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Why do affiliate marketing?
Affiliate marketing is an essential channel for driving customer acquisition. As broadband penetration and consumer spending online continue to rise rapidly, so too does the importance of a successful affiliate program.
As an advertiser, affiliates are an extension of your sales force. They refer potential customers to your site, and are rewarded for those that convert. The payment model is Cost Per Action (CPA), which means you only pay when a valid action occurs on your site – e.g. a sale, an order, an application etc. As with your own sales team, you define the action and you confirm when it has occurred.
Affiliates aim to drive high quality, converting traffic to your site in order to maximise their return. So in addition to 'sales', you also increase the overall traffic to your site and help to grow awareness of your brand online, at no extra cost or risk to you. The key to success is balancing the needs of advertiser and affiliate, to maximise return for both.