**By: The Legend

Why is Affiliate Marketing Important?

Affiliate marketing appeals to merchants because it is a pay for performance model, meaning the merchant does not incur a marketing expense unless results are realised.

Why you need an Affiliate Marketing strategy…

• Expand reach
Want more customers? More leads? More sales? Affiliate marketing allows you to sell your goods and services via a wide range of websites and blogs (and paid search networks), without the need for a huge marketing budget.

• Brand exposure
Raise perceptions of your brand through exposure on quality third party websites. This is a free benefit for merchants, since they do not pay for advertising.

• Drive revenue
Well-run affiliate programmes, with proactive affiliate managers, can generate terrific returns for merchants. It is important to liaise with affiliates on a regular basis, making life as easy as possible for them. You also need to identify and engage your best performing affiliates, to ensure that they get the best out of their efforts.

• Inform marketing activities
Learn from affiliates about what is working in terms of pricing, offers, products, propositions, landing pages … and what is not working. For example, you can watch the best performing affiliates to see how they write their Google ads for the best response. These skilled practitioners can help you improve other areas of your business.

• Reduce costs/financial risks
Merchants have a virtual sales force without having to worry about staff salaries, overheads, sick pay etc. The CPA (cost per action) performance model is very cost effective in this respect.

• Measurability and accountability
Affiliate networks have lots of tools to help you track your campaigns. Combine this information with your web analytics and sales data to see the big picture and measure ROI.

Related Blogs: IssaGh.blogspot.com , affiliates.digitalriver.com

Copyright © 2008 The Legend