Affiliate Marketing is an advertising method that uses a revenue sharing plan to promote a certain online business. The online business pays a commission to affiliates for any sales or traffic generated through banner ads on the affiliates site, depending on the type of affiliate marketing program both are participating in. Affiliate marketing can be beneficial to merchants and affiliates alike.

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Affiliate Marketing Benefits for Merchants

Increased Sales- Affiliate marketing can increase sales for online businesses without causing a huge increase in advertising costs. In fact, affiliate marketing is one of the least expensive advertising strategies utilized by online businesses. The low cost, coupled with the potential benefits make affiliate marketing an advantage impossible to ignore.

Time Savings-Merchants can choose to expend time searching for affiliates directly, or they can choose to join established affiliate networks. Joining an established affiliate network takes very little time and provides a method to easily manage affiliates and payouts, since nearly every aspect is automated. Affiliate marketing campaigns developed using the tools provided by the companies that run them are usually very simple to understand and operate.

24 Hour Earnings-Merchants obtain 24 hour exposure, 7 days a week through affiliate marketing. Sales can be initiated and carried through at all hours of the day with little or no outside intervention. Reaching numerous customers all over the world has never been easier or more convenient than it is now. With affiliate marketing, the world is truly your oyster.

Minimal Investment-Merchants can find numerous affiliate networks that provide services for very little cost. Sometimes no initial investment is involved; merchants just pay commission when sales are made. This is extremely cost effective and makes effective marketing possible for even the smallest businesses.

Broader Market Base- Merchants can reach more potential customers by using affiliate marketing strategies. More people can be reached across affiliate networks than with traditional advertising methods that usually cost much more. Affiliate marketing can level the playing field for businesses of all sizes.

Affiliate Marketing Benefits for Affiliates

Small Investment-Affiliates can start a business with very little investment involved. In most cases it costs no money to join an affiliate network as an affiliate.

Easily Implemented- Most affiliates already have a website. It takes very little time to add a small portion of code and even less time to collect the money. Being an affiliate is an easy job that anyone can perform from the comfort of their home.

No Selling Involved- While some ambitious affiliates might aggressively push some products and services featured on their sites, it’s not necessary or required. All affiliates need to do is display a small banner or portion of text on their site and collect commission. It’s much simpler than developing a product and having to market it. Affiliates don’t have to work hard to earn money.

No Maintenance Necessary- Merchants are responsible for their products and services. Affiliates aren’t bothered with financial transactions or customer support. Affiliates aren’t chained to their computers and can come and go as they please. In fact, affiliates really aren’t required to do much at all.

Obviously, affiliate marketing can be a win-win situation for affiliates and online businesses. Merchants can concentrate on business matters without having to actively market the product, and affiliates can market the product without having to attend to any other business matters. In return, affiliates get a reliable source of income in exchange for assisting the merchant with advertising. Affiliate marketing is an ingenious method for advertising products and services online.