Affiliate marketing basics Nigeria - Welcome to the premium Nigeria affiliate marketing guide with free tips for making money from affiliate programs.
This affiliate marketing basics section of this Nigeria affiliate marketing guide focuses on helping readers appreciate the value of affiliate marketing and why is one of the best ways to make money.
Let's start with the basics.
What is affiliate marketing?
By definition, affiliate marketing is the process by which independent sales people promote the products or services of a company for a share of the sale amount.
There are two parties involved in this transaction:
1. The product manufacturer or service provider and
2. The affiliate or marketer
Considering the above, this affiliate marketing guide presents the first basics of affiliate marketing.
Affiliate marketing basics #1: The product manufacturer or service provider must specifically state that he wants independent marketers or affiliates to promote his products or services. And she must specifically state the reward they get for doing so and how they will be paid.
Affiliate marketing basics #2: The product manufacturer or service provider must provide a tracking service that allows affiliates or marketers track the traffic they send to the manufacturer or service provider vis a vis the sales they generate. The percentage of leads that convert to sale is called the conversion ratio.
Affiliate marketing basics #3: The reward must be substantial enough to inspire affiliates to continuously promote the products or service. If promoting the product or service is not profitable, sooner or later, independent marketers will stop promoting the products or services of the company.
This leads us to the fourth basic tenets of affiliate marketing according to this Nigeria affiliate marketing guide.
Affiliate marketing tenent #4: Affiliates are in for the money. They promote a company's products or services because of what they stand to gain. Therefore, serious companies design the pay plan to substantially benefit affiliates.
Affiliate marketing basics #5: The product manufacturer or service provider significantly increases sales volume generated by affiliates when it pays affiliates for inviting other affiliates to join the affiliate program of the company.
For example, one Canadian online software company that offers a web-based online software pays affiliates 25 percent of the annual subscription price for its software. The annual subscription for the software $299 USD. Affiliates earn $75 when they close a sale.
To grow the company sales volume attributable to affiliates, the company introduced what is called second-tier commission.
How does that work?
using this model, the company also pay affiliates a percentage of the sales generated by other affiliates they invite to join the affiliate program of this software company. In this particular case, the second tier commission is 10 percent of what your sub-affiliates generate.
This particular software generates over $10 million in sales every year. And a huge chunk of that comes from affiliate sales.
There is no doubt about it.
Affiliate marketing benefits both the affiliates who join the program and the company that establishes the program.
Companies that use affiliate marketing to expand their business end up doing so at a fraction of the cost it would ordinarily take to expand their businesses to those far-flung areas where affiliates operate. And they get deeper market penetration.
On the other hand, affiliates promote the company's products because they want a simple way to earn money with the initial huge startup capital conventional distributor business requires.
Affiliate program marketing is a win-win program for both the company and the marketers or affiliates.
Remember affiliate marketing basics #4 above?
It's all about the money.
Consequently, take this advice from this Nigeria affiliate marketing guide seriously . . . if you're thinking of starting an affiliate program, make the affiliate it worth the effort to affiliates.
If you wish to join an affiliate program, be sure to understand the pay plan and read the terms of service before joining.
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