Businesses should always be looking for ways to generate greater revenue. In the case of affiliate marketing, promotional efforts are not that expensive, and the sales can be significant. The opportunity to make a profit from affiliate marketing efforts and improve the bottom-line of the company is a boon to many small businesses seeking new ways to grow.
Let’s look at how affiliate marketing can grow revenues when it’s managed properly and its challenges.
Seeing the sense in marketing a competitor’s products
Taking the example of a company that produces its own products and markets them on their web site, it’s easy to stop there and only try to profit from your product line. The idea of offering other related products that your company doesn’t make is anathema to many executives. However, when seeing things from the consumer’s perspective, what they find attractive about Amazon is the one-stop shopping. They don’t have to go elsewhere to pick up several items, even if they’re from different product categories or brands. The same also goes for other websites too.
According to Ben Givon, CEO of BAFF Networks, “Offering products from competitors where your company doesn’t have a competing product compliments your offer to customers rather than negates it. If your company doesn’t offer that type of product, providing access to a competitor’s product looks good and lets you gauge whether it will be worth developing a new product line to compete with them or not. Meanwhile, your company can earn commissions as an affiliate with their product, which is like taking some of a competitor’s revenue and keeping it for yourself. Why not!?”
Managing an affiliate network to increase sales
When you’re managing an internal affiliate network with many affiliates responding to you and having queries, it can get too difficult to manage without effective software that’s custom-designed just for this specific purpose. “Managing your own affiliate network is complicated when it’s disorganized. Having a tool that lets you keep on top of every aspect of the business is key to ongoing success,” says expert Ben Givon.
With your own network, you can recruit scores of affiliate marketers keen to review your products and earn commissions from selling them. It doesn’t matter whether you have a sales team on salary or not. With a good collection of online affiliates working on your behalf on a commission basis, revenues are likely to rise. However, staying organized as you grow the network’s size is important not to lose the affiliates’ faith who are quick to report when things go wrong.
Build business relationships with competitors
It doesn’t always have to be a combative relationship that your company has with its direct competitors. Not every business covers all aspects of their industry. A software company may offer solutions to certain problems, but not others. A second software company might have its release, which helps customers tackle a different set of problems successfully. Ben finishes by saying, “Often, small businesses have complementary product lines which open the door for cross-promotions and affiliate promotions too. In the case of affiliate deals (or offering a discount on a competitor’s product when purchasing your own), there’s plenty of ways to make it a win-win for both parties.”
Making money from affiliate marketing is open to individuals and companies that see an opportunity to profit. Not doing so leaves money on the table. Staying organized while managing your business’s affiliate side, whether as an affiliate network or an affiliate of several other networks, avoids missing out on chances to earn more and taking advantage of special offers.
This article first appeared on BizCommunity.com