Affiliate marketing can be defined as the strategic placement of ads on a Partner’s site in return for something of value (content, reciprocal links, referral fees, etc.). Affiliate marketing is useful for extending your reach beyond search engines as it enables you to target specific audiences with a personalized message.

Affiliate marketing can be very profitable due to its low cost, the ability to target specific audiences and the ability to leverage your partner’s credibility. This is especially attractive for companies with limited brand awareness.

Example: a provider of specialized financial services could provide monthly articles to a financial information site in return for a byline, a hot-linked logo, or prominent placement on its site. The finance site needs content for its audience and the services firm needs exposure and leads. Since neither have excess dollars to spend, this works out well for both parties.

Keys to success
Listed below are keys to successful Affiliate Marketing programs.

Tailor Message to your Audience
Define your target audience (based on the site you are advertising on) and tailor your message to address their specific needs or interests.

Choose Your Partners Carefully
Be selective about whom you partner with. Analyze and rank the best sites based on the reputation of your partner, how its site is perceived, the demographics of its audience, the expected results (impressions, click-throughs) and costs. Focus on Quality over Quantity. The 80/20 rule often applies in large initiatives; most of your results will come from a small number of sites. Cater to these top performers. Treat them well and seek to identify new ways for them to make money.

Create Personalized Landing Pages
Personalize the landing pages for visitors that come to you through your affiliates. Send visitors to these designated landing pages and make sure they pertain to the affiliate site and the related topic of interest.

Measure Results
Measure results for each affiliate site and campaign. Monitor results and act quickly to terminate ineffective programs so you can focus on those that are working

Create Value for Both Parties
For a partnership to be successful, both parties must derive valuable from it. Unless you can provide your partner with strategic value such as positioning, credibility and exposure, or tactical wins such as revenue and new customers, it will be difficult to get something from them in return. Conversely, the more value you are able to show your partner, the more value you should receive. So be creative and identify how you and your partner can best serve each other.

Follow Through and Report Results
Make sure your affiliates follow through. Make it easy by providing them with everything they need, including finished ads, copy for describing your business and other materials. Routinely check their site to make sure they post your links as agreed. Report results to your partners. Send them periodic progress reports; let them know what is and is not working well.

Like other programs, Affiliate Marketing can be a very effective program for growing your business. We hope you found this information to be valuable.