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If you are familiar with the term "leverage", you know that it doesn't just apply to crowbars and hammers. It has a multitude of meanings depending on the industry being discussed. Leverage makes things easier by definition and using the thousands of affiliate marketers that belong to a network to market your products and services at their expense and paying a commission for the sale is a good example of "leverage". When coming up with your sales strategy, one looks for the most cost-effective methods that will "net" your company the most money after expenses. Here are some methods one might use to advertise a product or service.
Of course, there are plenty more we could add to this list but this list will help me illustrate my point. Television and radio tend to be very expensive mediums to use to advertise your product. Because of that, one must be very careful to do an adequate "cost-benefit" analysis so that expenses don't eat up the profits. You don't want to sell 1000 widgets at $1 each but the radio ad costs you $1,500. You just lost $500 in that scenario. Newpapers ads might be reasonably priced but you may have to worry about your sales volume in that case. If the ad costs $100, but you only sell 50, you're still out $50.
The Internet may seem like a perfect marketing medium for most products and services. But you can lose money on the Internet as quickly as you can lose money in Las Vegas. You have to make sure you match the right internet marketing techniques with the right products. Do you want to take the risk of trying to figure all of that out? An affiliate network is the answer!
Let's take an example. Let's say that you came up with new diet products that would retail at $42 per bottle and let's say that the actual cost to make is $20. If you sold this product yourself, you would make $20 but have to pay for what it costed to make that sale. You might have advertised it on Google. Well Google isn't cheap so your $20 profit may actually only amount to a $10 net profit after paying for advertising expenses.
As an advertiser on an affiliate network, you can virtually eliminate your marketing risk by setting the commission you will pay the affiliate marketers when they bring you a lead that converts. The word "convert" in the affiliate marketing world just means that something successfully sold and a commission is earned. When an offer converts, it also means that the affiliate marketer responsible for the sale, figured out how to find a buyer with his or her own money. You as the advertiser don't need to know the details because you really only want to make a profit. Plus, you as the advertiser don't pay anything if nothing is sold. Advertising on an affiliate network is usually free so there's nothing to lose with a lot of upside potential to gain. Affiliate networks have 100's if not 1000's of "hungry" affiliate marketers looking for good offers to market. By advertising on an affiliate network, you are potential enlisting the help of 1000's of sales people without the expense of an office building, employee benefits, dealing with raises, meetings, etc.
That's what I call "leverage"! An affiliate network like Affiliate Money Store can help you minimize your marketing expenses by allowing you to offer a fixed commission for every sales that is made. If there's no sale, there's no commission paid. No risk, all reward! And you can have your offer up in minutes!
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