Affiliate Marketing Meaning

Affiliate Marketing means the process of attracting and bringing to the attention of a product’s or services potential buyers. The word ‘firm’ indicates a firm partnership, which is typically based on an agreement of mutual profit sharing and assumes that a particular affiliate site is actually paid a certain commission for driving visitors to the merchant site. Affiliate marketing is also mutually advantageous both for merchants and affiliates, since it offers affiliates plenty of chances to earn additional income streams by simply increasing their exposure of the merchant’s products and services. It also gives them a chance to test the viability of a particular merchant’s offers and find out if it would be more profitable for them to promote and sell its products.

affiliate marketing meaning

The merchant pays a certain amount of commission to affiliates to encourage them to market his products and services on their websites. They may in addition be reimbursed from time to time for expenses incurred on marketing the product or service of the merchant. This all becomes part of the affiliate marketing agreement between the parties. The agreement generally stipulates that the commission the affiliate receives is non-refundable, with some merchants allowing the customers to keep part of the commission, while the balance is given to the merchant.

Since affiliate marketing works on autopilot, you have ample opportunities for getting into the business. If you know the products and services of enough people, you can pretty much walk into a store and hand them a flyer, smile, and say “I would like to promote our product in your place. Would you mind giving us a call?” That could be your first sale. But do not forget that you need to learn how to effectively market your affiliate products. Here are several affiliate marketing tips for travel niche businesses:

o Be persistent. No matter how few sales you make in the beginning, keep at it. Make every effort to convince the visitor that your affiliate marketing program is worth their time and that by promoting it they will achieve their desired action such as buying a travel package. The more the visitor performs the desired action, the higher your chances of making a sale. Persistence pays. Try to persuade the visitor at whatever cost is necessary to convince them.

o Sell the Benefits. When a visitor performs an action that you have promised to them, you must provide them with a benefit in exchange. A commission is only granted when that action is carried out. Hence, instead of just awarding a commission, sell the benefits associated with the program type the customer is interested in. For instance, if you are marketing a program type related to cruises, try to offer a free travel insurance or discount on other cruises.

o Become Partners. Travel affiliate programs can be extended to include other travel products and services if you become partners with other travel affiliate programs. If you take this route, you will be providing the same value added service to the same customer but will be reaching an additional group of customers.