How Can Small Businesses Benefit from Affiliate Marketing?


A performance based model by which an E-commerce retailer pays an external website for traffic is known as affiliate marketing. It is the process of promoting other person’s products/services on your website. In simpler terms, affiliate marketing is a process wherein you like a product/service, you promote it with the others and every time there is a sale, you earn a share of it based on your contribution.

The affiliate marketing has four core players: The merchant which is the brand or retailer, the network, the publisher and the customer.

Paying only for results is an indeed cost effective method for small businesses who want to seek help from the marketers thereby increasing their own sale. Even when the product is not ready, the person can make money by promoting other person’s products..

Reasons Why Affiliate Marketing is a Good Option for Small Businesses:

  • You Pay Only for Results:
    When a customer converts that is the time you’ll pay the affiliate and not just for driving traffic to your website.
  • Cost Effective:
    As the risk involved with affiliate marketing is low and the reward is high it becomes cost effective.
  • Affiliates Reach the Audience Better:
    They have a more targeted and regional approach with the help of which they are able to generate better leads.
  • Awareness about Cost:
    Determining whether you are losing out on money or making profits is a fairly easy task.
  • Wide Reach:
    As the product/service is getting promoted by each affiliate the chances of people being aware of your brand rise.

Keeping these reasons in mind, affiliate marketing is an age old tried and tested means of marketing which is still effective for a lot of businesses. Though, now it is frequently overlooked by advertisers it still continues to play a significant role in e-retailers’ marketing strategies.

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