers various Affiliate Marketing strategies. We assist with affiliate programme creation and we help with finding relevant and reliable affiliates. Affiliate Marketing is continuously evolving and many see the advantages of becoming an affiliate. 

The advantages for an affiliate:

▪       Independence, regarding online presence and daily activities. Affiliate marketers do their job independently. They earn passive income online, scheduling their activities and tasks as they wish. Sometimes they work from home

▪       It’s low cost and many can use this form of marketing model. Since there are no complex barriers to entry, it is often just a website that needs to be created and an affiliate programme to be chosen, in order to participate in Affiliate Marketing activities

▪       There are many affiliate programmes to choose from. Affiliates look at what works best for them, optimise and repeat successful patterns. Affiliates can leave a programme that doesn’t work for them

▪       Challenges and issues related to customer service stay with the company owner. Customer retention is mainly the company owner’s interest

▪       Promotional materials are often provided by the company owner. Affiliates don’t have to create banners and other materials.



▪       Affiliates can be creative using their blogs, Social Media platforms, emails and even PPC campaigns

It is crucial to create good programmes, that are attractive to many. Amazon has the largest Affiliate network, not only because it lets Affiliates promote all items sold on their platform, but because of the transparency of processes and commissions. 

The Affiliate Marketing Challenges and Dangers

It wouldn’t be fair to only speak about the advantages of Affiliate Marketing. As with any other marketing model, there are challenges and dangers one needs to be aware of and act accordingly:

▪       Revenue and recurring commission aren’t guaranteed. Since Affiliate Marketing is performance-based, without the desired action taken by a customer, no commission is paid to the Affiliate. Furthermore, Affiliates often drive new leads, but aren’t paid a commission for a repeated purchase by a customer they brought to the company.

▪       Affiliate programmes are created and owned by companies. Affiliates depend on the companies and must follow their requirements. There is only so much they can suggest companies to adjust. There is the risk of unattractive programmes

▪       Spammy and misleading marketing. Some Affiliate Marketers engage in fraudulent behaviour, putting a company’s good reputation at risk

▪       Expecting quick gains without doing proper work. Excellent Affiliate Marketing needs time, high-quality content and customer engagement. It’s not just about inserting a code on a website and waiting for the money to come in



▪       Avoiding responsibilities. Both parties have responsibilities, not only Affiliates. Sometimes, there are occasions where companies don’t pay affiliates for their work, as agreed

For our clients, we create marketing strategies and campaigns, paying attention to the advantages and gains. We carefully assess patterns and scenarios to avoid unethical and even fraudulent behaviour. Many years of experience in Affiliate Marketing programmes enable our specialists at KOSADEL to see risks and potential dangers.

It’s important to make sure that unethical affiliates do not enter programmes to cause damage. 

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