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March 19th, 2011, 12:58 AM #1Companies Shifting to Affiliate Marketing only
I have observed on internet that few organizations (mainly Small enterprises) who has product or any service that can be sold offline but they are perusing Affiliate Marketing Channel only to promote their product. Personally I believe that’s great but I think that it increase the expenses as Affiliate commission and Affiliate Marketing Software’s cost too but it helps other ways such as eliminating marketing budgets, less Marketing staff, less sales staff etc. I would like to see what others say about such trend, I believe it’s a good thought who want to spend less and earn gradually….[B][COLOR="Purple"]Maria Jarel[/COLOR][/B]
[COLOR="Black"] Partnerships Executive[/COLOR] |[COLOR="Green"] Logoinn.com [/COLOR]| [COLOR="DimGray"]The Art for Business
April 2nd, 2011, 03:01 PM #2
I'm surprised no one has commented on this yet!
I really believe AM is the way to go for selling products and services. There has always been some kind of 'referral reward' in a business vernacular, but now it's just more structured.
I am a bit surprised that companies are pursuing affiliate only sales...how exactly does that work? They've stopped selling their product, and are only allowing their affiliates to sell it? If a company has a sales team that works on commission, isn't that the same concept as affiliate marketing anyway?
April 2nd, 2011, 03:41 PM #3
- Join Date
- January 18th, 2005
I've encountered several merchants who have chosen to rely on the affiliate program as their primary mode of attracting new visitors and customers. However, a well-designed site will still attract organic traffic, and most merchants eventually add other marketing strategies (such as PPC search, sometimes designing PPC campaigns using the data that comes through the affiliate clickstream).
I'm also aware of some companies who operate multiple "merchant sites," one of which is designed specifically to be "affiliate-friendly" and/or "coupon-friendly," while others set lower pricing or include features that might alienate some publishers (affiliates). Sometimes it's easy to identify the "related sites," and sometimes the relationship is very well-hidden.
Starting a merchant site and relying exclusively on affiliate marketing is likely to be a very slow and difficult enterprise. Other marketing strategies (especially PPC search) can quickly generate data that the merchant can use to revise and improve the web site; relying on feedback from affiliates is a much slower and less reliable strategy (and if the site looks bad, affiliates won't educate you about how to improve it -- they'll just look for other merchants, so you'd never really know why you're not drawing traffic or sales through your affiliate program).
QB, it's important to recognize that affiliates don't sell products -- they publish advertising that draws traffic to the merchant's web site, where the merchant sells products or services. A merchant who chooses to rely exclusively on affiliate marketing would still handle all aspects of the transaction, and over time the merchant would inevitably acquire transactions that aren't trackable to an affiliate source.
Last edited by markwelch; April 2nd, 2011 at 03:49 PM.
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