Can Affiliate Marketing Work For Your Business?

Have you investigated the benefits of affiliate marketing? Read on to see if your reseller business can benefit from this effective marketing strategy.

Often times it takes a little boost to get your new reseller business up and running. So many factors play into whether your business will be an immediate success or just another startup that missed the mark. But before you get discouraged and throw in the towel, check out how affiliate marketing can give your business a boost.

What is affiliate marketing?

Affiliate marketing relies on a partnership. It is when a business rewards an affiliate for each visitor or customer that arrives at the business’s site through the affiliate’s marketing efforts. In other words, one business is driving traffic to another site for a small reward.

Here’s an easy example: let’s say you have a lemonade stand that isn’t receiving the traffic that you’d like. You fear your lack of success is because most people aren’t aware of the service you’re offering. In order to boost sales you go down the street to the popular sugar cookie stand that always has a long line in front of it. You talk with the owner and tell him that you are willing to pay him a small fee if he’ll allow you to place a sign advertising your lemonade stand next to his cookie stand. He says yes and you agree that you’ll give him five cents for every person that comes to your lemonade stand from the cookie stand.

This is how affiliate marketing works: just swap out the lemonade and cookie stands for websites.

Who is actually benefiting from this?

In order to better understand how this all works and who is benefiting, let’s take a look at the three parties involved in affiliate marketing:

AdvertiserThis is the person who pays another company to place ads or links on their website.

PublisherThis is the owner of the website who receives commission from the affiliate for hosting their advertisements or links on their website. The publisher promotes the ad and helps direct traffic to the advertiser.

Consumer In order for both the advertiser and publisher to make money, someone has to actually buy the product. The consumer is the one paying for the product or service.

As you can see, the advertiser pays the publisher in order to place links and ads on their site. Next, a consumer sees the ad and makes a purchase. The publisher makes money from the affiliate, who makes money from the consumer. In a sense, everyone wins.

How is this all tracked?

So how can you know if people are actually arriving at an advertiser’s site through the affiliation? It’s all tracked with cookies, which are integrated into web browsers. These cookies track and store all kinds of browsing information.

Cookies sometimes get a bad rap, but they’re actually very secure. In fact, they’re just text files that the browser uses to remember certain things. Cookies store preferences, logins and other information that a user may want stored for the future.

This concept of storing information transfers over to affiliate marketing. Cookies store data about who clicked on a link and when. By using this data it can be determined how much traffic a website receives from its affiliate.

How can I get started with affiliate marketing?

Most of this is done through an agency that specializes in setting up, monitoring and sustaining affiliate marketing campaigns, although some businesses choose to manage their own affiliate channels internally. Here are some popular affiliate marketing services:

With these services, you can be either the publisher or the advertiser. Once you’ve determined which side you want to be on you can pick and choose who you want to affiliate with.

Who should I partner with?

Affiliate marketing can be advantageous for companies, but only when done correctly. Trying to affiliate with every company out there won’t get you very far. Instead, try to partner with companies that make sense and connect with your particular niche.

For example, if you resell web hosting you can place your ads and a link to your site on a web designer’s website. Their clients will still purchase web design services from them, but they will then see your ad and choose your business for their web hosting solution. This creates a win-win situation for both parties.

If you’re reselling domains you could work with an SEO agency to try and gain more clients. By paying the SEO agency you feature your company on a site that’s closely related to the service that you offer.

Affiliate marketing works great with other tech companies as well. Think about what services go hand in hand with your company and consider teaming up. Make sure you only affiliate with companies that are credible and whose client base will be similar to yours. Always do a little research before deciding who to partner with.

With, we help you get started so that you can build a thriving reseller business. Get started today!


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