The benefits of affiliate programmes

Affiliate programmes were established to take advantage of online reciprocity, and essentially works on the concept of being paid a sum per click-through, per registration or per sale that a merchant makes on referrals from your site. They have thus emerged as a valuable option for marketers suffering through online advertising woes, and those that cultivate leads and nurture their networks could stand to profit.

Niche marketing – or taking your clearly defined products or services and introducing it to a highly targeted group of prospects - has long been a smart way to advertise. Affiliate programmes takes this a step further – you don't have to pay anyone a cent unless your ad yields a direct sale.

Created by Amazon.com in 1997 as a way of generating sales through referrals from linked web sites, affiliate programmes today are a big source of revenue, and are rapidly establishing themselves as a fair method to generate revenue from visitors and to increase traffic and sales.

These programmes work in two ways, either by offering businesses providing products and services a way of marketing their wares and bringing prospective customers to their site, or by providing web site owners with a means of earning revenue from the traffic to their site.

And it holds great advantages for both the merchant and the affiliate. Unlike traditional advertising, the merchant only pays affiliates for the results it wants, whether that is a sale, a click-through or a lead. Traditional advertising is thus much more risky for the merchant. And from the web site owner's point of view, because there is less risk for the merchant, it is easier to join an affiliate programme than to attract advertisers.

Use care and good judgement

Affiliate programmes are a great way to bring people to your web site and raises the visibility of your brand, logo or web site at virtually no cost.

But there are many get-rich-quick schemes out there, and smaller businesses especially could jeopardise the effectiveness of their own interaction with customers through their web site by focusing only on the possibility of making revenue from such programmes. However, a reputable affiliate programme can potentially provide a useful and cost-effective way for any business to compliment and extend its existing web site offering to its customers.

Thus, affiliate programmes need to be treated with care and good judgement. It is not wise to join as many affiliate programmes as possible, thinking only of the potential revenue, as the danger exists that the offerings will not fit in with your site and will not be relevant to your visitors. Always think of the visitors to your site and pick programmes that are relevant to them. Also ensure that the company you choose to affiliate yourself with is reputable and financially sound.

If you keep this in mind, affiliate programmes could hold great benefits for you as it not only allows for free branding and very low-cost customer acquisition, but it will also ensure that every interaction with your customers and affiliates is an enjoyable, rewarding experience.