Affiliate Marketing and Ecommerce
Affiliate marketing and ecommerce don’t always go hand in hand. Basically, affiliate marketing is a type of ecommerce as it is a business that is accomplished electronically.
So what is Affiliate Marketing?
Affiliate marketing is like having a sales force working on a commission basis. Let’s say that person A is a seller of aquarium supplies while person B has recently released an eBook teaching how to breed different types of fish. Person B could strike up a deal with person A, asking them to put a banner in their domain that advertises the eBook. For every sale the author makes of their book through the domain of person A, the aquarium supplies seller would get a flat fee of 10%. Person B would be under no obligation to person A if no sales were made of their book. This is affiliate marketing.
Ecommerce as Affiliates
Referring from the last example, the person selling aquarium supplies is basically involved in Ecommerce. The fact is that ecommerce owners are the best affiliates for affiliate marketing. This is because online business owners are open to any earning opportunities that might come their way. In fact, it might even be a two-way deal. Different business owners in a somewhat related niche could post each other’s ads in their website with the promise of per-sale commission. By doing this, each person has the capability of appealing to a larger market while at the same time having the chance to earn more.
According to studies, ecommerce and affiliate marketing could actually speed up the development process of a domain. As affiliate marketers link with different ecommerce websites, they could appeal to a larger market without spending a dime. For example, the author selling his eBook could also affiliate with other ecommerce sites such as those selling customized aquarium designs or another seller involved with aquarium supply sales.
How to Create a Stronger Affiliate Team
Keep in mind though that even with ecommerce and affiliate marketing, there is still very strong competition. This is why as much as possible; individuals should take the time to choose their movements carefully. This is especially true for the people involved in affiliate marketing. Basically, they should recruit as many affiliates as possible and perhaps offer a two-tiered commission system. This way, their affiliates would have a stronger impulse to promote their product in order to make additional sales.
With the right approach, affiliate marketers and ecommerce owners will find themselves getting excellent revenues by helping each other. However, it is important to point out that this only works if they help each other with the process while at the same time promoting their products as much as possible. Note that affiliate marketing and ecommerce only works when the two are operating in a related niche. It wouldn’t work to post an affiliate advertisement about aquariums in site that sells clothes since the market is hardly compatible. Hence, choose ecommerce and affiliates correctly in order to get the best results possible.
Assuming you want to learn regarding ecommerce make sure to visit ecommerce.about.com where my friend Ajeet Khurana is the author. It has insightful pieces, for e.g., benefits of e-commerce.