Trust means a lot in business
Why You Should Have An Affiliate Marketing Strategy
What is an Affiliate?
Affiliate marketing is the next step up from referral marketing.
Affiliates are basically other businesses who share the same profile customers that you're looking for.
So, if you sell material to printing companies a great affiliate for you would be companies who sell inks to printing companies. As long as they sell a different product to the same market they'll be an ideal affiliate for you.
How does Affiliate Marketing work?
Once you've identified that a potential affiliate has your ideal market and a nice big database of customers then you come to an agreement for them to promote your product to their database. If one of their customers buys your product, you pay them an affiliate fee.
The power of this process is that they already have the trust factor. That means that the content they send out about your product will more than likely get read and you'll get business. The money you save on endless marketing activities to warm up cold leads will more than cover the cost of any affiliate fees you agree.
You can pay a flat one-off fee for an affiliate deal or a percentage of the value of the deal. It depends on the value and the cost structure of your product. If it's a one-off sale you'll know the exact cost and uplift therefore a one off fee is sensible. if you have an ongoing residual income model you could negotiate a fee to be paid for the first three moths to spread the payments!
It's really a flexible model that you need to work out and discuss with your affiliate. Make sure that you're both comfortable and draw up an Affiliate Partnership Agreement for both parties to sign so at least there's a solid agreement to form the basis of your partnership.
For more information on how you can start an affiliate scheme just give us a call on 0121 430 9002 - we'll be happy to discuss your options!