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This performance-based marketing strategy predates the internet. The idea of revenue sharing existed before the conception of the words “Affiliate Marketing.” It was pioneered by William. J. Tobin, the founder of PC Flowers and Gifts, was introduced to the public on Prodigy Network in 1989. In 1993, PC Flowers and Gifts generated sales running into millions of dollars, after which it bore the concept of affiliate marketing, where Prodigy Network was being paid in commissions. Since 1993, Affiliate Marketing has grown in leaps and highs as the practice has proven to be more beneficial each time it is adopted.
In 2006 alone, the total revenue from Affiliate Marketing worldwide earned 6.5 billion U.S dollars in gaming and gamble, retail, telecom, lead generation, travel, education, personal finance, contextual advertising, etc. This growth spiraled into the following years, as more success through this is still being recorded.
Benefits of Affiliate Marketing
Due to the positive results of Affiliate Marketing, more businesses are beginning to tilt towards it. More companies and organizations are able to market a product or service by learning about affiliate marketing for beginners, with online learning this process doesn’t take much time, budget, or effort. There is also the benefit of minimum risk, in addition to a certainty of a high return on your investment, business growth, and awareness.
Let’s take a look at them in detail
High Return Of Investment
With the cost accrued in every sector that propels a business, Affiliate Marketing businesses can boast the opposite. This, in turn, gives them an increase in the return of investment obtained. You own creative rights to your product, and it is being marketed by affiliates who enjoy a direct relationship with your target consumers. You save on advertisements and marketing, which usually takes up many of the costs a product accumulates. This saved cost is what is paid duly to the affiliates.
Opportunity to own a business
An Affiliate Marketer can boast of owning his or her own business. The opportunity to earn flexibly, on your time, basically run your business on your terms is a perk that comes with being an Affiliate Marketer. You also get to choose a specialty that suits your expertise or field of experience.
With Affiliate Marketing, businesses can start on a low scale and build up. The propensity for growth is traceable and achievable. With a great product, you can begin to infiltrate the market, inclusive of your target consumers. With your Affiliate Marketers, you need not go over the top to market your products. Your Affiliate Marketers can afford you the reach you need for that targeted revenue, without any exorbitant sum paid to marketers or advertisers.
Closer Relationship with Consumers
Due to the relationship shared by a business’ Affiliate Marketer and his or her customers, understanding the consumer’s needs is never lost in transition. There is an understanding of consumer needs that makes it easier for a company to continually perfect its products and services to its users’ needs.
As mentioned earlier, the risk involved reduced to a minimum. With the low cost involved, there is a commemorative low-risk factor therein. By this, commissions paid to the Affiliate Marketers are only based on when a sale is made. This works perfectly for companies that run on a budget.
Your brand becomes more visible as it grows within your consumers. Due to your Affiliate Marketers’ reach, your product is not only seen by those they market to directly but also those within reach of the Affiliate’s direct consumers, who we would like to call the indirect reach. This kind of marketing enables you to permeate the market with little cost in pushing these products.
These benefits all work in tandem to make Affiliate Marketing what it is today. The rise of Affiliate Marketing is also great, thanks to these benefits that continually prove that the Affiliate Marketing method is the go-to method for businesses to flourish.