What is Affiliate Marketing?

affiliate marketing

Online marketing has created new and innovative ways of connecting businesses and consumers. One such way is affiliate marketing, and it can be a great way to build business partnerships and bring in customers. In this article, we’ll discuss how affiliate marketing works and how to use it the right way for your business.

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What is it?

Affiliate marketing is a popular marketing strategy that has become all the more popular with the emergence of online business. Affiliate marketing can be beneficial for businesses who want their products to reach a wider audience and also marketers, who can generate passive income. The way affiliate marketing works is that marketers will earn a commission for promoting your business, for example, 5% of the sale.

Where can it be found?

You’ll find examples of affiliate marketing almost everywhere. This may be in the form of business partnerships, or promoters who earn commission on what they sell. For example, Flat Tummy Tea and Sugar Bear Hair have a large base of “affiliates” on social media promoting their brand. For every link clicked and every product purchased, the third-party earns commission.

Advantages and disadvantages of affiliate marketing

Advantages

  • Affiliate marketing is an easy way to get the name of your business out there, and you can reach a wider customer base
  • It is a mutually beneficial for the business and the marketer
  • It is generally a low-cost and quick marketing method
  • Once a customer has purchased a product from you through an “affiliate”, they may come back to your website independently.

Disadvantages

  • You’ll need to make sure your promoters advertise your business in a way that adequately reflects your brand voice
  • You can’t control how the marketer promotes your business

Choosing your marketer

It’s important to be careful when choosing someone to market your products. Make sure you clearly convey how your product works and what makes it unique. At this point, you should also ensure that the methods which are used to market your products aren’t false or misleading. Further, you should also keep an eye on how the arrangement is going. If you’re not seeing results, there’s no reason why you can’t approach other marketers or businesses.

Affiliate marketing can be a great way to grow your business and sell your products to a wider market. If you want further information on your obligations when marketing your business, you can consult a lawyer for further advice.

Don’t know where to start? Contact us on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.

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