If you are a web hosting company looking out to gain more customers but don’t want to spend much, affiliate marketing is one of the great options you have. The risk for you to use affiliate marketing is very low and the reward is high. You only require paying the marketing affiliates when a customer converts, not when they drive traffic to your website.
So, what exactly is affiliate marketing and how it benefits your business. Affiliate marketing can be thought of as outsourced marketing, where you hire affiliates who you pay to bring customers for your website. You only pay them if conversion actually happens and not when traffic is generated. If you produce a million visitors in a month, but the visitors are not converted to leads or clients, then it’s almost of no use. This is why the affiliate marketing arena is so popular, especially in the web hosting industry where most of the business comes from affiliates. These programs can actually bring in more revenues than you gain from any other marketing techniques.
Hosting affiliate programs bring in high commissions for those providing new sales opportunities. For every sale generated, there is a minimum commission that is paid. Most of the businesses follow inverted pyramid approach, wherein the commission increases as the number of sales increase for an affiliate.
If you wonder how these firms can afford to pay such high commissions, it is due to their awesome business plans. They believe that if a customer purchases a new web hosting plan, they can retain the customer for longer duration of time by offering consistently good services. So, this way they gain more sales from the customer over the time. As a result, it is very lucrative for web hosting businesses.
How affiliate marketing works?
1. Affiliate marketer is assigned a tracking URL: This step will track which affiliates are driving your traffic.
2. Affiliate marketer will market your company: affiliates can market your firm via different ways like paid traffic (eg. Adwords), email blast, a YouTube video of your product along with a link to the affiliate ID, blog posts, reviewing products etc. There are many possibilities. When you hire affiliates, you can also limit how they can promote your website.
3. Customers or leads are gained: This is when visitor buys the product or signs up.
4. Affiliate gets the commission: when the affiliate gets you the customer or lead, you pay them.
Something to know is that referral programs and affiliate marketing are different. Referral programs are meant for people who are already clients to the firm. For example, if a company has a referral programs and a current client of the company tells his friend about the company, the customer can get some kind of reward through the referral program. However, with affiliates, they don’t need to be even clients. Anyone can be affiliate.