Affiliated Marketing is simply a sales marketing technique that involves multiple parties and stakeholders that essentially benefit from each other. Affiliate marketing is the process of when one individual or company benefits by promoting the products or services of another individual or company and in return gets either a commission or a reward.
These marketing hubs are built up of affiliate networks which are essentially just tightly knit groups of individuals that promote each other to constantly get and give benefits. UK affiliate networks are perfect examples of well-working and self-sufficient networking hubs.
It is widely regarded as a performance-based marketing technique in which there are four main parties involved which are as follows:
1. Merchants or sellers are the party that sells the product or service in question. They provide the product or the service in topic to the end customer.
2. Affiliates are individuals that advertise the merchant’s products and get commission or rewards on every sale. Affiliates help merchants devise marketing plans and create ads, content, campaigns, or marketing text to sell the product or service.
3. Consumers are the final beneficiaries and buyers of the product or service.
4. The network is the place or platform where the interaction between the affiliate and the customer takes place.
Affiliate networks can essentially be defined as companies or individuals that work for each other by either promoting or advertising each other’s products or services or by offering complementary products in bundles. These networks can be both within and without each other’s industries or business fields.
The multiplying effect of each added company’s database help increase the overall database of the network and hence creates a pool of potential customers to advertise to for each player or company. These networks are an excellent resource for small companies that do not have either the financial backing or the elite clout to back their product or advertise for them.
What helps them the most is that instead of focusing on finding new customer leads to contact potential customers, they purely can focus on their core business and work and leave the rest up to their network and its contacts.
Another characteristic of affiliate networks is that they also provide discounts or voucher codes for free goodies for each other’s products and services. The merchant can then identify which sale was made through whom and can allot commissions accordingly.
Companies can also team up with external brands and companies and participate in third party channels. Also to be noted is that link sharing is an integral part of affiliate networks and so are reposts. For a small company, becoming a part of a well-established affiliate network is a big deal and could possibly do wonders for its brand image.
Additionally, the affiliate network already has an image of being honest and trustworthy amongst its audience members, it can be an added benefit for them. Also, despite the benefits to their own sales, companies can earn commissions when they help other firms gain revenues and new customers.